Rss

A temperature-controlled container on a lift gets loaded in side of a light blue plane.

Full-year traffic figures from several airports last week reflect an upside down year dominated by the coronavirus pandemic in 2020. Passenger business slowed to a trickle with airlines closing most of their networks in the face of government lockdowns and other health measures, while cargo picked up the slack in some cases.

Hong Kong, the world’s largest cargo airport, experienced a 7% decline in cargo to 4.5 million tons, and served 87% fewer passengers. The airport handled 68,660 cargo flights during the year, an 18.3% surge compared to 2019. The damage to Hong Kong came in the loss of passenger traffic because so much cargo is transshipped from regional flights to long-haul passenger and freighter flights.

In Europe, Leipzig/Halle Airport and Amsterdam’s Schiphol Airport both handled about 1.4 million tons of cargo in 2020, but they took different routes to that total. Airfreight grew 11.7% at Germany’s second-largest cargo airport, setting an annual record for tonnage, while volume fell 8% at Schiphol. 

Leipzig/Halle passenger throughput was 80% less than in 2019, but freight growth has been strong since late spring culminating with 35% year-over-year volume growth in December (140,000 tons). Private airport operator Mitteldeutsche Flughafen AG said the current year is shaping up strong too, headlined by medical goods, protective equipment, possible COVID-19 vaccines and e-commerce packages. 

Leipzig/Halle is home to DHL Express largest air hub and began hosting Amazon Air’s first European air hub in early November. Medical shipments are expected to increase once construction is completed on a nearby logistics center for disaster management. About 60 cargo airlines now serve the airport.

At Schiphol, freighters accounted for 61% of total volume, with 29% carried on passenger flights and 10% in passenger planes reassigned to cargo transport. Schiphol is the 14th busiest airport in the world for international air cargo.

The airport said inbound volume fell 4.7% and exports dropped 11.7% compared to 2019. The three biggest destinations for cargo tonnage were Shanghai, China, Doha, Qatar, and Chicago. 

Meanwhile, Brussels Airport reported 2.2% growth in cargo to 512,000 tons as passenger traffic plunged 74%. The strongest growth, 43%, came from all-cargo aircraft thanks to the arrival of several new carriers and the use of passenger aircraft as mini-freighters, which accounted for 30% to 40% of the full freighter activity. Express business also grew a healthy 18%. 

Imports, especially from Asia, increased, while exports decreased versus the same month a year ago. The airport is also at the forefront of COVID-19 shipments.

A 19% drop in cargo delivered by truck from other airports pulled Brussels Airport’s overall volume down by 3%.

In December, normally a strong cargo month, volumes decreased 3.4% compared to an unusually strong month in 2019.

In related news, Brussels Airport Co. has named Geert Aerts to succeed Steven Polmans as director of cargo and logistics in March. Aerts spent the past 17 years as a regional operations director for CAE Inc., where he managed a network of 16 flight simulator training centers and flight schools, including at Brussels Airport. The airport operator said his experience working for a global company with many stakeholders and solving problems for customers make him an ideal candidate for the job.

Polmans will depart Brussels Airport after 10 years, during which time he was instrumental in developing a regional cargo hub for pharmaceuticals and other goods,  and digital processes for connecting the local freight community. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

RELATED NEWS:

Amazon Air opens first European hub

Air cargo market levels off in November; passenger sector sinks

Rss

A temperature-controlled container on a lift gets loaded in side of a light blue plane.

Full-year traffic figures from several airports last week reflect an upside down year dominated by the coronavirus pandemic in 2020. Passenger business slowed to a trickle with airlines closing most of their networks in the face of government lockdowns and other health measures, while cargo picked up the slack in some cases.

Hong Kong, the world’s largest cargo airport, experienced a 7% decline in cargo to 4.5 million tons, and served 87% fewer passengers. The airport handled 68,660 cargo flights during the year, an 18.3% surge compared to 2019. The damage to Hong Kong came in the loss of passenger traffic because so much cargo is transshipped from regional flights to long-haul passenger and freighter flights.

In Europe, Leipzig/Halle Airport and Amsterdam’s Schiphol Airport both handled about 1.4 million tons of cargo in 2020, but they took different routes to that total. Airfreight grew 11.7% at Germany’s second-largest cargo airport, setting an annual record for tonnage, while volume fell 8% at Schiphol. 

Leipzig/Halle passenger throughput was 80% less than in 2019, but freight growth has been strong since late spring culminating with 35% year-over-year volume growth in December (140,000 tons). Private airport operator Mitteldeutsche Flughafen AG said the current year is shaping up strong too, headlined by medical goods, protective equipment, possible COVID-19 vaccines and e-commerce packages. 

Leipzig/Halle is home to DHL Express largest air hub and began hosting Amazon Air’s first European air hub in early November. Medical shipments are expected to increase once construction is completed on a nearby logistics center for disaster management. About 60 cargo airlines now serve the airport.

At Schiphol, freighters accounted for 61% of total volume, with 29% carried on passenger flights and 10% in passenger planes reassigned to cargo transport. Schiphol is the 14th busiest airport in the world for international air cargo.

The airport said inbound volume fell 4.7% and exports dropped 11.7% compared to 2019. The three biggest destinations for cargo tonnage were Shanghai, China, Doha, Qatar, and Chicago. 

Meanwhile, Brussels Airport reported 2.2% growth in cargo to 512,000 tons as passenger traffic plunged 74%. The strongest growth, 43%, came from all-cargo aircraft thanks to the arrival of several new carriers and the use of passenger aircraft as mini-freighters, which accounted for 30% to 40% of the full freighter activity. Express business also grew a healthy 18%. 

Imports, especially from Asia, increased, while exports decreased versus the same month a year ago. The airport is also at the forefront of COVID-19 shipments.

A 19% drop in cargo delivered by truck from other airports pulled Brussels Airport’s overall volume down by 3%.

In December, normally a strong cargo month, volumes decreased 3.4% compared to an unusually strong month in 2019.

In related news, Brussels Airport Co. has named Geert Aerts to succeed Steven Polmans as director of cargo and logistics in March. Aerts spent the past 17 years as a regional operations director for CAE Inc., where he managed a network of 16 flight simulator training centers and flight schools, including at Brussels Airport. The airport operator said his experience working for a global company with many stakeholders and solving problems for customers make him an ideal candidate for the job.

Polmans will depart Brussels Airport after 10 years, during which time he was instrumental in developing a regional cargo hub for pharmaceuticals and other goods,  and digital processes for connecting the local freight community. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

RELATED NEWS:

Amazon Air opens first European hub

Air cargo market levels off in November; passenger sector sinks

Rss

Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Laredo gets its third cold storage inspection facility; a Texas trucking company is acquired by Phoenix Logistics; SE-Freight gets 30 Kenworth trucks; and Revere Plastics acquires a Mexican factory.

Laredo gets third cold storage inspection facility

Officials in Laredo, Texas, are planning to build a third temperature-controlled federal import inspection facility to accommodate cross-border produce from Mexico.

The 22,000-square-foot, 18-bay facility will be located near the Colombia Solidarity International Bridge, 20 miles north of Laredo. The project is part of a public-private partnership with Laredo-based Garros Services.

A rendering of the new $10 million temperature-controlled federal import inspection facility to be built in Laredo by Garros Services. (Courtesy: City of Laredo)

Under the partnership, Garros Services will build the $10 million facility on property it owns near the bridge, according to the Laredo Morning Times. No timetable for construction has been announced.

“The $10 million building will be substantially larger than the two current inspection installations,” said Teclo Martinez, the economic development director for the city of Laredo. 

Garros Services currently operates Laredo’s cold storage inspection facilities at the World Trade Bridge and the Colombia Solidarity Bridge.

Garros Services is a business owned by Eduardo Garza, the founder of Uni-Trade, a customs broker and logistics firm with offices in both Laredo and Nuevo Laredo, Mexico.

Garza recently has discussed adding a free-trade zone on the Mexican side of the World Trade and Colombia Solidarity bridges along the Texas-Mexico border. 

Port Laredo imported about $3.7 billion in produce from Mexico through the first 10 months of 2020, according to WorldCity. Avocados led the way, with almost $900 million in imports, followed by berries at $765 million and tomatoes at $558 million.

In December, Livonia, Michigan-based Mastronardi Produce opened a 185,000-square-foot logistics facility near its current distribution center in Laredo near the World Trade Bridge.

Leamington, Canada-based Nature Fresh Farms also opened in December a 61,000-square-foot distribution center in Laredo aimed at being a major hub for its fresh produce imports from Mexico. 

Texas trucking company acquired by Phoenix Logistics

Longview, Texas-based Sam Dunn Express (SDX), a nine-truck carrier, was recently acquired by Phoenix Logistics, an affiliate of Milwaukee-based Phoenix Investors.

Along with the acquisition of SDX, Phoenix Logistics also acquired Sam Dunn Enterprises Inc., a warehousing, logistics, distribution and fulfillment firm in Longview. SDX and Sam Dunn Enterprises will become part of Phoenix National Transportation, a newly formed regional trucking business.

“Phoenix National Transportation is an exciting new venture for the Phoenix companies; its addition is the next step in providing even more comprehensive services for our valued clients and partners,” said David M. Marks, president and CEO of Phoenix Investors. 

Phoenix National Transportation will provide over-the-road transportation services in northeast Texas and nearby states, catering to the food, beverage and alcohol industries. Sam Dunn’s facilities in Longview will be absorbed by Phoenix Logistics and become its 10th location.

SE-Freight de México takes delivery of 30 Kenworth trucks

SE-Freight de México recently acquired 30 Kenworth T680 trucks equipped with 52-inch mid-roof sleepers and Cummins X15 Euro V engines. 

SE-Freight de México recently acquired 30 Kenworth trucks. (Photo: Kenworth)

SE-Freight de México was founded in 2008 in San Luis Potosí, Mexico. The company offers cross-border transport, distribution and storage services with locations in San Luis Potosí and Nuevo Laredo, Mexico, as well as Laredo, Texas, and Canada, according to its website.

The Kenworth trucks were manufactured at the Kenworth Mexicana factory in Mexicali, Mexico.

Revere Plastics Systems acquires Mexican factory

Revere Plastics Systems recently acquired Alliance-McAlpin NY and its Mexican factory in Ramos Arizpe, Mexico.

The acquisition, which closed Dec. 30, establishes Revere’s first manufacturing facility in Mexico, according to a release. Ramos Arizpe is located 178 miles south of Laredo.

“This acquisition gives Revere an important foothold in the vibrant manufacturing region of northeastern Mexico,” Revere CEO Glen Fish said in a statement. 

The factory in Ramos Arizpe employs 180 people and operates in a 53,000-square-foot facility. Revere’s customers include automotive companies, HVAC, appliances, recreational products, metering devices and business office machines.

Revere Plastics Systems is headquartered in Novi, Michigan. The company employs about 1,000 people and operates eight manufacturing facilities in the U.S., Canada and Mexico. 

Borderlands is sponsored by Forager. More information on Forager’s offerings can be found at: https://www.foragerscs.com/.

Click for more FreightWaves articles by Noi Mahoney.

More articles by Noi Mahoney

$1B USMCA logistics park planned for Mexico

Mexican trucker barred from driving in US

Volvo Trucks’ Mexico exit concerns carriers

Rss

The Federal Aviation Administration has given final approval to a Massachusetts based company to conduct autonomous commercial drone flights.

In a press release Friday night, American Robotics Inc., based in Marlborough, Massachusetts, said it has been approved for operation for its Scout System drones, including for operation “beyond-visual-line-of-sight” (BVLOS) of the operator.

“With these approvals, American Robotics is ushering in a new era of widespread automated drone operations,” said Reese Mozer, CEO and co-founder of American Robotics. “Decades worth of promise and projection are finally coming to fruition. We are proud to be the first company to meet the FAA’s comprehensive safety requirements, which had previously restricted the viability of drone use in the commercial sector.”

The Scout System features three components – the Scout drone, the Scoutbase, and Scoutview. According to the company, which has been testing the system for more than four years, the Scout System incorporates everything from landing to charging to data processing.

An operator monitors and controls the drone through Scoutview, a front-end fleet management and analytics software that enables remote interaction with the system. The real-time analytics provides accurate information, allowing users to track operations at a resolution and frequency not previously possible, the company claims.

“We are very grateful for the FAA’s willingness to work closely with American Robotics over the past four years on this precedent-setting authorization. With this set of approvals, American Robotics can begin safely operating our automated Scout platform for the benefit of the energy, infrastructure, agriculture, and security market verticals, helping unlock the projected $100 billion commercial drone market,” Mozer said.

Sold as a Robot-as-a-Service platform as a monthly subscription, the Scout’s autonomous system allows a user to monitor a single drone, or multiple drones, at distances up to 1,000 miles.

The Scoutbase is the base station that serves as a communication hub for the Scout drone. It houses and charges the Scout while collecting and transmitting the data from each flight to American Robotics’ data centers.

In a letter to American Robotics on Friday, which was in response to an exemption petition filed by the company on Sept. 20, 2019, the FAA approved a waiver to the visual line of sight for aircraft operation. The waiver is good until Jan. 31, 2023.

The waiver requires the company to issue a Notice to Airmen that includes location, altitude, operational area and time and nature of the activity not less than 24 hours in advance of any drone flight and must not be made within two nautical miles of an airport.

The Wall Street Journal reported Friday night that the FAA ruling will allow American Robotics to fly the drones along pre-set routes in rural areas and at altitudes below 400 feet.

American Robotics has been testing the drones in several applications, including in agricultural uses.

“Our interest in American Robotics’ technology started with the desire to have a drone imagery solution that was reliable, scalable, and executed with minimal human resources,” said Lance Ruppert, director of Agronomy Marketing and Technology at Growmark, Inc., a leading U.S. grower cooperative. “This technology, along with the FAA approvals to operate it without humans on the ground, is key to making drones a widespread reality in our industry. This is a game changer.”

Lisa Ellman, partner and chair of the Global UAS Practice at Hogan Lovells, and executive director of the Commercial Drone Alliance, said the FAA approval is an important step forward for the drone industry.

“The commercial drone industry is growing quickly and providing significant benefits to the American public but enabling expanded operations beyond visual line of sight is critical for the industry to truly take off,” she said. “Automated BVLOS operations are particularly important to opening the commercial sectors to the drone economy, including the agriculture and industrial verticals. Key to these operations is the use and FAA acceptance of new and innovative safety technologies, such as detect and avoid (DAA) sensors and software-enabled automation. American Robotics’ groundbreaking and exciting FAA approval is an important and significant step forward for the commercial drone community as a whole.”

Click for more FreightWaves articles by Brian Straight.

You may also like:

The FreightWaves Top 10: Bankruptcies, capacity concerns, protests and Trevor Milton’s departure

Maximizing trailer utilization: Why is it so hard?

Looking back at the Year of the Truck Driver

Rss

Chart of the Week:  Outbound Tender Volume Index – USA, Personal Consumption Expenditures – Durable Goods SONAR: OTVI.USA, PCE.DG

Consumer spending on durable goods expanded dramatically in the second half of 2020, showing a significant connection to FreightWaves’ national Outbound Tender Volume Index (OTVI). Prior to the pandemic, this connection was not as clean thanks to a healthier mix of manufacturing and industrial activity. The biggest question now is what happens if and when this spending recedes? First, let’s define personal consumption of durable goods to put it in context. 

Personal consumption expenditures for durable goods measures spending on products such as appliances and furniture. Durable goods spending accounted for 13% of total consumer spending in the U.S. in 2019. Spending on nondurable goods such as food and clothing accounted for 23%, while services spending was the bulk at 64%.

Over the past three years, durable goods spending has fluctuated. In 2017 annual spending grew 4.5% year-over-year and in 2018 it grew over 5% per month, while 2019 saw it slowing back to 3.5% on average. From June through November 2020, spending on durable goods averaged nearly 13% annual growth each month. 

Trucking tender volumes, measured by the OTVI, also saw an unprecedented increase in 2020, jumping 46% from Memorial Day to Labor Day. The OTVI accounts for both accepted and rejected tenders and is designed to show the quickest changes to truckload demand and not necessarily a good proxy for loads moved in a tight market like the current one. Taking rejected tenders out of the index, accepted volumes increased nearly 13% from Memorial Day to Labor Day, averaging over 21% higher than the previous year.  

There is not a one-to-one connection between personal consumption and freight volumes. Nondurables like food and clothing as well as unfinished goods and construction materials make up a decent portion of volumes in the U.S. The industrial sector, largely thought to fuel freight volumes in the past, is still recovering from the initial hit that occurred this past spring.

Industrial production continues to recover, but continues to underperform pre-pandemic levels. Retail growth has picked up the slack. Chart: SONAR – Outbound Tender Volume Index, Retail Sales, Industrial Production – USA

Freight volumes tend to lead consumption as companies order inventory in front of expected demand. Unlike capital goods and larger equipment orders, most durable goods are stored in warehouses and available for immediate distribution upon sale. Consumers have grown accustomed to quick fulfillment times over the past decade and companies with long order cycles risk missing out on sales.

In 2020 there was a combination of fulfillment and pull forward as companies struggled to maintain inventory levels for many of the goods thanks to the unexpected jump in consumer spending and production loss due to the virus. With transportation capacity becoming exceptionally tight and sourcing problems on the rise, there was also the need to order more than currently needed to make sure there were no missed sales opportunities. 

Once the pandemic subsides, consumer spending on durable goods is expected to fall as more money is spent on services. Some of this should be offset as the industrial sector increases activity, but the sense of urgency that has pushed transportation rates to new highs is typically not as applicable to this type of freight. 

Volumes may survive the reduction in consumer spending on durables, but the existing tightness will inevitably subside as the retail freight gives way to other types. Import volumes are expected to remain strong in the near term, but there are still many questions around consumer spending patterns as case counts decline. 

Preparing for a gradual return to normal as temperatures warm may be the best strategy. Cases seem to decline in the warm season and a vaccine will help accelerate this. The U.S. economy depends on services to be healthy and this current environment, though good for many trucking companies and retailers, is not sustainable in the long run. The government cannot continue to print money to keep everyone apart.   

It would be hard to imagine the current tight transportation market persisting throughout the year. Transportation spend would cannibalize budgets, forcing shippers to reduce costs in other areas and inevitably leading to a rapid decline in freight volumes. All parties should be expecting a moderating trend on the goods side this year, to say the least.

About the Chart of the Week

The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on FreightWaves.com for future reference.

SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time.

The FreightWaves data science and product teams are releasing new data sets each week and enhancing the client experience.

To request a SONAR demo, click here.

Rss

The Daily Dash is a quick look at what is happening in the freight ecosystem. In today’s edition, a federal watchdog has said that as many as 780,000 truck driver medical examinations may not be in the federal database. Plus, freight rates continue to surge and the Federal Motor Carrier Safety Administration plans another study on providing more sleeper berth flexibility.

Missing medical records

A seven-month outage of a medical examiner registry maintained by the Federal Motor Carrier Safety Administration (FMCSA) has resulted in approximately 780,000 driver examinations potentially going missing from the database, a federal watchdog has revealed.

John Gallagher has more on the impact: 780,000 driver medical exams could be missing from FMCSA database

Surging freight rates

U.S. freight rates surged in December, setting the stage for a powerful pricing tailwind in 2021, according to a monthly index published by freight audit and payment firm Cass Information Systems Inc.

Mark Solomon details the numbers: ‘All gas. No brakes’

More rest flexibility possible

Just months after the FMCSA added a new sleeper berth provision, the agency is looking at even more flexibility for drivers.

John Gallagher explains what FMCSA is proposing: Regulators propose more sleeper berth flexibility

New rules

The ABC provisions of the Dynamex decision in California can be applied retroactively, according to a decision handed down by the California Supreme Court.

John Kingston explains the impact: Dynamex ABC test can be used retroactively in worker classification litigation

Stories we think you’ll like:

Commentary: Amazon isn’t going into 3PL business; it’s already there

CDL fraud could rise under relaxed requirements

Online retailers pay almost double in logistics costs

Midwest furniture retailer Loves goes Chapter 11, blames Penske Logistics

Retailers turned to scanning technology to meet e-commerce explosion

FMCSA names 25 truck drivers to new safety panel

Price not supply driving rejection rates lower

Demand keeps capacity tight – FreightWaves NOW

Tiny electric delivery vans occupy former home of hulking Hummer H2

Did you miss this?

Navistar International Corp. (NYSE: NAV) said Wednesday it will lay off 250 employees as part of a plan to close and sell its Melrose Park, Illinois, facility to an industrial park developer. Another 250 workers will transfer to other facilities.

Alan Adler explains why the plant is closing: Navistar will sell Illinois facility, lay off 250 workers

Hammer down, everyone,

Brian Straight

Managing Editor

Click for more FreightWaves articles by Brian Straight.

You may also like:

The FreightWaves Top 10: Bankruptcies, capacity concerns, protests and Trevor Milton’s departure

Maximizing trailer utilization: Why is it so hard?

Looking back at the Year of the Truck Driver

Rss

Prologis facility in Coventry, United Kingdom

Logistics real estate titan Prologis Inc. (NYSE:PLD) said Thursday that it has named Dan Letter to the newly created post of global head of capital deployment, a move that reflects the growing complexity of the company’s business and its unconventional organizational reporting style.

Letter, who assumed the role on Jan. 1, takes on a large part of Prologis’ chief investment officer’s responsibilities. Letter will report to Eugene F. Reilly, the company’s current CIO. Reilly and Letter will continue to collaborate on investment projects. However, Reilly will devote more of his time to supervising all of the company’s regional presidents across a 19-country network. Unlike most companies where the regional heads report to the CEO, the ProLogis’ regional chiefs have a solid line to Reilly, not to Chairman and CEO Hamid R. Moghadam.

The new role also underscores the need to devote “more horsepower” to the investment side of Prologis’ business, according to Reilly. As Prologis’ business becomes more complex and far-flung, the financial and operating demands on the company have dramatically escalated, Reilly said. This was especially true in 2020 as companies sought out more logistics real estate to support surging e-commerce growth.

For example, Prologis plans to move more aggressively into urban fulfillment through its Urban Last Touch program, which has about 100 transactions under its belt in the past two to three years. Those projects, which typically involve repurposing an aging structure into a final-mile fulfillment facility to serve densely populated urban areas, are expensive and intricate to execute. Managing those types of projects require more intellectual bandwidth, Reilly said.

In 2020, Prologis completed $25 billion of investment activity. Of that, $17 billion was earmarked for mergers and acquisitions, it said.

In 2004, Letter joined developer AMB Property Corp., which seven years later acquired Prologis in an $8.7 billion deal that created the present-day behemoth. Prologis is the world’s largest owner, developer and manager of logistics real estate, with 976 million square feet under management.

Rss

Your fleet is only as good as the drivers you hire. You can invest in the latest and greatest vehicles and trucking technologies, but it will mean nothing if you’re unable to onboard and retain competent drivers. 

This is especially important given the current competitive hiring landscape and the shortage of drivers. In its most recent report, the American Trucking Associations estimates that by 2028 there will be a shortage of 160,000 drivers in the US trucking industry if the current trend continues.

Rss

[caption caption="According to a McKinsey & Co. survey, 60 percent of US consumers who used buy online, pick up in store (BOPIS) in 2020 will continue to do so after the COVID-19 pandemic subsides. Photo credit: Michael Vi/Shutterstock.com."][/caption]This story appears in the print edition of the Jan. 4, 2021, Journal...

Rss

ship fuel

One year ago — which seems like an eternity ago — no one in ocean shipping was talking about COVID. They were talking, ad nauseum, about fuel. About a massive spike in fuel prices due to a regulatory “tsunami” that would hammer liner companies’ 2020 financial results, inflate the cost of imported goods and steer winners and losers among shipping stocks.

It didn’t happen, courtesy of COVID. Instead, the price of marine fuel collapsed. Shipowners and cargo shippers actually saved money on fuel in 2020.

The trend this year is in the opposite direction. The price of marine fuel is coming back. And so-called “scrubbers” — equipment allowing ships to legally burn cheaper, high-sulfur fuel — are starting to pay off much more than before.

Rising marine fuel prices will mean rising costs for cargo shippers and ship operators. A higher scrubber advantage will mean more upside for the shipowners like Star Bulk (NYSE: SBLK) that installed them on a large scale. 

American Shipper interviewed Richard Joswick, head of oil pricing, refining and trade flow analytics at S&P Global Platts, to put 2021’s marine fuel and scrubber outlook into perspective.

Crude pulls up marine fuel

“The biggest driver, of course, is what’s going on with the overall level of the oil market,” Joswick explained. “The crude price is going up. That’s what’s responsible for the increase in bunker [marine] fuel prices more than anything else.”

The IMO 2020 rule mandates that ships without scrubbers cannot burn 3.5% sulfur fuel known as high sulfur fuel oil (HSFO). They must burn 0.5% sulfur fuel known as very low sulfur fuel oil (VLSFO) or 0.1% sulfur marine gasoil (MGO).

According to data from Ship & Bunker, the price of VLSFO was down to $318.50 per ton on Nov. 2, 2020. The price of HSFO (specifically IFO380 bunkers) on that date was down to $273.50/ton. The spread had shrunk to a mere $45 per ton.

Between Nov. 2 and this Thursday, the price of VLSFO increased 43%. The price of HSFO increased by 32%. The spread between the two widened by 112%, to $95.50 per ton.

fuel chart
(Chart data from Ship & Bunker. Note: Prices are average for top 20 global bunker hubs.)

How fuel price flows to shippers

During Q2 and Q3 2020, container lines lowered Bunker Adjustment Factors (BAFs) in shipper contracts to account for lower prices at the pump. As carriers saw revenues from spot deals surge, their revenues from contract deals fell due to lower BAFs.

“Shippers should begin to prepare for future BAF increases,” warned Sea-Intelligence CEO Alan Murphy in a report this week.

“The carriers’ different BAF structures mean they do not all adjust BAFs at the same time,” he continued. “Some do it monthly — usually based on the monthly average fuel price with a two-month time lag — and some do it quarterly.”

Because of the lag effect, Murphy sees the recent fuel price rise affecting monthly BAFs by March and quarterly adjustments starting in April. “BAFs stand to increase significantly for Q2 2021,” he cautioned.

Cargo shippers are already facing widespread delays and uncertainties with transit times, premium charges tacked onto previously negotiated contract rates, historically high spot pricing and expectations for substantially higher annual contract pricing. Higher BAFs this year would add insult to injury.

More scrubber installations?

When the HSFO-VLSFO spread fell below $50 per ton last year, the rationale waned for installing scrubbers that each cost $1 million-$2 million. Now that the spread is back up near $100, shipowners might be tempted to look at scrubbers yet again.

S&P Global Platts’ indices for Capesizes (dry bulk vessels with capacity of around 180,000 deadweight tons or DWT) reveal the scrubber effect on the bottom line.  

According to the Platts Cape T4 Index, on Nov. 2, the day the HSFO-VLSFO spread was down to $45 per ton, Capesizes with scrubbers saved $1,121 per day versus non-scrubber Capesizes because of their ability to consume cheaper fuel. As of Wednesday, Capesizes with scrubbers saved $2,553 per day.

Over the past 10 weeks, the profit advantage of scrubber-equipped Capesizes has jumped by $1,432 per day or 128%.

(Chart data from S&P Global Platts)

According to Joswick, “With the spread near $100 a ton, people will be asking: ‘Is that enough to add a scrubber?’ My guess is that it’s probably not enough yet to put an older ship into dry dock and install a scrubber. But it might be enough if you’re building a new ship.”

Tanker, bulker scrubber use on rise

One might have thought the COVID pandemic and the collapse of the fuel spread would have been the death knell for scrubbers. It temporarily slowed the train, but scrubbers are alive and well. In fact, scrubber interest increased over the course of 2020.

According to data from Clarksons Research, 36% of very large crude carriers (VLCCs, tankers with 200,000 DWT-plus capacity) now have scrubbers, plus another 4% due for retrofits. Of VLCC newbuilds on order, 42% will have scrubbers. Altogether, including existing and ordered ships, 40% of VLCCs are set to use scrubbers. A year ago, the percentage was 35%.

For Capesize dry bulk ships, Clarksons data shows 39% of on-the-water ships with scrubbers, plus another 2% set for retrofits. Of Capesizes on order, 63% will feature scrubbers. Including existing and new ships, 42% of Capesizes are set to have scrubbers. A year ago, the percentage was 34%.

More large box ships opt for scrubbers

The container-shipping industry offers the most acute example of scrubbers’ enduring appeal.

Alphaliner reported orders for 25 ultra-large containers ships in Q4 2020. Only five of those ships opted for liquefied natural gas. The other 20 — orders for OOCL, ONE and MSC — opted for scrubbers.

According to the Clarksons data, 65% of ultra-large container ships on the water (defined by Clarksons as having 15,000 twenty-foot equivalent units of capacity or more) now have scrubbers. Another 6% of the fleet will be retrofitted. Of newbuilds on order in this category, 68% will be scrubber-equipped. Including existing and new ships, 70% of the larger container ships are set to have scrubbers. A year ago, the number was 60%.

This trend raises the question of whether cargo shippers are paying too high a BAF. What if the BAF is based on the VLSFO price but the container ship is using a scrubber and actually burning cheaper HFO?

According to Murphy, “We might begin to see a rekindling of the discussion as to whether BAF formulas should take the scrubber-enabled vessels into account — especially in the Asia-Europe trade, where many vessels have had scrubbers installed.”

Factors affecting fuel spread

Scrubbers’ business case has improved, but not as much as it could have.

Joswick noted that today’s VLSFO price and HSFO-VLSFO spread would be higher if not for COVID restraints on air travel, which have recently intensified. “Jet fuel demand is very weak with the new lockdowns. It’s not likely to get back to normal in 2021. That’s for sure.”

Indirectly, this dynamic allows for more VLSFO supply, which puts downward pressure on pricing.

“When you lose demand for jet fuel, you can take some of the molecules that would have gone into jet fuel and put them in your diesel pool. When you do that, you now have plenty of diesel to take some of the heaviest components with higher boiling points and put those into your VLSFO,” Joswick explained.

The VLSFO price and the HSFO-VLSFO spread should increase with the recovery of air travel and demand for automotive fuels.

Meanwhile, HSFO could face downward pricing pressure in an economic recovery scenario, another plus for scrubbers.

Refinery utilization is up from its COVID nadir in Q2 2020, but it’s still low. “This is still a very difficult time for refiners,” said Joswick. “They are still running at reduced operating rates, which means they have plenty of spare capacity.” At these reduced capacity levels, refineries can economically convert HSFO into lighter products, he noted.

When refinery utilization ultimately ramps up to high levels, the refining process will create more HSFO, which will need to be converted into lighter products using more expensive means. This should put downward pressure on HSFO pricing, which would further widen the HSFO-VLSFO spread and further increase shipowner savings from scrubbers.  

2021 pricing outlook: Up

“Brent went from around $40 per barrel in October to around $55 per barrel, which translated dollar-for-dollar into the price of bunker fuel. The big question is what will Brent do next,” said Joswick.

“A number of people out there are getting bullish on the price of Brent. But if you look at the supply-demand fundamentals, they’re still soft for Q1 2021. So, there’s some downside risk right now as people are enthusiastic. Fundamentals should get stronger [after Q1 2021]. There’s likely some upside risk later in the year — assuming the vaccines work.”

The implication is that marine fuel prices will rise in 2021 and the spread could widen. “But we’re not talking about a repeat of what we saw earlier,” Joswick stressed.

In January 2020, the spread surged to $315 per ton, more than triple current levels. A Capesize with a scrubber was earning $11,800 per day more per day than a Capesize without one.

“We are not expecting anything like that anytime soon,” emphasized Joswick. Click for more FreightWaves/American Shipper articles by Greg Miller 

MORE ON SHIP FUEL AND SCRUBBERS: How IMO 2020 turned into the Y2K of shipping: see story here. Coronavirus is decimating IMO 2020 scrubber savings: see story here. Book review: ‘IMO 2020: A Regulatory Tsunami’: see story here. 

Rss

[caption caption="More than half of surveyed retailers are investing in in-store fulfillment. Photo credit: Shutterstock.com."][/caption]Facing rising delivery costs, more than half of US retailers in a recent survey say they are increasingly investing in fulfillment automation solutions and new fulfillment centers. According to a survey conducted by supply chain technology firm...

Rss

Get Into the Chrome Supply Warehouse Truck of the Month Program

In this episode we talk about Chrome Supply Warehouse’s Truck of the Month Program. Learn how you can submit your cool truck for the contest and the benefits to drivers for doing so. Each month Chrome Supply Warehouse holds their Truck of the Month Contest allowing their fans to choose the coolest truck of the month based on submissions received, get your truck into the contest. Chrome Supply Warehouse offers custom parts for trucks and many specials for truckers. You can learn more at www.chromesupplywarehouse.com

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Rss

Featured Truck of the Week 567 Stretched Peterbilt

Today’s truck is a cool 567 stretched Peterbilt brought to you by the Big Rigs Truck Show. Each week Bruce picks a cool truck from the many truck shows he attends. Hearing about them is one thing, seeing them is another. Check out this cool ride!

Check out the video on this featured truck by clicking here

This episode is sponsored by Groupe Trans West is looking for professional teams to operate out of their Mississauga terminal with excellent employment benefits between Toronto Ontario and California. Find out more at www.groupetranswest.com  or call recruiter Mike Hahn at 416-606-8296

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com

 

Rss

U.S. freight rates surged in December, setting the stage for a powerful pricing tailwind in 2021, according to a monthly index published by freight audit and payment firm Cass Information Systems Inc. (NASDAQ:CASS) and released on Thursday.

The Cass freight expenditures index jumped 13% year-on-year, according to the index, which is based on about $28 billion in annual freight payments that Cass audits. The freight expenditures subindex, which measures changes in pricing action, rose 6.8% sequentially in November on a seasonally adjusted basis, according to the index. The shipments subindex rose 1.1% sequentially on a seasonally adjusted basis.

Rates were on the rise throughout December, in line with what has been a powerful spike in noncontract, or spot, prices throughout the second half of 2020. Spot rates had started to decelerate when President Donald Trump’s signing of federal stimulus legislation on Dec. 27 caused the market to gap higher, said ACT Research, which analyzes the monthly Cass data.

The rapid increase in prices is most notable in Cass’ “implied freight rates” dataset, which divides expenditures by shipments. A positive implied rate indicates that rates are growing faster than shipments. In December, the implied rate rose 6% year-over-year, doubling the growth in November, according to the data.

On a nonseasonally adjusted basis, the shipments subindex rose in December by 6.7% year-on-year, picking up steam from the 2.7% year-on-year gain in November, according to the data. Based on a two-year “stacked” basis, which averages out the monthly activity for the period, the subindex is 1.8% lower than in December 2018, said Tim Denoyer, ACT’s lead research analyst and the report’s author.

Cass combines data from truckload — which accounts for half of the indexes — railroad, less-than-truckload (LTL) and parcel, among other modes.

The current upcycle, which began in the May-June period, “still has several powerful growth tailwinds” following a two-year freight downturn, Denoyer said. The recent injection of around $900 billion in stimulus, along with the prospects for more federal aid with Democrats soon to be in control of the executive and legislative branches, will boost GDP growth and, by extension, freight volumes and pricing, he said.

ACT recently raised its 2021 GDP growth forecast to 5.1%, following a 3.7% contraction in 2020.

With the expenditures subindex hitting record highs, the “transition from an early-cycle environment to mid-cycle environment is underway,” Denoyer wrote. The headline of the ACT report seemed apropos under the circumstances: “All gas. No brakes.”

The improvement in the shipments subindex can be tied to improving trends in the rail sector, especially in intermodal where volumes had a very strong finish to the year, ACT said. The volume gains are expected to carry over into 2021 as U.S. retailers push to replenish depleted inventory stocks and containership lines reduce their number of “blank” (or canceled) sailings ahead of the Lunar New Year, which runs Feb. 12-26 and when virtually all Chinese factories close and workers scatter to their respective home cities and provinces, Denoyer said.

Cass’ Truckload Linehaul Index, which measures shifts in per-mile rates independent of fuel and add-on charges known as “accessorials,” rose 1.1% in December on a year-on-year basis. This followed a 0.6% gain in November, the first year-over-year increase in 15 months. However, truckload rates are quickly firming as evidenced by the 6% implied rate increase in December, ACT said.

Rss

[caption caption="US truck shippers doubled their spot market usage from approximately 20 percent of shipments historically to 40 percent in December, according to data from transportation consultant Breakthrough. Photo credit: Shutterstock.com."][/caption]US surface transportation shippers doubled their dependence on securing capacity via the spot market in December largely due to demand...

Rss

A startup Midwestern furniture retailer has filed for Chapter 11 bankruptcy protection less than a year after it began hiring management staff, and it is mostly blaming Penske Logistics for the company’s collapse.

While Pennsylvania-based Penske Logistics isn’t the largest creditor of the company — it’s fifth on the list of the largest 20 unsecured creditors — it is the company that Loves appears to fault for its collapse, though a reading of the bankruptcy petition reveals other issues the company had in its short life.

It also reveals how a startup retailer ran into a problem that many other people looking for floor space can sympathize with: a tight market for warehouses to put their merchandise.

The case was filed earlier this month in the U.S. Bankruptcy Court for the Eastern District of Michigan. A spokesman for Penske said the company already had filed suit against Loves in Oakland County Circuit Court in Michigan but that it had no further comment on the allegations against it in the Loves bankruptcy filing. FreightWaves was unable to obtain the Penske filing by publication time. 

The details of the difficulties of Loves and the strained relationship between the retailer and Penske Logistics are contained primarily in an appendix to a filing made by Mack Peters, who describes himself as a “major shareholder” of MP Furniture, a furniture retailing consulting firm. He also brokers deals between furniture manufacturers and retailers. Peters was hired by Loves to make his submission.

The Peters review of the short life of Loves Furniture says a company called US Assets, which is 94% owned by Jeff Love, established the Loves Furniture retailer by setting up shop primarily in spaces abandoned by Art Van, a shuttered furniture retailer. “Loves was created at the kitchen tables of its first employees,” the Peters filing says.

The bankruptcy documents recap how Loves obtained financing and moved into former Art Van outlets, many of which are described as being in less than stellar condition. It went into business in a big way, ordering furniture from 81 different manufacturers at a “landed cost” of about $60 million, receiving about $38 million of that inventory. “The rest was either canceled by the manufacturer due to non-payment or sold to another retailer,” the Peters filing says.

Things went well in the beginning but inventory problems resulted in “frustrated customers cancel[ing] orders” and poor reviews on social media. This was not all because of Penske; Peters describes Loves inventory and logistics system as “defective” and “staggeringly expensive.”

Loves has paid about $8.3 million to Penske with about $1.8 million listed as the outstanding debt in the list of top creditors. But Loves stopped paying at the end of December because of a cash crunch and Penske severed all ties and stopped making deliveries. The Penske suit was filed Jan. 6.

The warehouse squeeze can be seen in Peters saying Loves though it had space lined up, lost it to somebody else and didn’t actually have its own warehouse space until Oct. 1. But it continued to grow; it opened up its final new store as recently as Dec. 19, less than a month ago. 

With inadequate space to store its own merchandise, “Loves sought a vendor to manage its warehouse and to provide cartage services for goods moving from the warehouse to the stores,” the Peters filing said. It chose Penske Logistics and the relationship started in July.

The lawsuit says the first problem is that Penske Logistics “insisted” on using its own warehouse management system rather than Storis, a software system used in the furniture industry. Penske also leased space for Loves at a warehouse in Burton, Michigan, which, the lawsuit says “quickly became clear … was not large enough to hold all of Loves incoming orders.” Loves contracted with a company called Evans Distribution Systems for additional space at an Evans warehouse in Michigan. 

The heart of the dispute, laid out after that introduction to the point where Loves started operating, are some of the charges which a Penske Logistics spokesman said the company “strongly refutes” before saying it could not comment further. 

The lawsuit says Evans was able to take in orders and move inventory out to the Loves stores.  “Although Evans had no issues in doing so, Penske had trouble identifying goods and sent goods to the wrong stores so that one store would get two of everything and another store received no goods,” the lawsuit said. The merchandise would then be returned to the warehouse, put back into inventory and then sent out to the correct store, Peters said, slowing the delivery process. 

Half-filled trucks were sent out at times, according to Peters. There was no coordination between the Penske Logistics system for the Burton facility and the Evans facility. “As a result hundreds of deliveries were delayed or ultimately canceled because the merchandise needed to fulfill a customer’s order could not be located within the Burton warehouse,” Peters writes.

As a result of this confusion, “sales fell significantly in light of Loves’ difficulty locating, obtaining and delivering merchandise to its customers,” Peters writes. 

One online headline from a Michigan TV station, in the heart of Loves’ service area, said that “customers of Loves Furniture report lengthy delivery delays,” while another asked, “Will Loves Furniture’s brief story end in heartbreak?”

Peter said sales of the chain in four months totaled about $40 million.

More articles by John Kingston

Drilling Deep: Change in bankruptcy law may save some trucking companies

Chapter 7 death knell for smaller companies now has shortcut to Chapter 11 survival

Rand McNally, despite reports, is profitable and thriving: company chairman

Rss

Driver Pride with Rosedale Transport

Bruce chats with Giovani a driver with Rosedale Transport about his start in trucking and what it takes to be a professional driver on the road today. Find out what it’s like to drive with Rosedale and be part of this professional community. Rosedale Transport offers career opportunities for truck drivers with their large network. You can learn more at www.rosedalegroup.com

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Reddit

Same gig, new rig

Reddit

Seeing things like this makes me thankful for my pup trailer lol

Rss

[caption caption="Reverse logistics costs can amount to up to 59 percent of the original sales price of an item. Photo credit: Shutterstock.com."][/caption]With US holiday returns forecast to hit record levels this season, parcel providers and shippers are creating new spots to pick up and drop off returns, and in the...

Rss

A new year means new changes for minimum wage laws throughout the United States. From state to state, employers are facing updates to minimum wage increases that may affect their employee base. In California, where more than 137,000 trucking companies (most of them small) operate, trucking companies are following their own changes that took effect on January 1st that impact both nonexempt and exempt employees.

California’s statewide minimum wage is now $14 per hour for employers with 26 or more employees and $13 per hour for employers with 25 or fewer employees. But some local ordinances have a higher minimum wage than the state law, and some local regulations eliminate any distinction in minimum wage based on employer size. This moves the state and the companies inside it one step closer to its goal of a $15 per hour minimum wage.

In addition to California’s statewide minimum wage increases, many cities and counties have enacted their minimum wage laws that go beyond state requirements. If a local minimum wage rate is more substantial to employees than the state-mandated minimum wage rate, employers must comply with local law.

Local, State, and Federal Minimum Wage Differences

Most employers in California comply with both the federal and state minimum wage ordinances. Also, local cities and counties are allowed to enact minimum wage rates. Many different cities have recently adopted laws that establish a higher minimum wage rate for employees working within their local areas.

The effect of this coverage by various government sources is that when there are conflicting requirements in the mandates, the employer has to follow the stricter standard, or most beneficial to the employee. Since California’s current ordinance requires a more significant minimum wage rate than the federal law, all employers in the state subject to both laws have to pay the state’s minimum wage rate unless their employees are exempt under state law.

Similarly, suppose a local entity, such as a county or city, has adopted a higher minimum wage. In that case, employees have to earn the local wage where it is higher than the state or federal minimum wage levels.

So, What Does This Mean for the Trucking Industry?

Some 25,000 truck drivers haul goods from Los Angeles and Long Beach’s shipping ports to nearby storehouses and rail years. From there, the goods are moved to U.S. retailers and manufacturers. Since 2011, nearly 1,000 drivers in California have been filing complaints against trucking companies for workplace violations, including wage disputes.

Issues like these and other workplace violations all impact a company’s Trucking insurance rates. Trucking companies need to ensure they are doing what they must to stay compliant with minimum wage increases, insurance needs, workers’ compensation, and more. While truckers make more than the minimum wage, there are other part-time employees within a trucking company who might not make the minimum wage, but by law will have to begin now.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck, and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

The post Minimum Wage Increases on January 1st, 2021 appeared first on Western Truck Insurance Services.

Rss

hauling livestock

If you are a truck driver looking for a new haul, think about carrying livestock. This is a specialty niche for people with a lot of patience who don’t mind the good, the bad, and the smelly of working with live animals. If you have experience on a farm or ranch and are considering trucking, hauling livestock could be a great fit. Hauling livestock has many similarities to other types of trucking, but there are also some big differences based on the type of freight. So, before you get started, here are a few things to keep in mind.

1. Types of Livestock Drivers Haul

When many people think of hauling livestock, there’s a good chance that they think of cows or chickens. Cattle do make up the largest part of the livestock transportation industry, but livestock haulers can carry anything that is live freight. Some common loads are pigs, goats, sheep, and even bees. Some livestock haulers train to carry high-value livestock such as show horses. Drivers are working closely with the animals. So, it’s common to see drivers with experience on a ranch or who have spent plenty of time in the livestock industry.

Animal care is a huge part of transporting livestock, and drivers take their jobs very seriously. Patience and attention to detail are huge for livestock haulers. As anyone who works with animals knows, getting frustrated with them rarely makes things go faster. It will only stress the livestock. Livestock drivers also need to be patient behind the wheel and drive defensively. Harsh stops or turns can easily injure or stress livestock. Regulations for carrying livestock vary somewhat by state. So, drivers must be detail-oriented to ensure compliance for every load. 

2. A Whole New World of “Touch Freight” and Cleanup

Hauling livestock is unlike any other type of freight for a lot of reasons. One of the big ones? Well, let’s just say that sanitation is incredibly important, and cleaning out a livestock trailer is a little different than cleaning out your trailer after a dry van or reefer load. Drivers must completely sanitize trailers after every load or they could infect the livestock in their next load. 

Dustin Nesbitt hauling livestock

Dustin, livestock hauler for Nesbitt Transportation

We talked to Dustin, a cattle hauler and co-owner of Nesbitt Transportation, and asked him if he had any advice for drivers considering hauling livestock. He shared this:

“Someone who is going into hauling cattle needs to be patient. It’s not like driving freight. You need to give yourself extra time around other vehicles because it actually takes longer to stop because it’s a live load. Also need to be patient with the animals and have your head on a swivelalways protect yourself. Cattle’s attitudes can change in a split second and go from cooperating to they want to kill you so always keep your eyes on the animals when loading and unloading.” 

Agfax adds several additional tips for transporting cattle. According to their website, a thorough pre-trip inspection is even more important for livestock haulers. Delays for maintenance or repairs can cause extra stress on the animals, especially if there are heat or chill concerns. Agfax also recommends that drivers master livestock sorting. Within any type of livestock haul, drivers should transport similar animals together. For example, large cows should be transported with other large cows, not cows that are small or weak.

3. Livestock Truck Drivers Earn More

loading livestock

While livestock haulers often have to meet specific requirements beyond a typical CDL driver, they are also well compensated for their work. Livestock haulers are typically considered specialty hauler, so pay is increased. That said, these drivers earn higher pay for good reason!

Livestock haulers must maintain additional certifications that show their understanding of the risks of hauling live animals. In addition, owner operators will need to purchase specific equipment. The type of trailer that drivers need depends on the type of animals and the distance of the haul. No matter the exact specialty, that equipment is not cheap.

In addition to the cost of equipment, livestock hauling takes time and doesn’t allow for shortcuts. For example, biosecurity is ultimately the truck driver’s responsibility, and each buyer or seller may have their own protocols. Sanitation includes disinfecting the trailer but also guarding against cross-contamination from the driver. Livestock haulers must maintain sanitary practices when moving between locations or loading and unloading livestock so they don’t transmit infection. This might seem like too much hassle for some drivers, but for livestock haulers, it’s all part of a day’s work.

cattle hauler

Find a Livestock Truck Driver Job

We match you with a job based on your professional qualifications and personal lifestyle preferences. Create a free driver profile with Drive My Way to receive your job matches.

Find a Job Today

The post Hauling Livestock: 3 Things to Know appeared first on Drive My Way.

Rss

Cognitive Testing with DriverCheck

Have you ever wondered how cognitive testing can help your team? We talk with the team at DriverCheck about cognitive testing and how it helps improve safety in the workplace. DriverCheck is a leader in drug and alcohol, cognitive, and workplace testing helping employers have a safe workplace for their staff. Learn how DriverCheck can help you be safe at www.drivercheck.ca

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com

Reddit

Sometimes they have to pull you out...

Reddit

I know I’ve seen this guy catch some flack before, but wow.

Rss

Welcome to the WHAT THE TRUCK?!? newsletter. Here we’ll get you caught up on all things WHAT THE TRUCK?!? and bring you up to date on the world of freight as we see it. Like the newsletter? Forward it to a friend. Enjoy! — Dooner

2021 best fleets to drive for

Warner Bros/DC

Return to sender — 2021 and the word “best” may be strange bedfellows in light of the absolute mess this year has been so far, but that doesn’t mean you can’t improve your circumstances (or celebrate them if you work for one of these carriers). 

You’ve made the list — The TCA and CarriersEdge have named 20 carriers to their 2021 Best Fleets To Drive For list. With capacity tight at just under 1 in 4 contracted loads being rejected, combined with a shortfall of half a million jobs in the sector, now may be a great time to jump in a new truck with one of these top fleets.

“Even in the midst of a pandemic these fleets are focused on creating a great workplace experience for all their drivers, and with an average satisfaction rate over 90% their drivers clearly appreciate those efforts.” — CarriersEdge CEO Jane Jazrawy

Who’s on it — Four new carriers have made the cut this year along with 16 incumbents from last year’s list.

Decade of dominance  Grand Island Express has made the list for 10 consecutive years!

More on FreightWaves Radio This Saturday 3-5 p.m. ET on FreightWaves Radio on SiriusXM’s Roaddog Trucking Channel 146 I’ll catch up with CarriersEdge CEO Jane Jazrawy to break down the list.

Keep the return, you filthy animal

Warner Bros/DC

Record ecommerce = record returns — Remember that 75-day peak season we talked about? It blew away the 2.4% increase in sales that analysts were projecting as total retail sales grew 3%, according to Mastercard SpendingPulse. UPS Inc. said last Thursday that it expected returns traffic to rise 23% by the end of last week. That amounts to 1.75 million returns each weekday. 

Just keep it — Returns are the freight that nobody wants including retailers themselves. At a cost of $10-$20 per item (not including freight), online stores are telling shoppers to keep their returns if they don’t make equitable sense to their cost algorithms. 

The true cost — Each year Americans return about 3.5 billion products, and 5 billion pounds of returned goods end up in U.S. landfills, according to Optoro. However, this is a problem that will only get worse as returns in 2020 were 70% higher year-over-year, according to Narvar.

Online order returns comprise 75% of the total returns” — Locus Robotics CEO Rick Faulk

Consumers demand it — 73% of shoppers surveyed said the overall returns experience impacts their likelihood to purchase from a retailer again, a UPS study found.

The circular economy — On our Jan. 22 episode of WTT?!? we’ll talk to Claudia Freed, CEO of EALgreen, about how donations and other methods can help mitigate the impact of returns.

Over the edge … almost

Close call — Traffic was blocked for hours in DeKalb County, Georgia, after a truck struck a chain-link fence, causing it to hang precariously over eastbound Highway 78. Traffic crews uprighted the truck. Fortunately, there were no injuries to report.

Straight for the feels

Lollypop Farms

Lost at the rest stop Over the course of my family road trip between Chattanooga and Boston, we had to take our cat out of its carrier in order to clean up a mess it had made. My No. 1 fear at the time is something one lone trucker recently experienced. A driver, known only as Matthew, lost his feline companion, Ashes, at a truck stop in Ohio after it ran into the woods. 

The search Matthew searched all over for Ashes but was forced to abandon the cat there after he didn’t turn up. Heartbroken, the trucker rearranged his routing to search the truck stop over the next few months.

‘A Christmas miracle’ Half a year later a woman driving through the area on a cross-country road trip saw a shivering and malnourished cat at a rest stop trying to survive in 13 degree weather. The good Samaritan wrapped the cat in a blanket, and it rode all the way to Rochester, New York, before being dropped off at the Lollypop Farms animal shelter. The shelter scanned the cat’s microchip to learn its true identity. It was Ashes! One phone call later and Matthew and his cat were reunited. 

“It’s that microchip. Without it, I wouldn’t have ever gotten him back,” the trucker said.

Away, away, away As Laurie Berkner once crooned, the cat came back, we thought he was a goner. But the cat came back; it just couldn’t stay away.

WTT?!? Wednesdays

Three days a week— WTT?!? is now LIVE Mondays, Wednesdays and Fridays at 12 p.m. ET on FreightWaves.com, FreightWavesTV, FreightWaves LinkedIn and Facebook and on demand on podcast players everywhere. 

Launch show — The Dude and I have booked a star-studded lineup for our launch show Wednesday.

Steve Case, chairman and CEO, Revolution LLC — Case has done it all, from being the godfather of social media as AOL CEO/chairman in the ’90s to his work investing in early and growth-stage startups as chairman and CEO of Revolution LLC. As social media entered a new inflection point over the weekend, we’ll ask Steve about what direction he thinks communication is heading. Plus, the rise of startups based outside Palo Alto.
  
Thomas Healy, CEO, Hyliion — Healy is creating electrified powertrains designed to reduce emissions and lower fuel costs. When the company first went public last year, he was America’s youngest billionaire. Hear what Hyliion has planned for 2021.

Mark Wiese, manager of Deep Space Logistics, NASA — What will deep space logistics look like in 2021 and beyond? Wiese shares with us NASA’s goals for space commercialization and how such lofty aspirations have incredibly down-to-Earth uses.  

George Abernathy, president, FreightWaves — Our proud president joins us to talk about FreightWaves’ goals for 2021 and he’ll shed insight on how he thinks this year will play out inside and outside of Freight Alley.

Catch new shows live at noon ET Mondays, Fridays and Wednesdays on FreightWavesTV, FreightWaves LinkedIn and Facebook or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player.

Tales from the dark side of trucking

New audio podcast — Last week FreightCasts launched its newest addition to our podcast lineup, Long-Haul Crime Log. The show covers crime in trucking and supply chain. Take a trip into the seedy underbelly of the world of freight with journalists Clarissa Hawes, Nate Tabak and Noi Mahoney.

Wednesday — On the next Long-Haul Crime Log is the chilling story of the Turnpike Phantom, a killer who preyed on sleeping truckers in the summer of 1953. Plus, why an unsolved driver killing continues to haunt co-host Clarissa Hawes.

Power of podcasting — Expect a whole host of new shows on FreightCasts in 2021. Here’s a few amazing podcasting facts from a new SimpleCast report that says podcasts flourished with:

  • 51% increase in available inventory from active listeners.
  • 53% increase in new podcasts.
  • 81% increase in podcast ad impressions at different points throughout the year.

Subscribe to FreightCasts on Apple Podcasts, Spotify or wherever you get your podcasts and never miss a single FreightWaves show.

Now on demand

#EnteringTheTank

“If you want to be a really successful entrepreneur, you need to get into supply chain and logistics.” — Matt Walsh, founder of TrophySmack, on “Shark Tank” right before landing a deal with Mark Cuban. We caught up with him on WTT?!? on Monday. See how he reacted here

Tweet @ Dooner

Subscribe to the newsletter

Subscribe to the show

Apple Podcasts

Spotify

Or simply look up WHAT THE TRUCK?!? on your favorite podcast player. 

All FreightWaves podcasts can also be found on one feed by looking up FreightCasts wherever you get your podcasts. 

Want a new WHAT THE TRUCK?!? shirt? Check out the swag store.

One love,

Dooner

Rss

Does the Style of Driver You Are Determine Your Career Path?

Does the type of driver you are determine your career path? Drivers may not think about it very much but carriers sure do. Carriers know which drivers they can rely on, which ones are the safest in the fleet, and which drivers can cause problems. Knowing which driver style you are may determine the types of projects you receive, the money you make. And maybe even your career path. We talk about in this episode of the podcast.

This episode is also sponsored by Ontario Truck Driving School has a number of courses to help you be successful when starting a career in transportation from heavy equipment to over the road trucking. You can learn more about starting your career at www.otds.com

This episode is sponsored by Bison Transport with many opportunities for truck drivers in their fleet across Canada. You can learn more about Bison and the opportunities available http://fuelyourjourney.ca/  or call 1-800-527-5781 #fuelyourjourney @BisonTransport

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Rss

Lineage Logistics LLC, an industrial REIT and logistics solutions provider in the temperature-controlled segment, said Tuesday it has partnered with logistics software provider Turvo to launch Lineage Link, a platform that will connect the Lineage global network and all participants.

Novi, Michigan-based Lineage said it will deploy Turvo’s technology in more than 200 facilities during 2021. Eventually, it will connect most of Lineage’s global network of 330 facilities in 15 countries.

The platform is designed to give customers complete visibility across locations, orders, inventories, transportation and warehouse appointment scheduling, Lineage said. The partnership with Turvo “provides our customers with a transformative logistics solution to engage, manage and optimize their end-to-end supply chain,” said Sudarsan Thattai, Lineage’s chief information officer, in a statement announcing the alliance. 

Thattai said the platform will help Lineage to “transform the food supply chain” by extending process automation to foster deeper collaboration and visibility.

“We are working with Lineage to eliminate barriers in the supply chain created by antiquated, siloed technology,” said Scott Lang, Turvo’s chairman and CEO.

Rss

garbage truck driver

Garbage truck driver jobs can be a great fit for new drivers and experienced drivers alike. These jobs are typically local, so drivers get regular home time. They’re also great for drivers who like to stay on the move throughout their day. Garbage truck jobs often require some physical labor. As with many trucking jobs, it can be easy to find a garbage truck driving job, but hard to find a good one. Here’s what you need to know to find the best garbage truck driver jobs.

1. Know the Lingo

  • Residential: Residential garbage truck drivers are the ones you see in your neighborhood if you live in an urban area. These drivers are responsible for picking up cans from individual residences. 
  • Commercial: These drivers are the opposite of Residential garbage truck drivers. Commercial drivers pick up waste from businesses or apartment complexes. 

2. A Day in the Life

Garbage truck driver jobs can be quite different from other CDL jobs. Most of these positions are local, so drivers will stay within a relatively close radius. Typically, drivers are home nightly. That said, hours are not always consistent, so a garbage truck driver may find that their schedule does change at times. Another important thing to decide before you take a new job is what level of touch you prefer. Most garbage truck driver jobs call for a high level of touch, and there is usually manual labor required. If you like to be active, this job will keep you moving!

trashguyninja

Kevin, Garbage Truck Driver for EZ Pack

We talked to Kevin, a garbage truck driver for EZ Pack, and asked him if he had any suggestions for other drivers looking for a garbage truck driver job. He shared his perspective with Drive My Way.

“Well I guess everyone is always looking for a good driver with a clean CDL. So if you have those key ingredients you’re bound for success anywhere. Good perks and benefits if you find the right place, they’re out there, if you’re willing to work for it,” shared Kevin.

Commercial garbage truck drivers usually work in urban environments, so if city driving isn’t for you, think twice about this job! Similarly, many garbage truck driver jobs are for residential positions. That means that drivers need to be comfortable maneuvering in tight streets. In addition, because there are a lot of jobs in residential areas, some drivers may have a higher level of interpersonal engagement than in other local positions. 

3. How are Dump Truck Jobs Different?

If you are taking a job as a dump truck driver early in your CDL career, there are a few things to consider. This type of job can be a great way to get started in trucking, BUT you should know that not all employers consider this type of work good experience for other CDL jobs. Also, if you find yourself thinking that garbage truck driver jobs are an easy way to get started in trucking, that’s not necessarily the case! These trucks have a higher center of gravity than many other types of trucks, so it takes skill and experience to avoid incidents. Dump trucks are often considered more dangerous than other types of CDL work.

4. How To Become A Garbage Truck Driver

Once you’ve decided that this is the job for you, there are a few things you’ll need to get started. First, get your CDL A or B license. Some companies will accept either, and deciding between the two licenses will depend a lot on your plans for the future. If you want to drive dry van, tanker, reefer, or other similar jobs, a CDL A is more flexible. Some employers also value mechanical experience. While it may not be the main part of your job, a driver who can fix machines can be valuable. 

If you want to drive dry van, tanker, reefer, or other similar jobs, a CDL A is more flexible.

In addition to the technical requirements, there are some personal attributes that are helpful for garbage truck driver jobs. Often, driving a garbage truck requires a high level of physical fitness, so it’s helpful to be in good physical condition so you don’t strain or injure yourself. Also, it’s important that you like to be outside and are willing to work in different weather conditions. When you’re ready to make your next job change, check out Drive My Way to find companies hiring near you who are a good fit for your lifestyle and job preferences.

5. What Questions Should I Ask Employers?

truck driver holding steering wheelAny time you prepare for a CDL job change, there are a few important questions to ask. These questions will help you find the best garbage truck driver jobs for you at a reliable company. Before you even talk to the company, do your research on compensation, hours, and benefits.

If a company meets your needs, get in touch. Otherwise, stay away and move on to the next company. If possible, ask to speak with a current company driver to get their perspective. 

For garbage truck jobs, ask a recruiter about your route. Then, find out whether you will be working with a partner or solo. Equipment also plays a particularly big role for garbage truck drivers. Older truck models may not have the same grabbing hooks and may require more manual labor than newer models. Similarly, what level of touch can you expect? As you finish your conversation, make sure to ask about opportunities for advancement. You may not be looking for a career move right now, but you may be looking for a promotion in the future.

garbage truck driver

Find a Garbage Truck Driver Job

We match you with a job based on your professional qualifications and personal lifestyle preferences. Create a free driver profile with Drive My Way to receive your job matches.

Find a Job Today

The post 5 Tips for Finding the Best Garbage Truck Driver Jobs appeared first on Drive My Way.

Rss

 A new Kenworth video (https://youtu.be/02eiIy_l6XA) features the zero emissions Kenworth T680 fuel cell electric vehicle (FCEV) on the road to the

The post Kenworth Video Stars Zero Emissions Kenworth T680 FCEV on the Climb to 14,115-Foot Pikes Peak Summit appeared first on NextTruck Blog & Industry News - Trucker Information.

Rss

Drivers, carriers and medical review officers (MROs) could be fined up to $5,833 for each violation of any provisions within the Drug & Alcohol Clearinghouse, according to the latest directive from the U.S. Department of Transportation (DOT).

DOT issued a final rule on Monday that implements the authority of the Federal Motor Carrier Safety Administration (FMCSA) to assess civil penalties for violations of the Clearinghouse, at 49 CFR part 382 subpart G of the code of federal regulations.

“Any employer, employee, medical review officer, or service agent who violates any provision of 49 CFR part 382, subpart G … is subject to a civil penalty not to exceed $5,833,” the rule states.

That amount is more than double the $2,500 per violation that was outlined in much of the guidance issued by nongovernment entities in both the lead-up and implementation of the Clearinghouse over the past two years.

A DOT official explained that $2,500 was set for violations pertaining to commercial driver’s licenses in a statute established more than 30 years ago. “The statutory amount hasn’t changed since 1986, but in another statute, Congress requires the [FMCSA] to pass a regulation every year to update that amount for inflation,” the official told FreightWaves.

The official noted that while FMCSA’s Clearinghouse did not exist when the statute was established, the current fine for clearinghouse provision violations “reflect an inflation increase that started at $2,500 in 1986 and had been subject to several inflationary adjustments prior to 2015. Since 2015, it has been adjusted every year.”

One example of a violation of a Clearinghouse provision would be an employer accessing a driver’s record from the database without getting the proper written or electronic consent from the driver.

As of Dec. 1, 162,485 employers, 1,599 MROs and 9,048 consortium/third-party administrators had registered with the Clearinghouse, according to the most recent data from FMCSA.

Also included in the updated penalties:

  • A Commercial Driver’s License (CDL) holder who is convicted of violating an out-of-service order is subject to a civil penalty of at least $3,230 for a first conviction and at least $6,460 for a second or subsequent conviction.
  • An employer of a CDL holder who knowingly allows or requires an employee to operate a commercial motor vehicle during any period in which the CDL holder is subject to an out-of-service order is subject to a civil penalty of $5,833 to $32,297.

Related articles:

Click for more FreightWaves articles by John Gallagher.

Rss

A Mexico-based driver involved in a multivehicle crash in Georgia has been prohibited from operating commercial trucks in the U.S. by the Federal Motor Carrier Safety Administration (FMCSA). 

Commercial driver Mario Alberto Leal-Salas was deemed an imminent hazard to public safety and prohibited from operating any commercial motor vehicle in the U.S., according to an FMCSA release.

FMCSA’s imminent hazard out-of-service order states that Leal-Salas’ “blatant and egregious violations of the federal safety regulations and ongoing and repeated disregard for the safety of the motoring public substantially increases the likelihood of serious injury or death to you and the motoring public.”

The crash occurred Nov. 16. Leal-Salas, who holds a U.S.-accepted Mexican commercial driver’s license (CDL) was operating a commercial truck on State Route 96 in Taylor County, Georgia, when he failed to stop for a red light at the intersection of State Route 3. 

Leal-Salas’ truck caused “a multi-vehicle, chain-reaction crash and fire,” according to the FMCSA. Three people, including Leal-Salas, suffered severe injuries. Leal-Salas was employed by Laredo, Texas-based W Freight Services LLC at the time.

A subsequent FMCSA investigation found that approximately three weeks prior to the crash, Leal-Salas, who was then under consideration for employment by a different trucking company, had tested positive for a cocaine metabolite, benzoylecgonine, during a mandatory pre-employment drug and alcohol screening.

“Any driver who fails any drug and alcohol test, or refuses to submit to testing, is immediately prohibited from operating a commercial motor vehicle, with that information recorded in FMCSA’s Drug and Alcohol Clearinghouse — Leal-Salas’ drug test failure included,” according to the FMCSA.  

FMCSA investigators also discovered that two weeks following the crash in Georgia, around Dec. 4, and again on Dec. 17, although prohibited, Leal-Salas continued to operate a commercial vehicle. The investigation revealed multiple instances of Leal-Salas exceeding federal hours-of-service limitations as well.

Leal-Salas was served the FMCSA order in Mexico with the assistance of the Mexican government on Jan. 2.

Click for more FreightWaves articles by Noi Mahoney.

More articles by Noi Mahoney

China remains top US trade partner, Mexico No. 2

Volvo Trucks’ Mexican exit raises concerns for carriers

Texas border bridge expansion gets presidential permit

Rss

Peterbilt Motors Company is excited to announce that the Model 579EV is the first zero-emission, battery-electric, Class 8 truck to

The post PETERBILT MODEL 579EV CONQUERS PIKES PEAK appeared first on NextTruck Blog & Industry News - Trucker Information.

Rss

Carrin Cabral Fueling Her Journey with Bison Transport

Driver Carrin Cabral of Bison Transport talks with Bruce about her career on the road with Bison and working with one of the safest carriers in Canada. Bison Transport has many opportunities for truck drivers in their fleet across Canada. You can learn more about Bison and the opportunities available http://fuelyourjourney.ca/  or call 1-800-527-5781 #fuelyourjourney @BisonTransport

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com

Rss

Mike McAllister, an award-winning journalist with extensive editorial experience at major media outlets, has joined FreightWaves as editor in chief. McAllister will head the day-to-day operations of the editorial team, which includes over 20 journalists publishing more than 30 articles a day in the areas of global logistics, transportation and supply chain.                    

Craig Fuller, founder and CEO of FreightWaves, said, “I am excited to have Mike join the leadership team. His background in online media publications will further drive FreightWaves.com’s growth as the No. 1 news source for the freight industry.”

For the past 12 years, McAllister was the managing editor at PGATOUR.com, the official website for golf’s leading professional men’s tour. In that role, McAllister supervised a team of digital writers and editor-producers while also collaborating with multiple internal stakeholders. In addition, he generated original written content, with 15 of his stories receiving various honors — including three first-place awards — in the Golf Writers Association of America annual writing contest.

Prior to joining the PGA Tour, McAllister was a senior editor at ESPN.com and previously held a similar role at Sports Illustrated’s website, SI.com. He also worked in a variety of sports writing and editing positions at media outlets in Texas, including The Dallas Morning News and the Austin American-Statesman. 

“Having spent my career in sports, I welcome the unique challenge of stepping into another industry, one that touches all of our lives,” McAllister said. “This is an extremely exciting opportunity to join a terrific editorial staff at the world’s top source for logistics, freight and transportation news. I look forward to being part of the growing team at FreightWaves and getting to know others inside the industry.”

FreightWaves is the largest provider of market news, research and data for the $9.6 trillion global logistics industry. The global leader in audience size, FreightWaves.com delivers breaking news, analysis, content and opinion for all transportation and logistics modes. Moreover, FreightWaves offers a multimedia platform, including more than a dozen podcasts (under the FreightCasts banner), and FreightWaves TV, the only daily streaming TV network dedicated to freight, with a daily viewership of over 25,000. 

In 2020, the company produced 12 virtual events that generated massive audiences and spawned Firecrown Media, a new FreightWaves division that produces content not only for FreightWaves but other companies as well. The plan for 2021 is to surpass the records set in 2020. 

FreightWaves Passport is the company’s subscription research/analysis service that covers the transportation and logistics industries. Passport delivers logistics research, analysis and commentary that drive meaningful business decisions — and results.

FreightWaves SONAR is the industry’s most comprehensive freight data forecasting platform, providing unparalleled insights and forecasts. This software-as-a-service subscription helps transportation providers benchmark, analyze, monitor and forecast spot rates, capacity, demand and costs across their businesses.  

SONAR is the only freight forecasting and analytics platform that offers real-time freight market intelligence driven off actual freight contract tenders. It combines contract tender data with spot rate data to create predictive freight rates. It creates the most current freight activity and logistics rate indices in the market. Plus, to help subscribers focus attention on the most important decisions, SONAR breaks down freight data based on geography, mode or freight market share.

Rss

Commercial truckers always operate with an element of risk in their daily routes. Whether it’s a quick load drop-off or a cross-country trip, the liabilities related to costly accidents and injuries are still the same. In fact, every 15 minutes, a person is killed or seriously injured in an accident caused by trucks, accumulating to more than 500,000 trucking accidents annually.

When these events happen, trucking insurance claims are made. This can highly impact the rates they pay. Fortunately, there are ways that truckers and the companies they work for can avoid hefty insurance claims, including general liability, workers’ compensation, and more.

Read below to get helpful information on how to limit the potential for large trucking insurance claims.

Controlling Insurance Rates

To keep policy prices relatively low, truckers, and the companies they contract for should demonstrate that a safety program is in place. From driver training to a drug-free workplace to return-to-work programs, truckers can reduce claims in the long term and show their insurer that they are proactive in making accountability and safety priorities. This can help reduce the frequency of trucking claims, no matter how big or small, and help keep future costs down.

 Monitor Your Insurance Policy

By keeping an eye on what’s happening with insurance policies and rates, trucking companies take care of their fleets, drivers, and bottom line. In the last decade, the average cost per mile for coverage has risen by about 30 cents, a surge that is important to be aware of when shopping for or renewing an insurance policy. Knowing what’s happening in the marketplace can help fleets stay on top of their expectations and coverage limits.

Reducing Workers’ Compensation Claims and Costs

Trucking companies can be proactive with their drivers by starting new drivers out with orientation. This can include a more experienced driver riding with them for the first few days on short hauls. This might be more expensive in the short term, having two drivers in the same cab, but over time will be more cost-effective as this helps new drivers get insight and perspective.

Having a drug-free workplace can also reduce claims and eschew rising rates. Aside from marijuana and alcohol, truck drivers have been having issues with more recreational drug use, including opioids and cocaine, which some use to stay awake and alert. Because drivers are always sitting and lifting heavy objects, back injuries are common among drivers, and those drivers might need to take prescription drugs to treat injuries. This only increases the risk of incidents. Having a drug-free expectation creates awareness and protection for the trucking company and the driver and others on the road around them.

Promoting Safety, Reducing Liabilities

Simple safety measures should be in place to help limit the potential for accidents and hefty insurance claims to occur. Driving the speed limit, especially on unfamiliar or unsafe roads, can keep drivers and their trucks safe. Drivers should also keep distractions away, including texting, talking, videos, or eating. If an accident involves distracted driving, there won’t be much you can do to plead innocence.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck, and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

The post How Truckers Can Avoid Hefty Insurance Claims appeared first on Western Truck Insurance Services.

Rss

Modern Transportation Services

Today’s Job of the Day comes from Modern Transportation

For over 30 years, Modern Transportation has been a leader in dry bulk & liquid chemical material logistics & trucking. We operate two dozen terminals covering more than 30 states. We’re not looking for just any truck driver with a CDL; we’re seeking professional truck drivers who take safety seriously!

Modern Transportation Services logoModern Transportation is seeking Company Drivers to haul liquid chemicals to customers throughout the south and south central region on either a dedicated or regional lanes (both are available).  Drivers will be pulling 53 foot tankers with hazardous chemicals. Drivers choose Modern Transportation to build their career at a place they call home.

Modern Transportation is hiring CDL A Regional Liquid Chemical Tank Drivers in Cincinnati, OH.

Compensation

  • Average weekly pay: $1,300 averaging 2,500 miles a week
  • Base CPM:
    • .53 first 6 months
    • .54 after 6 months
    • .55 at 1 year
    • .56 at 2 years
    • .57 at 3 years
  • Additional Pay:
    • .53 paid empty miles
    • $22 an hour from arrival detention pay
    • Holiday Pay – New Year’s day, Memorial day, July 4th, Labor day, Thanksgiving day & Christmas day
  • Bonuses include:
    • Quarterly Safety Bonus ($300/quarter)
    • Driver Referral Bonus – $1,500/hire after 30 days-no limit
    • Paid via direct deposit weekly

Benefits & Perks

Great company benefits starting after 30 days:

  • Medical, dental, vision and prescription drug coverage
  • 401K plan with company match
  • Life Insurance, Short-term and Accident
  • Paid Time Off (Begin accruing week one, eligible to begin taking as it is earned after 90 days)
  • Paid orientation and training
  • Perks: Fuel Cards, Base Plate Program and Fuel tax reporting for Owner Operators
  • Constant Work

Routes & Schedule

  • Routes: 70% East of Cincinnati; Philadelphia, New Jersey
  • Home Time: Average load keeps driver out 2 days or 1 night a week
  • Some evenings and weekends may be required
  • Level of Touch: No Touch Freight

Equipment

  • Fleet is 2019 Freightliner or International LT
  • Automatic transmission
  • Governed speed: 65 mph
  • Inward and outward facing cameras

Requirements

  • Must be at least 22 years of age
  • Must have a valid CDL A license
  • Tanker and Hazmat endorsements required
  • Must have a minimum of 2 years verifiable tractor-trailer tanker experience
  • Cincinnati: No DUI/DWIs or reckless driving charges in last 3 years
  • Must meet Department of Transportation (DOT) testing and physical requirements and be knowledgeable of DOT regulations
  • Must be able to pass a required pre-employment drug screen and a new DOT physical
  • Cincinnati Hiring Radius: Drivers must live within 40 miles of Cincinnati, OH or be willing to relocate for this position

Modern Transportation Services truckJoin the Modern Transportation Team

Modern Transportation is hiring CDL A Regional Liquid Chemical Tank Drivers in Cincinnati, OH. Start your next job with Modern Transportation Services!

Learn More and Apply

The post Job of the Day: Modern Transportation appeared first on Drive My Way.

Rss

New Washer System Keep Headlights Clean for Truckers

It’s been one of the biggest problems of all times in the trucking industry, keeping the headlights clean on your truck in bad weather. Former trucker Eric Richardson has come up with a solution to the age old problem after it causing problems in his own career. In this episode we find out how the Maric Washer System works and why it may be the next best thing for truck drivers to improve safety on the road. You can learn more about the washer system at www.maricltd.com

This episode is sponsored by C.A.T. Transport offering flexible work options, pet friendly programs, and is one of the Best Managed Carriers in Canada. Learn more at www.cat.ca  or call 1-800-363-5313

DriverCheck is a leader in drug and alcohol, cognitive, and workplace testing helping employers have a safe workplace for their staff. Learn how DriverCheck can help you be safe at www.drivercheck.ca

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Rss

Ground crew person with yellow vest and paddles to wave plane to parking spor.

Schiphol Airport in Amsterdam will move the cargo department under the wing of airline operations beginning in March to create more coordination between the commercial and operations units.

Schiphol is the fourteenth largest airport in the world for international airfreight, according to the Airports Council International.

The single division will be led by Anne Marie van Hemert, senior manager of aviation business development. Miriam Hoekstra – van der Deen will step down as director of airport operations and will be succeeded by Patricia Vitalis, who is currently the senior manager process, development and capacity management, and will serve as the new head of the Airport Operations and Aviation Partnerships business Unit.

The airport cargo information platform Cargonaut, acquired in November by Royal Schiphol Group, will also be part of the new Aviation Business Development Division. Royal Schiphol Group said at the time it will modernize the system over the next two years to make it easier for cargo partners to share information.

“Cargo is, and remains, important to Schiphol and it supports the passenger network, making certain intercontinental routes profitable for many passenger airlines,” said Hoekstra – van der Deen in a statement on Thursday.

“Having the route and business development managers and the cargo managers working more closely together will bring more synergy to the way we work and ensure that we can better support the airlines, especially during these challenging times.”

The new division will continue to support ongoing cargo initiatives by local freight community, including organizing itself into a hub for shipping vaccines and pharmaceutical products, the Holland Flower Alliance and 

by the community including Vaccines Gateway Netherlands, Pharma Gateway Amsterdam, the Holland Flower Alliance, and the implementation this month of digital pre-notifications for all export cargo.

In other personnel moves, Bart Pouwels, the head of cargo, and Ferry van der Ent, director of business development will both leave Schiphol in March.

A manager for the new airline and cargo partnerships team will be appointed over the coming weeks.

Click here for more American Shipper/FreightWaves stories by Eric Kulisch.

RELATED NEWS:

Kuehne + Nagel lands global logistics deal for Moderna COVID-19 vaccine

Reddit

"Snow" qualmie today.

Reddit

You had one job...

Reddit

Dispatch: live load of a single pallet

Reddit

Started 6 months ago running a 53' flat deck. Only missed Montana and North Dakota on my bingo card

Reddit

Alright, who was it?

Rss

Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Border bridge project gets presidential permit; Honda to build electric vehicle in Mexico; Texas-based Spirit Truck Lines acquired by Forgelight; and CBP seizes meth hidden in tortilla press.

Pharr bridge project receives presidential permit

The city of Pharr, Texas, recently received a presidential permit authorizing the expansion of the Pharr-Reynosa International Bridge.

The permit, which was issued Dec. 31 by President Donald Trump, allows for the addition of another bridge at the Pharr port of entry on the U.S.-Mexico border.

The aim of the bridge project is to add cargo capacity and reduce wait times at the port, said Pharr Mayor Ambrosio Hernandez.

“This permit amends the current permit to allow for the expansion of the Pharr International Bridge and will further support the record numbers of international trade and commerce that transpires on our port of entry,” Hernandez said in a release.

The second bridge will add two new lanes to separate trucks and cars, while dedicating specific lanes for empty cargo trucks and full cargo trucks, and Customs-Trade Partnership Against Terrorism (CTPAT) certified cargo trucks.

Pharr-Reynosa International Bridge is one of the busiest commercial border crossings on the U.S.-Mexico border. Pharr had 623,155 truck crossings during fiscal year 2018-19.

The bridge’s trade totaled $3.21 billion for the month of October, according to WorldCity.

Pharr’s top three exports to Mexico by value in November were liquified natural gas ($2 billion), motor vehicle parts ($471 million) and gasoline ($400 million).

Its top three imports from Mexico were TVs and computer monitors ($2 billion); avocados, strawberries, blueberries, raspberries, pineapples, etc. ($1.34 billion); and electrical boards, panels and switches ($906 million). 

GM to build Honda electric vehicle in Mexico

General Motors Co. will build Honda and Acura-branded electric crossovers in Mexico and Tennessee starting in 2023, Automotive News reported Wednesday.

The Honda electric vehicle reportedly will be assembled at the GM plant in the northern Mexico city of Ramos Arizpe, about 175 miles from Laredo, Texas. GM assembles its Chevrolet Blazer and Equinox at the same location.

GM will assemble Honda’s electric vehicle at an assembly plant in Mexico. (Photo: Honda)

The new Acura electric vehicle will be built at GM’s facility in Spring Hill, Tennessee. The plant currently builds the GMC Acadia, Cadillac XT5 and XT6. 

GM and Honda announced an agreement to jointly develop electric vehicles in April. The two companies said that the Honda and Acura electric vehicles would feature exteriors and interiors designed by Honda while using GM’s global electric vehicle platform.

Texas-based Spirit Truck Lines acquired by Forgelight

Spirit Truck Lines, headquartered in San Juan, Texas, was recently acquired by investment firm Forgelight.

Spirit provides dry-van truckload transportation outbound from the Mexican border and returning inbound from throughout the continental U.S. The company has more than 300 tractors and 1,200 power units serving the U.S.-Mexico cross-border market.

Plethora Businesses, an M&A advisory firm headquartered in Orange, California, served as the sell-side adviser in the deal.

“The Spirit team has built an impressive operation with many world-class clients and their truckload and cross-border focus is an excellent platform for continued service expansion,” Robert Fahrenhorst, Plethora’s managing director, said in a release

New York-based ForgeLight is an investment company focused on the media and consumer technology sectors. 

CBP seizes meth hidden in tortilla press

U.S. Customs and Border Protection officers in Cincinnati recently found 26 pounds of meth in a shipment of imported freight from Mexico.

The case occurred Jan. 1 at the Cincinnati Port of Entry, where a K-9 alerted agents to a shipment of imported handicrafts from Mexico. A closer exam reportedly revealed a white powdery substance concealed inside a wooden tortilla press in the shipment.

The powder tested positive for methamphetamine, with a total weight of 26 pounds. The shipment was headed to a residence in Houston, according to the CBP.

Borderlands is sponsored by Forager. More information on Forager’s offerings can be found at: https://www.foragerscs.com/.

Click for more FreightWaves articles by Noi Mahoney.

More articles by Noi Mahoney

Volvo Trucks’ Mexico exit raises concerns for carriers

185 Texas workers laid off from metal supplier

Five biggest Mexico border busts of 2020

Rss

Story by: Mark Solomon at FreightWaves   Technology to help improve freight-loading at docks, company says   XPO Logistics Inc. (NYSE: XPO) said it has completed a pilot program to train its North American less-than-truckload (LTL) dock employees in using virtual reality (VR) technology to improve their freight-loading performance. In the pilot, XPO created a […]

The post XPO Logistics completes virtual reality pilot for LTL dockworkers appeared first on iTrucker | Transforming Trucking.

Reddit

Local moves

Rss

Miss one of our shows this week? Get caught up here! 

You can conveniently find every FreightWaves podcast in one feed via the free FreightCasts channel on freightwaves.com/podcasts, iTunes, Spotify or wherever podcasts are found. 

Subscribe to FreightCasts and never miss a FreightWaves podcast.

The full list of FreightWaves media can be streamed via the FreightWavesTV app available on your smartphone, Apple TV, Roku and Fire TV. The app is free on all platforms.

Users of the FreightWavesTV app also have access to a full lineup of FreightWavesTV content, including weekday livestreams, special reports, news segments, past shows, SONAR demos, rapid-fire demos and exclusive interviews.

WHAT THE TRUCK?!?

Monday: Dooner and The Dude remember a special boy who lost his battle with a brain tumor on the first WTT?!? of the year 

Midday Market Update

Tuesday: How can a changing political landscape affect transportation? Find out where politics meets logistics.

Thursday: The list of best companies to drive for in 2021 is out. Which carriers made the cut?

Great Quarter, Guys

Tuesday: Andrew Cox and Seth Holm make predictions for the state of sales in the new year.

Put That Coffee Down

Wednesday: Hook, line, sales sinker. Kevin Hill and Blythe Brumleve teach you the techniques to land you big sales pitches. 

Freightonomics

Wednesday: Where will the market head in 2021? Anthony Smith and Zach Strickland lay out their predictions for the new year. 

#WithSONAR

Wednesday: Luke Falasca and Kyle Taylor take a deep dive into spot rates and figure out if your brokers are paying more than they should. 

Navigate B2B 

Friday: It’s still “containergeddon” on the high seas, even after the holiday shipping rush. Steve Ferreira breaks down how much longer he thinks the container crisis will last. 

Get the top headlines from FreightWaves.com every weekday morning, available on FreightWaves.com/podcasts, your favorite podcasts player and Alexa by adding the skill “FreightWaves.”

You can find more recaps of our shows here

More FreightWaves Podcasts

Reddit

Freeways, cars and trucks...

Reddit

Everyone else ready for trucking in 2021?

Rss

Story by: Clarissa Hawes, Senior Editor, Investigations and Enterprise at FreightWaves     “Message to truckers: Focus on policy, not politics”   Trucking groups condemned the Wednesday attack on the U.S. Capitol by supporters of President Trump, which left at least five people dead, including a Capitol Police officer, and many more injured. The Owner-Operator […]

The post OOIDA and ATA are among trucking groups condemning US capitol violence appeared first on iTrucker | Transforming Trucking.

Reddit

Container hauler time line

Rss

Startup hybrid electric truck driveline maker Hyliion Holdings (NYSE: HYLN) is $142 million better off following the sale of shares converted from warrants issued by the blank check company (SPAC) that brought Hyliion public.

Interestingly, Hyliion doesn’t need the money to run the business. Its reverse merger with Tortoise Acquisition Corp. in October 2020 gave Hyliion $520 million after expenses to fund its business plan.

“This incremental capital allows us to pursue additional partnerships and M&A activity that we may not have considered previously,” CEO Thomas Healy said in a press release Thursday.

The warrants acted as a sweetener to early investors who bought in shares in Tortoise. Each full warrant could be exchanged with $11.50 for a share of Hyliion stock after the business combination on Oct. 3.

Hyliion shares have traded above $50. Even at Friday’s closing price of $17.27, shares resulting from the warrants were in the money. More than 98.5% of the warrants issued in February 2019 were exchanged for 12.5 million shares of Hyliion stock. The remainder expired on Dec. 30.

Business moves ahead

The share price has little impact on Hyliion’s plans to begin early production of its ERX Hypertruck later this year. The ERX is a hybrid system consisting of an electronic axle and a natural gas-powered generator that makes electricity to charge the battery on Class 8 trucks. Proprietary software monitors energy use, routing and other functions.

“We view this as a solution we can offer our long-haul customers. We think [Hyliion’s] systems paired with our motors, inverters, and eAxles can meet their immediate needs for fuel efficiency,” Ryan Laskey, Dana Inc. senior vice president, commercial vehicle drive and motions systems, told FreightWaves.

Dana (NYSE: DAN) was an early investor in Hyliion.

If the generator uses renewable natural gas (RNG), Hyliion expects it will record below net-zero greenhouse gas emissions. 

So far, Hyliion has booked no revenue, deciding against recording $1 million from 20 electronic axle systems for diesel and natural gas trucks.  

“We see a tremendous number of opportunities in the transportation sector that are ready to participate in this electrification transformation,” Healy said. 

Maybe even hydrogen

“Over the next year, we will explore additional technologies and business strategies that could range from improving our existing solutions, RNG expansion, hydrogen development, improved battery solutions, expanding our product portfolio and more,” Healy said.

For its one customer that requested a hydrogen-powered generator, Hyliion is partnering with French automotive fuel cell systems maker Faurecia and Symbio, a joint venture of Faurecia and Michelin, for fuel cell technology and production.

“Renewable natural gas makes a ton of sense. The costs are just so much lower than diesel and hydrogen. So, I’m long on renewable natural gas,” Healy said in an interview with FreightWaves on Aug. 31. “The thing I still can’t wrap my head around is the cost [of hydrogen].”

Hyliion decides against booking revenue from early trucks

Nikola, Hyliion defend divergent paths to zero-emission trucking

Dana builds electrification vertical for commercial vehicles

Click for more FreightWaves articles by Alan Adler.

Rss

Chart of the Week:  Employment Not Seasonally Adjusted – Truck Transportation, Equipment Orders – Class 8 Vehicles – USA SONAR: EMPN.TRUK, ORDERS.CL8

One of the biggest questions of 2021 for trucking is whether a wave of capacity will enter the market that stabilizes the current elevated spot rate environment. This is a question many transportation providers struggle with each year as they attempt to balance the need for growth versus cost control. Overextend your fleet beyond demand and you have to drop your prices just to keep rolling. Demand exceeds your capacity and you miss out on precious growth opportunities. The bottom line is spot rates have expanded too much and sustained for too long not to see growth in capacity this year. So the real question is not if, but when will it occur. 

Trucking capacity is relatively opaque, with very few measures available to get a full picture of how much is available in the for-hire or non-private trucking space. The Bureau of Labor Statistics puts out a monthly figure measuring employees in the truck transportation space that is a good directional measure for the growth or decline of the industry. It covers all the employees of carriers, including drivers and back office workers. 

Looking at the non-seasonally adjusted figure for truck transportation employment levels as of November, there is still a long way to go to get back to pre-pandemic levels. In November of 2019, there were over 15.3 million people employed in the trucking industry, whereas this past November that figure sat around 14.8 million — a difference of more than 500,000 jobs. 

Like many industries, trucking companies have not fully recovered their employment levels to where they were when the pandemic began in earnest in March of 2020. In the meantime, freight volumes have expanded beyond where they were when this began. The result has been unprecedented growth in spot market rates in the second half of the 2020. 

With so much uncertainty around what was occurring and how long the demand would last, carriers were hesitant to invest in growth, having been hit hard by low volumes in April and burned by an oversupplied 2019 market that resulted largely from overinvestment in 2018.

Once again, we saw a familiar pattern emerge in late 2020 as orders for new Class 8 trucks hit 47,034 units in November and preliminary reports for December have orders over 50,000, according to ACT Research. These numbers resemble those last seen in July and August of 2018 as spot rates hit multiyear highs.

These two situations are not completely congruent. Carriers were motivated to invest in depreciating assets thanks in large part to the tax incentive put in place by the Trump administration. One of the major reasons for the surge of freight in 2017-18, which led to their confidence in an extended period of demand. 

Orders averaged 32,000 units for the 12-month period starting in October of 2017, compared to 14,600 for the previous 12-month period. Looking at the employment figures we can see this was a rapid expansionary period for trucking that bled into early 2019. 

The recent surge of orders signals a wave of capacity coming online in the second half of 2021, but some of that capacity will be replacement orders for older equipment and replenishment from a slew of exits in 2019. 

Ordering trucks will be easier than seating them this year as driver recruitment challenges remain in place. Driver schools have been operating well below capacity and the Drug and Alcohol Clearinghouse has removed thousands of drivers from the pool since its inception last year. 

Most forecasts show demand staying elevated for the first half of 2021, which means these orders will not have an impact in the near-term. Many questions still remain around what demand looks like after the pandemic begins to wane. These orders suggest carriers are much more optimistic about the long-term than they were earlier in the year.

About the Chart of the Week

The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on FreightWaves.com for future reference.

SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time.

The FreightWaves data science and product teams are releasing new data sets each week and enhancing the client experience.

To request a SONAR demo, click here.

Reddit

Here's mine...

Rss

Violent attack at U.S. Capitol

Trucking groups condemned the Wednesday attack on the U.S. Capitol by supporters of President Trump, which left at least five people dead, including a Capitol Police officer, and many more injured. 

The Owner-Operator Independent Drivers Association, the Western States Trucking Association and the American Trucking Associations separately spoke out against the violence, casting it as an affront to U.S. democracy. 

“Certainly most people would agree that Wednesday was a sad day for American democracy,” Todd Spencer, president of the Owner-Operator Independent Drivers Association, told FreightWaves. “What happened in the nation’s Capitol is certainly unacceptable, inappropriate, totally uncalled for.”

Thousands of pro-Trump supporters, including some truck drivers, marched to the Capitol at the president’s urging after attending Trump’s “Save America Rally” where he continued to make false claims about election fraud and called for lawmakers to block the certification of the Electoral College vote.

Spencer said he supports all truckers’ rights to peacefully protest, but not those wanting to do harm or destroy public or private property.

OOIDA, a Missouri-based trade association that represents small-business truckers, was founded in the early 1970s as truckers protested the OPEC oil embargoes that attempted to shut down the trucking industry and nearly crippled the nation. 

“We figured out pretty quickly that protests make a little noise for a moment, but if you want to see real change, you have to knuckle down and work within the system,” Spencer said.

Spencer said he has members of both political parties who say Washington, D.C., doesn’t really work for them right now.

“It’s time to turn down the noise and focus on the issues, not politics,” he said. “The vast majority of issues that truckers have can only be resolved with bipartisan cooperation.”

Truckers need a place at the table under Biden administration

Joe Rajkovacz, who serves as the director of governmental affairs for the Western States Trucking Association, said if truckers want a place at the table to talk about serious issues facing the trucking industry they must first turn off the Trump rhetoric.

“Like it or not, there is a changing of the guard in Washington, D.C.,” Rajkovacz told FreightWaves. “If you truly care about the trucking industry, antagonizing those coming into power, who will be the decision makers, will backfire on you.”

He said any traction truckers gained under Trump will be lost by continuing to buy into the conspiracy theories about election fraud touted by the president, some U.S. lawmakers and pro-Trump supporters.

“There are some serious issues ahead that need to be addressed under President-elect Biden,” Rajkovacz said. “You aren’t going to gain a damn thing if you antagonize the Democrats right now,” he said.

Business groups seek to distance themselves from Trump

National Association of Manufacturers CEO Jay Timmons, a staunch supporter of Trump policies, issued a stunning rebuke of the president Wednesday and called for him to be removed from office. 

The Retail Leaders Industry Association also forcefully denounced conspiracy theories about the election and called Wednesday’s events sedition.

U.S. Department of Transportation Secretary Elaine Chao resigned one day after Wednesday’s violent attack on the Capitol.

In commenting on her resignation, American Trucking Associations President and CEO Chris Spear called Chao a “strong leader and a tremendous partner” on issues affecting trucking.

“On a personal note, having worked for and with her over many years, I can attest that Elaine is a person of strong moral character, and should be applauded for not standing idly by following yesterday’s abhorrent and shameful events at the Capitol,” Spear said in a statement. “This is the kind of principled stand in support of our democracy I’ve always known her to take.”

The ATA,  which has had strong ties to Trump over the last four years, is a national trade organization representing large motor carriers in the U.S.

“We look forward to working with President-elect Biden’s Transportation Secretary nominee Pete Buttigieg as he begins his transition to lead the Department,” Spear said.

Read related articles:

Business groups condemn Trump-led insurrection, election fraud claims
DOT chief Elaine Chao to resign

Reddit

So...I do a lot of work between Chicago and Cleveland...and both oceans...

Reddit

Can't wait for bug season!

Rss

Rail stock of an OmniTRAX railroad. The company was hit in a ransomware attack.

Colorado-based short line rail operator and logistics provider OmniTRAX was hit by a recent ransomware attack and data theft that targeted its corporate parent, Broe Group.

OmniTRAX confirmed to FreightWaves that the cyberattack had occurred after the Conti ransomware gang posted stolen data from a leak site. The company, however, provided no details about the incident and whether it impacted any operations.

“We are fully aware of the situation, but company policy requires we do not comment on security protocols,” John Spiegleman, OmniTRAX’s chief legal officer and general counsel, said in a statement. “OmniTRAX continues to operate, business as usual.”

OmniTRAX, headquartered in Denver, operates 21 short line railroads in the U.S. and one in Canada. While there was no indication of operational impacts, the short line railroads play an essential role in the North American supply chain by linking shippers with the larger rail networks. 

The attack occurred sometime before Dec. 24, based on the timing of the ransomware gang’s post. The leak itself suggests that the Broe Group, which owns OmniTRAX as part of a multibillion dollar portfolio and is headquartered at the same location, refused to pay the hackers’ ransom demands.

A sample of the 70 gigabytes leaked files viewed by FreightWaves include internal OmniTRAX documents, including the apparent contents of individual employee work computers. It was not clear if it included data pertaining to OmniTRAX’s rail operations or its customers.

First publicly known cyberattack of its kind in the U.S. freight rail sector

It represents the first publicly known case of a so-called double-exhortation ransomware attack against a U.S. freight rail operator. Numerous trucking and logistics companies including Forward Air have been targeted by an array of ransomware groups using the tactic of stealing and then encrypting data and demanding payments in exchange for unlocking systems and a promise to never release that data publicly. 

A cybersecurity expert familiar with the rail industry told FreightWaves that the likely attack caused little to no disruption to OmniTRAX’s rail operations. But the expert said the public disclosure of employee data is troubling. 

Concerns have grown in recent years about cyberattacks on railroads, with the increasing digitization of the industry but the absence of appropriate cybersecurity. Fears have largely focused on the prospects of a large-scale disruption to the supply chain, or hackers compromising the systems of rolling stock, potentially stopping trains or disabling safety systems. 

Ransomware attacks generally are a blunter instrument designed for the purpose of making the hacking groups money. But as evidenced by the recent Forward Air attack, the locking of data can impact transportation operations. 

The CEO of railcar manufacturer Greenbrier, Bill Furman, told financial analysts on Wednesday that the company is stepping up its cybersecurity efforts in response to high threat levels.

“This is a growing risk to all companies we operate, where we have some vulnerabilities if we were penetrated, we’ve all watched those headlines,” Furman said. “So our board is concerned about that. We’re concerned about it. We’re investing to protect ourselves.”

FreightWaves Senior Staff Reporter Joanna Marsh contributed to this report.

Click for more FreightWaves articles by Nate Tabak.

As ransomware attacks hit trucking, victims face costly dilemma

5 defining cyberattacks on trucking and logistics in 2020

Forward Air reveals ransomware attack, warns of revenue hit

Reddit

My spy report. Good thing I'm Hourly

Reddit

My turn. 4 years as a local driver.

Reddit

Figured I'd try van hauling

Reddit

My first year OTR

Reddit

Guess I'm a creature of habit.

Rss

Evaluating the Safety of a Carrier with John Farquhar

Risk specialist John Farquhar is Bruce’s guest on the show today to talk about how drivers can evaluate a carrier to determine if it is a good place to work. Working for an unsafe carrier can out a driver at risk causing problems for a driver and their career now and in the future. Farquhar is a veteran of the industry from trucking company owner, insurance specialist, and now risk analysis expert. You can learn more about Farquhar and his company Summit Risk Solutions at www.summitrisksolutions.ca

This episode is sponsored by Bison Transport with many opportunities for truck drivers in their fleet across Canada. You can learn more about Bison and the opportunities available http://fuelyourjourney.ca/  or call 1-800-527-5781 #fuelyourjourney @BisonTransport

DriverCheck is a leader in drug and alcohol, cognitive, and workplace testing helping employers have a safe workplace for their staff. Learn how DriverCheck can help you be safe at www.drivercheck.ca

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Reddit

I like my buckets ice cold! -10 to 0

Rss

For the second month in a row, China was the main trading partner of the U.S., followed by Mexico in second place and Canada in third. 

Trade between the U.S. and China totaled $59 billion in November, an increase of 30% compared to the same period a year ago, according to data released Thursday by the U.S. Census Bureau.

Mexico’s trade with the U.S. totaled $49 billion in November, a decrease of 1.8% from November 2019. Mexico had ranked No. 1 for the same month last year.

Trade between the U.S. and Canada totaled $47 billion in November. It was $17 billion with Japan.

China was also the top U.S. trading partner from January through November, totaling $504 billion, followed by Mexico at $489 billion, Canada at $478 billion and Japan at $167 billion.

The Port of Los Angeles remains the No. 1-ranked port among U.S. gateways in November, followed by Chicago O’Hare International Airport.

Port Laredo in Texas was No. 3 for the second straight month, with total trade with the world at $19.8 billion in November. 

Port Laredo ranked No. 4 for total trade among all U.S. ports and border crossings through November. It ranked No. 1 during the same period last year.

While Port Laredo’s total trade may be down because of the pandemic, there are still plenty of trucks and loads at the border, said Jordan Dewart, a manager director at Redwood Mexico based in Laredo.  

“This first week of January, load-to-truck [ratio] spiked to over 34-to-1 in Laredo, with volumes of up to 5,000 trucks a day,” Dewart said. “That’s far ahead of 2019.”

According to FreightWaves’ SONAR platform, 2021 and 2020 outbound volumes (highlighted in blue) in Laredo are already above recorded levels at this time in 2018 (red) and 2019 (green). FreightWaves SONAR (OTVI.LRD)

Dewart said the increasing number of loads can be attributed to increased production from factories in Mexico, as well as an increase in demand from the U.S. 

“It’s just a continued high level of demand from U.S. employers in all sectors: retail health care, consumer electronics, automotive,” Dewart said.

Click for more FreightWaves articles by Noi Mahoney.

More articles by Noi Mahoney

Tanker driver killed in fiery crash in Houston

185 Texas workers laid off from metal supplier

Five biggest Mexico border busts of 2020

Rss

Navigate B2B 11/20

Container shortages continue into new year

Ocean Audit CEO Steve Ferreira spent the end of 2020 talking about challenges across the maritime shipping industry, and one big story was the shortage of containers and massive port backlogs. 

“No analyst expected ‘Containergeddon’ to extend past Q1,” but the current state of the economy shows the opposite is happening, Ferreira says in this episode of Navigate B2B. 

He believes that the possibility of another stimulus check for consumers will release pent-up demand, but later than originally anticipated. Ferreira also thinks delays in vaccine rollouts will keep pushing the shift of consumer spending back to services and away from goods. 

The bottom line is that container demand will only keep rising as consumers keep buying goods, and maritime rates will keep rising as well, according to Ferreira. 

Ferreira welcomes Beth Granger, CEO of Beth Granger Consulting, to talk about how social networking can provide a personal edge. 

Granger is a LinkedIn trainer and her goal is to help clients up their game on social media. 
You can find more Navigate B2B recaps and recaps for all our live podcasts here.

Subscribe to our Youtube

Follow us on Twitter

Like us on Facebook

Rss

The first glance at the BLS employment numbers in trucking looks strong, but some other numbers are lagging.

Monthly employment figures show a transportation industry that is adding a significant amount of jobs by one measure but also raises questions why a red-hot freight market isn’t putting up numbers even higher.

The most looked-to number in the monthly data for the health of the industry is employment in the truck transportation sector on a seasonally adjusted basis. The preliminary number for December rose to 1,484,300 jobs, an increase of  7,300 jobs from the revised November number of 1,477,000 jobs. With the October numbers in the books — the last two months would have reflected preliminary estimates of October — it means that the truck transportation sector has added 19,100 jobs over the last two months on a seasonally adjusted basis.

But there are two things to note: The December figure is still less than the 1,526,400 truck transportation jobs reported in December 2019. And on a non-seasonally adjusted basis, the number of truck transportation jobs in December actually declined slightly, to 1,482,400 from 1,484,900. (All December numbers are preliminary.)

While analysts always tend to look at seasonally adjusted numbers, Jason Miller, an associate professor at Michigan State University who specializes in trucking and supply chain research, said he likes to look at both figures.

“The seasonal adjustment factors are based on historical patterns,” he wrote in an email to FreightWaves. But the problem is that those patterns can become “outdated” by big shocks to the system, like what the global economy is going through now, Miller said.  

“The not seasonally adjusted data provides the raw figures and, hence, isn’t sensitive to past patterns potentially becoming outdated,” Miller said.

Miller’s theory on the divergent paths of seasonally adjusted and not seasonally adjusted figures in December is that it was created by the impact from what he described as the “specialized local sector.”

“We see pronounced seasonality tends to be present, with substantial employment declines in December usually occurring,” he wrote. “We didn’t see the usual decline occur in November, though. This would suggest that if employment stayed steady, we would see the seasonally adjusted employment inflated upwards.”

Miller also dove into the more specific sector data that goes through November. That breaks down the truck transportation jobs numbers into LTL and truckload. 

One area that has caught his eye is the difference in the not seasonally adjusted numbers for truckload and LTL carriers. 

“One different dynamic to me with LTL is that we can see that employment began declining after July 2019, but this didn’t happen in (the category of truckload),,” Miller wrote in an email. “My thought is that this occurred because of LTL carriers’ greater exposure to the industrial economy, and we saw manufacturing activity slow in the second half of 2019.”

Graphic: Jason Miller, Michigan State using BLS data

And while the not seasonally adjusted number for truck transportation as a whole dropped in December, the more specific truckload data through November showed what Miller said was “a major upward movement” for the first time since “the ending of lockdowns.”

“Employment in that sector finally moved above 2017 levels,” he added.

Graphic: Jason Miller, Michigan State using BLS data

Among some of the other highlights in the monthly report:

— The producer price index (PPI) in the NAICS truck transportation sector, which starts with the numbers 484, shows the pressure that cost inflation is bringing to moving freight by truck. The PPI for that number rose in November to 149.4. (December data is not available yet.) That is the highest level ever and has now jumped from 140.6 in May to its November level. Even in the hot freight market of 2018, it never rose above 146.9.

— Surprisingly, that increase in PPI didn’t come with a significant boost in wages between October and November. Average hourly earnings for production and nonsupervisory employees, according to the BLS, rose to $25.15 in November, up just 3 cents from the month before. However, it is up significantly from the $24.60 posted in August. 

— The strong transportation and warehousing sector, which includes all NAICS categories that begin with 48 or 49, saw its total employment rise to 5,588,800, up from 5,542,200. But just like the numbers in the truck transportation sector, it hasn’t reached year-ago numbers, which are 67,100 less than December 2019. But that has narrowed by an enormous amount. The year-to-year gap in May was 518,300 jobs. The unemployment rate in the sector ticked up to 9.3% from 9%. It’s the second consecutive month of an increase, as it stood at 8.9% in October.

— The more specific warehousing and storage sector continues to climb higher. It posted seasonally adjusted job totals of 1,295,500 in December, up from 1,287,300 jobs. A year ago, it was 1,192,000. Unlike truck transport, which saw a decline in the not seasonally adjusted numbers, warehousing and storage rose on that basis, to 1,326,300 jobs from 1,319,000 jobs. 

More articles by John Kingston

New federal rule on worker classification may not see light of day

California’s Prop 22 spurred by AB5 finds early victims: grocery delivery drivers

Trucking companies may be faring too well for obtaining more PPP funds

Reddit

My route in 2020 (started in Sept)

Rss

Featured Truck of the Week Scetta Motorhome

Today’s truck is a cool Peterbilt Motorhome brought to you by the Big Rig Truck Nationals. Each week Bruce picks a cool truck from the many truck shows he attends. Hearing about them is one thing, seeing them is another. Check out this cool ride!

Check out the video on this featured truck by clicking here

This episode is sponsored by Rosedale Transport offering career opportunities for truck drivers with their large network. You can learn more at www.rosedalegroup.com

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Rss

[caption caption="US Customs and Border Protection currently only scans about 15 percent of commercial cargo and 1 percent of personal vehicles entering through land ports with non-intrusive inspection equipment. Photo credit: CBP."][/caption]New legislation will eventually require the US Department of Homeland Security (DHS) to use X-ray technology to inspect every...

Rss

Rihm Kenworth, a long-time truck dealership in Minnesota, opened a new facility in Albert Lea this week to meet the

The post Rihm Kenworth Opens New Dealership in Albert Lea appeared first on NextTruck Blog & Industry News - Trucker Information.

Rss

A temperature-controlled container on a lift gets loaded in side of a light blue plane.

Full-year traffic figures from several airports last week reflect an upside down year dominated by the coronavirus pandemic in 2020. Passenger business slowed to a trickle with airlines closing most of their networks in the face of government lockdowns and other health measures, while cargo picked up the slack in some cases.

Hong Kong, the world’s largest cargo airport, experienced a 7% decline in cargo to 4.5 million tons, and served 87% fewer passengers. The airport handled 68,660 cargo flights during the year, an 18.3% surge compared to 2019. The damage to Hong Kong came in the loss of passenger traffic because so much cargo is transshipped from regional flights to long-haul passenger and freighter flights.

In Europe, Leipzig/Halle Airport and Amsterdam’s Schiphol Airport both handled about 1.4 million tons of cargo in 2020, but they took different routes to that total. Airfreight grew 11.7% at Germany’s second-largest cargo airport, setting an annual record for tonnage, while volume fell 8% at Schiphol. 

Leipzig/Halle passenger throughput was 80% less than in 2019, but freight growth has been strong since late spring culminating with 35% year-over-year volume growth in December (140,000 tons). Private airport operator Mitteldeutsche Flughafen AG said the current year is shaping up strong too, headlined by medical goods, protective equipment, possible COVID-19 vaccines and e-commerce packages. 

Leipzig/Halle is home to DHL Express largest air hub and began hosting Amazon Air’s first European air hub in early November. Medical shipments are expected to increase once construction is completed on a nearby logistics center for disaster management. About 60 cargo airlines now serve the airport.

At Schiphol, freighters accounted for 61% of total volume, with 29% carried on passenger flights and 10% in passenger planes reassigned to cargo transport. Schiphol is the 14th busiest airport in the world for international air cargo.

The airport said inbound volume fell 4.7% and exports dropped 11.7% compared to 2019. The three biggest destinations for cargo tonnage were Shanghai, China, Doha, Qatar, and Chicago. 

Meanwhile, Brussels Airport reported 2.2% growth in cargo to 512,000 tons as passenger traffic plunged 74%. The strongest growth, 43%, came from all-cargo aircraft thanks to the arrival of several new carriers and the use of passenger aircraft as mini-freighters, which accounted for 30% to 40% of the full freighter activity. Express business also grew a healthy 18%. 

Imports, especially from Asia, increased, while exports decreased versus the same month a year ago. The airport is also at the forefront of COVID-19 shipments.

A 19% drop in cargo delivered by truck from other airports pulled Brussels Airport’s overall volume down by 3%.

In December, normally a strong cargo month, volumes decreased 3.4% compared to an unusually strong month in 2019.

In related news, Brussels Airport Co. has named Geert Aerts to succeed Steven Polmans as director of cargo and logistics in March. Aerts spent the past 17 years as a regional operations director for CAE Inc., where he managed a network of 16 flight simulator training centers and flight schools, including at Brussels Airport. The airport operator said his experience working for a global company with many stakeholders and solving problems for customers make him an ideal candidate for the job.

Polmans will depart Brussels Airport after 10 years, during which time he was instrumental in developing a regional cargo hub for pharmaceuticals and other goods,  and digital processes for connecting the local freight community. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

RELATED NEWS:

Amazon Air opens first European hub

Air cargo market levels off in November; passenger sector sinks

Rss

A temperature-controlled container on a lift gets loaded in side of a light blue plane.

Full-year traffic figures from several airports last week reflect an upside down year dominated by the coronavirus pandemic in 2020. Passenger business slowed to a trickle with airlines closing most of their networks in the face of government lockdowns and other health measures, while cargo picked up the slack in some cases.

Hong Kong, the world’s largest cargo airport, experienced a 7% decline in cargo to 4.5 million tons, and served 87% fewer passengers. The airport handled 68,660 cargo flights during the year, an 18.3% surge compared to 2019. The damage to Hong Kong came in the loss of passenger traffic because so much cargo is transshipped from regional flights to long-haul passenger and freighter flights.

In Europe, Leipzig/Halle Airport and Amsterdam’s Schiphol Airport both handled about 1.4 million tons of cargo in 2020, but they took different routes to that total. Airfreight grew 11.7% at Germany’s second-largest cargo airport, setting an annual record for tonnage, while volume fell 8% at Schiphol. 

Leipzig/Halle passenger throughput was 80% less than in 2019, but freight growth has been strong since late spring culminating with 35% year-over-year volume growth in December (140,000 tons). Private airport operator Mitteldeutsche Flughafen AG said the current year is shaping up strong too, headlined by medical goods, protective equipment, possible COVID-19 vaccines and e-commerce packages. 

Leipzig/Halle is home to DHL Express largest air hub and began hosting Amazon Air’s first European air hub in early November. Medical shipments are expected to increase once construction is completed on a nearby logistics center for disaster management. About 60 cargo airlines now serve the airport.

At Schiphol, freighters accounted for 61% of total volume, with 29% carried on passenger flights and 10% in passenger planes reassigned to cargo transport. Schiphol is the 14th busiest airport in the world for international air cargo.

The airport said inbound volume fell 4.7% and exports dropped 11.7% compared to 2019. The three biggest destinations for cargo tonnage were Shanghai, China, Doha, Qatar, and Chicago. 

Meanwhile, Brussels Airport reported 2.2% growth in cargo to 512,000 tons as passenger traffic plunged 74%. The strongest growth, 43%, came from all-cargo aircraft thanks to the arrival of several new carriers and the use of passenger aircraft as mini-freighters, which accounted for 30% to 40% of the full freighter activity. Express business also grew a healthy 18%. 

Imports, especially from Asia, increased, while exports decreased versus the same month a year ago. The airport is also at the forefront of COVID-19 shipments.

A 19% drop in cargo delivered by truck from other airports pulled Brussels Airport’s overall volume down by 3%.

In December, normally a strong cargo month, volumes decreased 3.4% compared to an unusually strong month in 2019.

In related news, Brussels Airport Co. has named Geert Aerts to succeed Steven Polmans as director of cargo and logistics in March. Aerts spent the past 17 years as a regional operations director for CAE Inc., where he managed a network of 16 flight simulator training centers and flight schools, including at Brussels Airport. The airport operator said his experience working for a global company with many stakeholders and solving problems for customers make him an ideal candidate for the job.

Polmans will depart Brussels Airport after 10 years, during which time he was instrumental in developing a regional cargo hub for pharmaceuticals and other goods,  and digital processes for connecting the local freight community. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

RELATED NEWS:

Amazon Air opens first European hub

Air cargo market levels off in November; passenger sector sinks

Rss

Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Laredo gets its third cold storage inspection facility; a Texas trucking company is acquired by Phoenix Logistics; SE-Freight gets 30 Kenworth trucks; and Revere Plastics acquires a Mexican factory.

Laredo gets third cold storage inspection facility

Officials in Laredo, Texas, are planning to build a third temperature-controlled federal import inspection facility to accommodate cross-border produce from Mexico.

The 22,000-square-foot, 18-bay facility will be located near the Colombia Solidarity International Bridge, 20 miles north of Laredo. The project is part of a public-private partnership with Laredo-based Garros Services.

A rendering of the new $10 million temperature-controlled federal import inspection facility to be built in Laredo by Garros Services. (Courtesy: City of Laredo)

Under the partnership, Garros Services will build the $10 million facility on property it owns near the bridge, according to the Laredo Morning Times. No timetable for construction has been announced.

“The $10 million building will be substantially larger than the two current inspection installations,” said Teclo Martinez, the economic development director for the city of Laredo. 

Garros Services currently operates Laredo’s cold storage inspection facilities at the World Trade Bridge and the Colombia Solidarity Bridge.

Garros Services is a business owned by Eduardo Garza, the founder of Uni-Trade, a customs broker and logistics firm with offices in both Laredo and Nuevo Laredo, Mexico.

Garza recently has discussed adding a free-trade zone on the Mexican side of the World Trade and Colombia Solidarity bridges along the Texas-Mexico border. 

Port Laredo imported about $3.7 billion in produce from Mexico through the first 10 months of 2020, according to WorldCity. Avocados led the way, with almost $900 million in imports, followed by berries at $765 million and tomatoes at $558 million.

In December, Livonia, Michigan-based Mastronardi Produce opened a 185,000-square-foot logistics facility near its current distribution center in Laredo near the World Trade Bridge.

Leamington, Canada-based Nature Fresh Farms also opened in December a 61,000-square-foot distribution center in Laredo aimed at being a major hub for its fresh produce imports from Mexico. 

Texas trucking company acquired by Phoenix Logistics

Longview, Texas-based Sam Dunn Express (SDX), a nine-truck carrier, was recently acquired by Phoenix Logistics, an affiliate of Milwaukee-based Phoenix Investors.

Along with the acquisition of SDX, Phoenix Logistics also acquired Sam Dunn Enterprises Inc., a warehousing, logistics, distribution and fulfillment firm in Longview. SDX and Sam Dunn Enterprises will become part of Phoenix National Transportation, a newly formed regional trucking business.

“Phoenix National Transportation is an exciting new venture for the Phoenix companies; its addition is the next step in providing even more comprehensive services for our valued clients and partners,” said David M. Marks, president and CEO of Phoenix Investors. 

Phoenix National Transportation will provide over-the-road transportation services in northeast Texas and nearby states, catering to the food, beverage and alcohol industries. Sam Dunn’s facilities in Longview will be absorbed by Phoenix Logistics and become its 10th location.

SE-Freight de México takes delivery of 30 Kenworth trucks

SE-Freight de México recently acquired 30 Kenworth T680 trucks equipped with 52-inch mid-roof sleepers and Cummins X15 Euro V engines. 

SE-Freight de México recently acquired 30 Kenworth trucks. (Photo: Kenworth)

SE-Freight de México was founded in 2008 in San Luis Potosí, Mexico. The company offers cross-border transport, distribution and storage services with locations in San Luis Potosí and Nuevo Laredo, Mexico, as well as Laredo, Texas, and Canada, according to its website.

The Kenworth trucks were manufactured at the Kenworth Mexicana factory in Mexicali, Mexico.

Revere Plastics Systems acquires Mexican factory

Revere Plastics Systems recently acquired Alliance-McAlpin NY and its Mexican factory in Ramos Arizpe, Mexico.

The acquisition, which closed Dec. 30, establishes Revere’s first manufacturing facility in Mexico, according to a release. Ramos Arizpe is located 178 miles south of Laredo.

“This acquisition gives Revere an important foothold in the vibrant manufacturing region of northeastern Mexico,” Revere CEO Glen Fish said in a statement. 

The factory in Ramos Arizpe employs 180 people and operates in a 53,000-square-foot facility. Revere’s customers include automotive companies, HVAC, appliances, recreational products, metering devices and business office machines.

Revere Plastics Systems is headquartered in Novi, Michigan. The company employs about 1,000 people and operates eight manufacturing facilities in the U.S., Canada and Mexico. 

Borderlands is sponsored by Forager. More information on Forager’s offerings can be found at: https://www.foragerscs.com/.

Click for more FreightWaves articles by Noi Mahoney.

More articles by Noi Mahoney

$1B USMCA logistics park planned for Mexico

Mexican trucker barred from driving in US

Volvo Trucks’ Mexico exit concerns carriers

Image post
Reddit

Got a new truck. Can't wait to try out some of these features.

Rss

The Federal Aviation Administration has given final approval to a Massachusetts based company to conduct autonomous commercial drone flights.

In a press release Friday night, American Robotics Inc., based in Marlborough, Massachusetts, said it has been approved for operation for its Scout System drones, including for operation “beyond-visual-line-of-sight” (BVLOS) of the operator.

“With these approvals, American Robotics is ushering in a new era of widespread automated drone operations,” said Reese Mozer, CEO and co-founder of American Robotics. “Decades worth of promise and projection are finally coming to fruition. We are proud to be the first company to meet the FAA’s comprehensive safety requirements, which had previously restricted the viability of drone use in the commercial sector.”

The Scout System features three components – the Scout drone, the Scoutbase, and Scoutview. According to the company, which has been testing the system for more than four years, the Scout System incorporates everything from landing to charging to data processing.

An operator monitors and controls the drone through Scoutview, a front-end fleet management and analytics software that enables remote interaction with the system. The real-time analytics provides accurate information, allowing users to track operations at a resolution and frequency not previously possible, the company claims.

“We are very grateful for the FAA’s willingness to work closely with American Robotics over the past four years on this precedent-setting authorization. With this set of approvals, American Robotics can begin safely operating our automated Scout platform for the benefit of the energy, infrastructure, agriculture, and security market verticals, helping unlock the projected $100 billion commercial drone market,” Mozer said.

Sold as a Robot-as-a-Service platform as a monthly subscription, the Scout’s autonomous system allows a user to monitor a single drone, or multiple drones, at distances up to 1,000 miles.

The Scoutbase is the base station that serves as a communication hub for the Scout drone. It houses and charges the Scout while collecting and transmitting the data from each flight to American Robotics’ data centers.

In a letter to American Robotics on Friday, which was in response to an exemption petition filed by the company on Sept. 20, 2019, the FAA approved a waiver to the visual line of sight for aircraft operation. The waiver is good until Jan. 31, 2023.

The waiver requires the company to issue a Notice to Airmen that includes location, altitude, operational area and time and nature of the activity not less than 24 hours in advance of any drone flight and must not be made within two nautical miles of an airport.

The Wall Street Journal reported Friday night that the FAA ruling will allow American Robotics to fly the drones along pre-set routes in rural areas and at altitudes below 400 feet.

American Robotics has been testing the drones in several applications, including in agricultural uses.

“Our interest in American Robotics’ technology started with the desire to have a drone imagery solution that was reliable, scalable, and executed with minimal human resources,” said Lance Ruppert, director of Agronomy Marketing and Technology at Growmark, Inc., a leading U.S. grower cooperative. “This technology, along with the FAA approvals to operate it without humans on the ground, is key to making drones a widespread reality in our industry. This is a game changer.”

Lisa Ellman, partner and chair of the Global UAS Practice at Hogan Lovells, and executive director of the Commercial Drone Alliance, said the FAA approval is an important step forward for the drone industry.

“The commercial drone industry is growing quickly and providing significant benefits to the American public but enabling expanded operations beyond visual line of sight is critical for the industry to truly take off,” she said. “Automated BVLOS operations are particularly important to opening the commercial sectors to the drone economy, including the agriculture and industrial verticals. Key to these operations is the use and FAA acceptance of new and innovative safety technologies, such as detect and avoid (DAA) sensors and software-enabled automation. American Robotics’ groundbreaking and exciting FAA approval is an important and significant step forward for the commercial drone community as a whole.”

Click for more FreightWaves articles by Brian Straight.

You may also like:

The FreightWaves Top 10: Bankruptcies, capacity concerns, protests and Trevor Milton’s departure

Maximizing trailer utilization: Why is it so hard?

Looking back at the Year of the Truck Driver

Rss

Chart of the Week:  Outbound Tender Volume Index – USA, Personal Consumption Expenditures – Durable Goods SONAR: OTVI.USA, PCE.DG

Consumer spending on durable goods expanded dramatically in the second half of 2020, showing a significant connection to FreightWaves’ national Outbound Tender Volume Index (OTVI). Prior to the pandemic, this connection was not as clean thanks to a healthier mix of manufacturing and industrial activity. The biggest question now is what happens if and when this spending recedes? First, let’s define personal consumption of durable goods to put it in context. 

Personal consumption expenditures for durable goods measures spending on products such as appliances and furniture. Durable goods spending accounted for 13% of total consumer spending in the U.S. in 2019. Spending on nondurable goods such as food and clothing accounted for 23%, while services spending was the bulk at 64%.

Over the past three years, durable goods spending has fluctuated. In 2017 annual spending grew 4.5% year-over-year and in 2018 it grew over 5% per month, while 2019 saw it slowing back to 3.5% on average. From June through November 2020, spending on durable goods averaged nearly 13% annual growth each month. 

Trucking tender volumes, measured by the OTVI, also saw an unprecedented increase in 2020, jumping 46% from Memorial Day to Labor Day. The OTVI accounts for both accepted and rejected tenders and is designed to show the quickest changes to truckload demand and not necessarily a good proxy for loads moved in a tight market like the current one. Taking rejected tenders out of the index, accepted volumes increased nearly 13% from Memorial Day to Labor Day, averaging over 21% higher than the previous year.  

There is not a one-to-one connection between personal consumption and freight volumes. Nondurables like food and clothing as well as unfinished goods and construction materials make up a decent portion of volumes in the U.S. The industrial sector, largely thought to fuel freight volumes in the past, is still recovering from the initial hit that occurred this past spring.

Industrial production continues to recover, but continues to underperform pre-pandemic levels. Retail growth has picked up the slack. Chart: SONAR – Outbound Tender Volume Index, Retail Sales, Industrial Production – USA

Freight volumes tend to lead consumption as companies order inventory in front of expected demand. Unlike capital goods and larger equipment orders, most durable goods are stored in warehouses and available for immediate distribution upon sale. Consumers have grown accustomed to quick fulfillment times over the past decade and companies with long order cycles risk missing out on sales.

In 2020 there was a combination of fulfillment and pull forward as companies struggled to maintain inventory levels for many of the goods thanks to the unexpected jump in consumer spending and production loss due to the virus. With transportation capacity becoming exceptionally tight and sourcing problems on the rise, there was also the need to order more than currently needed to make sure there were no missed sales opportunities. 

Once the pandemic subsides, consumer spending on durable goods is expected to fall as more money is spent on services. Some of this should be offset as the industrial sector increases activity, but the sense of urgency that has pushed transportation rates to new highs is typically not as applicable to this type of freight. 

Volumes may survive the reduction in consumer spending on durables, but the existing tightness will inevitably subside as the retail freight gives way to other types. Import volumes are expected to remain strong in the near term, but there are still many questions around consumer spending patterns as case counts decline. 

Preparing for a gradual return to normal as temperatures warm may be the best strategy. Cases seem to decline in the warm season and a vaccine will help accelerate this. The U.S. economy depends on services to be healthy and this current environment, though good for many trucking companies and retailers, is not sustainable in the long run. The government cannot continue to print money to keep everyone apart.   

It would be hard to imagine the current tight transportation market persisting throughout the year. Transportation spend would cannibalize budgets, forcing shippers to reduce costs in other areas and inevitably leading to a rapid decline in freight volumes. All parties should be expecting a moderating trend on the goods side this year, to say the least.

About the Chart of the Week

The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on FreightWaves.com for future reference.

SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time.

The FreightWaves data science and product teams are releasing new data sets each week and enhancing the client experience.

To request a SONAR demo, click here.

Image post
Reddit

Saw this today just outside the Hammond, LA Petro. Managed to roll his truck at the roundabout.

Image post
Reddit

The fuck is wrong with people

Rss

The Daily Dash is a quick look at what is happening in the freight ecosystem. In today’s edition, a federal watchdog has said that as many as 780,000 truck driver medical examinations may not be in the federal database. Plus, freight rates continue to surge and the Federal Motor Carrier Safety Administration plans another study on providing more sleeper berth flexibility.

Missing medical records

A seven-month outage of a medical examiner registry maintained by the Federal Motor Carrier Safety Administration (FMCSA) has resulted in approximately 780,000 driver examinations potentially going missing from the database, a federal watchdog has revealed.

John Gallagher has more on the impact: 780,000 driver medical exams could be missing from FMCSA database

Surging freight rates

U.S. freight rates surged in December, setting the stage for a powerful pricing tailwind in 2021, according to a monthly index published by freight audit and payment firm Cass Information Systems Inc.

Mark Solomon details the numbers: ‘All gas. No brakes’

More rest flexibility possible

Just months after the FMCSA added a new sleeper berth provision, the agency is looking at even more flexibility for drivers.

John Gallagher explains what FMCSA is proposing: Regulators propose more sleeper berth flexibility

New rules

The ABC provisions of the Dynamex decision in California can be applied retroactively, according to a decision handed down by the California Supreme Court.

John Kingston explains the impact: Dynamex ABC test can be used retroactively in worker classification litigation

Stories we think you’ll like:

Commentary: Amazon isn’t going into 3PL business; it’s already there

CDL fraud could rise under relaxed requirements

Online retailers pay almost double in logistics costs

Midwest furniture retailer Loves goes Chapter 11, blames Penske Logistics

Retailers turned to scanning technology to meet e-commerce explosion

FMCSA names 25 truck drivers to new safety panel

Price not supply driving rejection rates lower

Demand keeps capacity tight – FreightWaves NOW

Tiny electric delivery vans occupy former home of hulking Hummer H2

Did you miss this?

Navistar International Corp. (NYSE: NAV) said Wednesday it will lay off 250 employees as part of a plan to close and sell its Melrose Park, Illinois, facility to an industrial park developer. Another 250 workers will transfer to other facilities.

Alan Adler explains why the plant is closing: Navistar will sell Illinois facility, lay off 250 workers

Hammer down, everyone,

Brian Straight

Managing Editor

Click for more FreightWaves articles by Brian Straight.

You may also like:

The FreightWaves Top 10: Bankruptcies, capacity concerns, protests and Trevor Milton’s departure

Maximizing trailer utilization: Why is it so hard?

Looking back at the Year of the Truck Driver

Image post
Reddit

Image post
Reddit

Any relay drivers in here ?

Rss

Prologis facility in Coventry, United Kingdom

Logistics real estate titan Prologis Inc. (NYSE:PLD) said Thursday that it has named Dan Letter to the newly created post of global head of capital deployment, a move that reflects the growing complexity of the company’s business and its unconventional organizational reporting style.

Letter, who assumed the role on Jan. 1, takes on a large part of Prologis’ chief investment officer’s responsibilities. Letter will report to Eugene F. Reilly, the company’s current CIO. Reilly and Letter will continue to collaborate on investment projects. However, Reilly will devote more of his time to supervising all of the company’s regional presidents across a 19-country network. Unlike most companies where the regional heads report to the CEO, the ProLogis’ regional chiefs have a solid line to Reilly, not to Chairman and CEO Hamid R. Moghadam.

The new role also underscores the need to devote “more horsepower” to the investment side of Prologis’ business, according to Reilly. As Prologis’ business becomes more complex and far-flung, the financial and operating demands on the company have dramatically escalated, Reilly said. This was especially true in 2020 as companies sought out more logistics real estate to support surging e-commerce growth.

For example, Prologis plans to move more aggressively into urban fulfillment through its Urban Last Touch program, which has about 100 transactions under its belt in the past two to three years. Those projects, which typically involve repurposing an aging structure into a final-mile fulfillment facility to serve densely populated urban areas, are expensive and intricate to execute. Managing those types of projects require more intellectual bandwidth, Reilly said.

In 2020, Prologis completed $25 billion of investment activity. Of that, $17 billion was earmarked for mergers and acquisitions, it said.

In 2004, Letter joined developer AMB Property Corp., which seven years later acquired Prologis in an $8.7 billion deal that created the present-day behemoth. Prologis is the world’s largest owner, developer and manager of logistics real estate, with 976 million square feet under management.

Rss

Your fleet is only as good as the drivers you hire. You can invest in the latest and greatest vehicles and trucking technologies, but it will mean nothing if you’re unable to onboard and retain competent drivers. 

This is especially important given the current competitive hiring landscape and the shortage of drivers. In its most recent report, the American Trucking Associations estimates that by 2028 there will be a shortage of 160,000 drivers in the US trucking industry if the current trend continues.

Rss

[caption caption="According to a McKinsey & Co. survey, 60 percent of US consumers who used buy online, pick up in store (BOPIS) in 2020 will continue to do so after the COVID-19 pandemic subsides. Photo credit: Michael Vi/Shutterstock.com."][/caption]This story appears in the print edition of the Jan. 4, 2021, Journal...

Rss

ship fuel

One year ago — which seems like an eternity ago — no one in ocean shipping was talking about COVID. They were talking, ad nauseum, about fuel. About a massive spike in fuel prices due to a regulatory “tsunami” that would hammer liner companies’ 2020 financial results, inflate the cost of imported goods and steer winners and losers among shipping stocks.

It didn’t happen, courtesy of COVID. Instead, the price of marine fuel collapsed. Shipowners and cargo shippers actually saved money on fuel in 2020.

The trend this year is in the opposite direction. The price of marine fuel is coming back. And so-called “scrubbers” — equipment allowing ships to legally burn cheaper, high-sulfur fuel — are starting to pay off much more than before.

Rising marine fuel prices will mean rising costs for cargo shippers and ship operators. A higher scrubber advantage will mean more upside for the shipowners like Star Bulk (NYSE: SBLK) that installed them on a large scale. 

American Shipper interviewed Richard Joswick, head of oil pricing, refining and trade flow analytics at S&P Global Platts, to put 2021’s marine fuel and scrubber outlook into perspective.

Crude pulls up marine fuel

“The biggest driver, of course, is what’s going on with the overall level of the oil market,” Joswick explained. “The crude price is going up. That’s what’s responsible for the increase in bunker [marine] fuel prices more than anything else.”

The IMO 2020 rule mandates that ships without scrubbers cannot burn 3.5% sulfur fuel known as high sulfur fuel oil (HSFO). They must burn 0.5% sulfur fuel known as very low sulfur fuel oil (VLSFO) or 0.1% sulfur marine gasoil (MGO).

According to data from Ship & Bunker, the price of VLSFO was down to $318.50 per ton on Nov. 2, 2020. The price of HSFO (specifically IFO380 bunkers) on that date was down to $273.50/ton. The spread had shrunk to a mere $45 per ton.

Between Nov. 2 and this Thursday, the price of VLSFO increased 43%. The price of HSFO increased by 32%. The spread between the two widened by 112%, to $95.50 per ton.

fuel chart
(Chart data from Ship & Bunker. Note: Prices are average for top 20 global bunker hubs.)

How fuel price flows to shippers

During Q2 and Q3 2020, container lines lowered Bunker Adjustment Factors (BAFs) in shipper contracts to account for lower prices at the pump. As carriers saw revenues from spot deals surge, their revenues from contract deals fell due to lower BAFs.

“Shippers should begin to prepare for future BAF increases,” warned Sea-Intelligence CEO Alan Murphy in a report this week.

“The carriers’ different BAF structures mean they do not all adjust BAFs at the same time,” he continued. “Some do it monthly — usually based on the monthly average fuel price with a two-month time lag — and some do it quarterly.”

Because of the lag effect, Murphy sees the recent fuel price rise affecting monthly BAFs by March and quarterly adjustments starting in April. “BAFs stand to increase significantly for Q2 2021,” he cautioned.

Cargo shippers are already facing widespread delays and uncertainties with transit times, premium charges tacked onto previously negotiated contract rates, historically high spot pricing and expectations for substantially higher annual contract pricing. Higher BAFs this year would add insult to injury.

More scrubber installations?

When the HSFO-VLSFO spread fell below $50 per ton last year, the rationale waned for installing scrubbers that each cost $1 million-$2 million. Now that the spread is back up near $100, shipowners might be tempted to look at scrubbers yet again.

S&P Global Platts’ indices for Capesizes (dry bulk vessels with capacity of around 180,000 deadweight tons or DWT) reveal the scrubber effect on the bottom line.  

According to the Platts Cape T4 Index, on Nov. 2, the day the HSFO-VLSFO spread was down to $45 per ton, Capesizes with scrubbers saved $1,121 per day versus non-scrubber Capesizes because of their ability to consume cheaper fuel. As of Wednesday, Capesizes with scrubbers saved $2,553 per day.

Over the past 10 weeks, the profit advantage of scrubber-equipped Capesizes has jumped by $1,432 per day or 128%.

(Chart data from S&P Global Platts)

According to Joswick, “With the spread near $100 a ton, people will be asking: ‘Is that enough to add a scrubber?’ My guess is that it’s probably not enough yet to put an older ship into dry dock and install a scrubber. But it might be enough if you’re building a new ship.”

Tanker, bulker scrubber use on rise

One might have thought the COVID pandemic and the collapse of the fuel spread would have been the death knell for scrubbers. It temporarily slowed the train, but scrubbers are alive and well. In fact, scrubber interest increased over the course of 2020.

According to data from Clarksons Research, 36% of very large crude carriers (VLCCs, tankers with 200,000 DWT-plus capacity) now have scrubbers, plus another 4% due for retrofits. Of VLCC newbuilds on order, 42% will have scrubbers. Altogether, including existing and ordered ships, 40% of VLCCs are set to use scrubbers. A year ago, the percentage was 35%.

For Capesize dry bulk ships, Clarksons data shows 39% of on-the-water ships with scrubbers, plus another 2% set for retrofits. Of Capesizes on order, 63% will feature scrubbers. Including existing and new ships, 42% of Capesizes are set to have scrubbers. A year ago, the percentage was 34%.

More large box ships opt for scrubbers

The container-shipping industry offers the most acute example of scrubbers’ enduring appeal.

Alphaliner reported orders for 25 ultra-large containers ships in Q4 2020. Only five of those ships opted for liquefied natural gas. The other 20 — orders for OOCL, ONE and MSC — opted for scrubbers.

According to the Clarksons data, 65% of ultra-large container ships on the water (defined by Clarksons as having 15,000 twenty-foot equivalent units of capacity or more) now have scrubbers. Another 6% of the fleet will be retrofitted. Of newbuilds on order in this category, 68% will be scrubber-equipped. Including existing and new ships, 70% of the larger container ships are set to have scrubbers. A year ago, the number was 60%.

This trend raises the question of whether cargo shippers are paying too high a BAF. What if the BAF is based on the VLSFO price but the container ship is using a scrubber and actually burning cheaper HFO?

According to Murphy, “We might begin to see a rekindling of the discussion as to whether BAF formulas should take the scrubber-enabled vessels into account — especially in the Asia-Europe trade, where many vessels have had scrubbers installed.”

Factors affecting fuel spread

Scrubbers’ business case has improved, but not as much as it could have.

Joswick noted that today’s VLSFO price and HSFO-VLSFO spread would be higher if not for COVID restraints on air travel, which have recently intensified. “Jet fuel demand is very weak with the new lockdowns. It’s not likely to get back to normal in 2021. That’s for sure.”

Indirectly, this dynamic allows for more VLSFO supply, which puts downward pressure on pricing.

“When you lose demand for jet fuel, you can take some of the molecules that would have gone into jet fuel and put them in your diesel pool. When you do that, you now have plenty of diesel to take some of the heaviest components with higher boiling points and put those into your VLSFO,” Joswick explained.

The VLSFO price and the HSFO-VLSFO spread should increase with the recovery of air travel and demand for automotive fuels.

Meanwhile, HSFO could face downward pricing pressure in an economic recovery scenario, another plus for scrubbers.

Refinery utilization is up from its COVID nadir in Q2 2020, but it’s still low. “This is still a very difficult time for refiners,” said Joswick. “They are still running at reduced operating rates, which means they have plenty of spare capacity.” At these reduced capacity levels, refineries can economically convert HSFO into lighter products, he noted.

When refinery utilization ultimately ramps up to high levels, the refining process will create more HSFO, which will need to be converted into lighter products using more expensive means. This should put downward pressure on HSFO pricing, which would further widen the HSFO-VLSFO spread and further increase shipowner savings from scrubbers.  

2021 pricing outlook: Up

“Brent went from around $40 per barrel in October to around $55 per barrel, which translated dollar-for-dollar into the price of bunker fuel. The big question is what will Brent do next,” said Joswick.

“A number of people out there are getting bullish on the price of Brent. But if you look at the supply-demand fundamentals, they’re still soft for Q1 2021. So, there’s some downside risk right now as people are enthusiastic. Fundamentals should get stronger [after Q1 2021]. There’s likely some upside risk later in the year — assuming the vaccines work.”

The implication is that marine fuel prices will rise in 2021 and the spread could widen. “But we’re not talking about a repeat of what we saw earlier,” Joswick stressed.

In January 2020, the spread surged to $315 per ton, more than triple current levels. A Capesize with a scrubber was earning $11,800 per day more per day than a Capesize without one.

“We are not expecting anything like that anytime soon,” emphasized Joswick. Click for more FreightWaves/American Shipper articles by Greg Miller 

MORE ON SHIP FUEL AND SCRUBBERS: How IMO 2020 turned into the Y2K of shipping: see story here. Coronavirus is decimating IMO 2020 scrubber savings: see story here. Book review: ‘IMO 2020: A Regulatory Tsunami’: see story here. 

Rss

[caption caption="More than half of surveyed retailers are investing in in-store fulfillment. Photo credit: Shutterstock.com."][/caption]Facing rising delivery costs, more than half of US retailers in a recent survey say they are increasingly investing in fulfillment automation solutions and new fulfillment centers. According to a survey conducted by supply chain technology firm...

Rss

Get Into the Chrome Supply Warehouse Truck of the Month Program

In this episode we talk about Chrome Supply Warehouse’s Truck of the Month Program. Learn how you can submit your cool truck for the contest and the benefits to drivers for doing so. Each month Chrome Supply Warehouse holds their Truck of the Month Contest allowing their fans to choose the coolest truck of the month based on submissions received, get your truck into the contest. Chrome Supply Warehouse offers custom parts for trucks and many specials for truckers. You can learn more at www.chromesupplywarehouse.com

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Rss

Featured Truck of the Week 567 Stretched Peterbilt

Today’s truck is a cool 567 stretched Peterbilt brought to you by the Big Rigs Truck Show. Each week Bruce picks a cool truck from the many truck shows he attends. Hearing about them is one thing, seeing them is another. Check out this cool ride!

Check out the video on this featured truck by clicking here

This episode is sponsored by Groupe Trans West is looking for professional teams to operate out of their Mississauga terminal with excellent employment benefits between Toronto Ontario and California. Find out more at www.groupetranswest.com  or call recruiter Mike Hahn at 416-606-8296

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com

 

Image post
Reddit

Yeaaaah, fuck that noise. This ain't a garbage truck.

Rss

U.S. freight rates surged in December, setting the stage for a powerful pricing tailwind in 2021, according to a monthly index published by freight audit and payment firm Cass Information Systems Inc. (NASDAQ:CASS) and released on Thursday.

The Cass freight expenditures index jumped 13% year-on-year, according to the index, which is based on about $28 billion in annual freight payments that Cass audits. The freight expenditures subindex, which measures changes in pricing action, rose 6.8% sequentially in November on a seasonally adjusted basis, according to the index. The shipments subindex rose 1.1% sequentially on a seasonally adjusted basis.

Rates were on the rise throughout December, in line with what has been a powerful spike in noncontract, or spot, prices throughout the second half of 2020. Spot rates had started to decelerate when President Donald Trump’s signing of federal stimulus legislation on Dec. 27 caused the market to gap higher, said ACT Research, which analyzes the monthly Cass data.

The rapid increase in prices is most notable in Cass’ “implied freight rates” dataset, which divides expenditures by shipments. A positive implied rate indicates that rates are growing faster than shipments. In December, the implied rate rose 6% year-over-year, doubling the growth in November, according to the data.

On a nonseasonally adjusted basis, the shipments subindex rose in December by 6.7% year-on-year, picking up steam from the 2.7% year-on-year gain in November, according to the data. Based on a two-year “stacked” basis, which averages out the monthly activity for the period, the subindex is 1.8% lower than in December 2018, said Tim Denoyer, ACT’s lead research analyst and the report’s author.

Cass combines data from truckload — which accounts for half of the indexes — railroad, less-than-truckload (LTL) and parcel, among other modes.

The current upcycle, which began in the May-June period, “still has several powerful growth tailwinds” following a two-year freight downturn, Denoyer said. The recent injection of around $900 billion in stimulus, along with the prospects for more federal aid with Democrats soon to be in control of the executive and legislative branches, will boost GDP growth and, by extension, freight volumes and pricing, he said.

ACT recently raised its 2021 GDP growth forecast to 5.1%, following a 3.7% contraction in 2020.

With the expenditures subindex hitting record highs, the “transition from an early-cycle environment to mid-cycle environment is underway,” Denoyer wrote. The headline of the ACT report seemed apropos under the circumstances: “All gas. No brakes.”

The improvement in the shipments subindex can be tied to improving trends in the rail sector, especially in intermodal where volumes had a very strong finish to the year, ACT said. The volume gains are expected to carry over into 2021 as U.S. retailers push to replenish depleted inventory stocks and containership lines reduce their number of “blank” (or canceled) sailings ahead of the Lunar New Year, which runs Feb. 12-26 and when virtually all Chinese factories close and workers scatter to their respective home cities and provinces, Denoyer said.

Cass’ Truckload Linehaul Index, which measures shifts in per-mile rates independent of fuel and add-on charges known as “accessorials,” rose 1.1% in December on a year-on-year basis. This followed a 0.6% gain in November, the first year-over-year increase in 15 months. However, truckload rates are quickly firming as evidenced by the 6% implied rate increase in December, ACT said.

Rss

[caption caption="US truck shippers doubled their spot market usage from approximately 20 percent of shipments historically to 40 percent in December, according to data from transportation consultant Breakthrough. Photo credit: Shutterstock.com."][/caption]US surface transportation shippers doubled their dependence on securing capacity via the spot market in December largely due to demand...

Rss

A startup Midwestern furniture retailer has filed for Chapter 11 bankruptcy protection less than a year after it began hiring management staff, and it is mostly blaming Penske Logistics for the company’s collapse.

While Pennsylvania-based Penske Logistics isn’t the largest creditor of the company — it’s fifth on the list of the largest 20 unsecured creditors — it is the company that Loves appears to fault for its collapse, though a reading of the bankruptcy petition reveals other issues the company had in its short life.

It also reveals how a startup retailer ran into a problem that many other people looking for floor space can sympathize with: a tight market for warehouses to put their merchandise.

The case was filed earlier this month in the U.S. Bankruptcy Court for the Eastern District of Michigan. A spokesman for Penske said the company already had filed suit against Loves in Oakland County Circuit Court in Michigan but that it had no further comment on the allegations against it in the Loves bankruptcy filing. FreightWaves was unable to obtain the Penske filing by publication time. 

The details of the difficulties of Loves and the strained relationship between the retailer and Penske Logistics are contained primarily in an appendix to a filing made by Mack Peters, who describes himself as a “major shareholder” of MP Furniture, a furniture retailing consulting firm. He also brokers deals between furniture manufacturers and retailers. Peters was hired by Loves to make his submission.

The Peters review of the short life of Loves Furniture says a company called US Assets, which is 94% owned by Jeff Love, established the Loves Furniture retailer by setting up shop primarily in spaces abandoned by Art Van, a shuttered furniture retailer. “Loves was created at the kitchen tables of its first employees,” the Peters filing says.

The bankruptcy documents recap how Loves obtained financing and moved into former Art Van outlets, many of which are described as being in less than stellar condition. It went into business in a big way, ordering furniture from 81 different manufacturers at a “landed cost” of about $60 million, receiving about $38 million of that inventory. “The rest was either canceled by the manufacturer due to non-payment or sold to another retailer,” the Peters filing says.

Things went well in the beginning but inventory problems resulted in “frustrated customers cancel[ing] orders” and poor reviews on social media. This was not all because of Penske; Peters describes Loves inventory and logistics system as “defective” and “staggeringly expensive.”

Loves has paid about $8.3 million to Penske with about $1.8 million listed as the outstanding debt in the list of top creditors. But Loves stopped paying at the end of December because of a cash crunch and Penske severed all ties and stopped making deliveries. The Penske suit was filed Jan. 6.

The warehouse squeeze can be seen in Peters saying Loves though it had space lined up, lost it to somebody else and didn’t actually have its own warehouse space until Oct. 1. But it continued to grow; it opened up its final new store as recently as Dec. 19, less than a month ago. 

With inadequate space to store its own merchandise, “Loves sought a vendor to manage its warehouse and to provide cartage services for goods moving from the warehouse to the stores,” the Peters filing said. It chose Penske Logistics and the relationship started in July.

The lawsuit says the first problem is that Penske Logistics “insisted” on using its own warehouse management system rather than Storis, a software system used in the furniture industry. Penske also leased space for Loves at a warehouse in Burton, Michigan, which, the lawsuit says “quickly became clear … was not large enough to hold all of Loves incoming orders.” Loves contracted with a company called Evans Distribution Systems for additional space at an Evans warehouse in Michigan. 

The heart of the dispute, laid out after that introduction to the point where Loves started operating, are some of the charges which a Penske Logistics spokesman said the company “strongly refutes” before saying it could not comment further. 

The lawsuit says Evans was able to take in orders and move inventory out to the Loves stores.  “Although Evans had no issues in doing so, Penske had trouble identifying goods and sent goods to the wrong stores so that one store would get two of everything and another store received no goods,” the lawsuit said. The merchandise would then be returned to the warehouse, put back into inventory and then sent out to the correct store, Peters said, slowing the delivery process. 

Half-filled trucks were sent out at times, according to Peters. There was no coordination between the Penske Logistics system for the Burton facility and the Evans facility. “As a result hundreds of deliveries were delayed or ultimately canceled because the merchandise needed to fulfill a customer’s order could not be located within the Burton warehouse,” Peters writes.

As a result of this confusion, “sales fell significantly in light of Loves’ difficulty locating, obtaining and delivering merchandise to its customers,” Peters writes. 

One online headline from a Michigan TV station, in the heart of Loves’ service area, said that “customers of Loves Furniture report lengthy delivery delays,” while another asked, “Will Loves Furniture’s brief story end in heartbreak?”

Peter said sales of the chain in four months totaled about $40 million.

More articles by John Kingston

Drilling Deep: Change in bankruptcy law may save some trucking companies

Chapter 7 death knell for smaller companies now has shortcut to Chapter 11 survival

Rand McNally, despite reports, is profitable and thriving: company chairman

Rss

Driver Pride with Rosedale Transport

Bruce chats with Giovani a driver with Rosedale Transport about his start in trucking and what it takes to be a professional driver on the road today. Find out what it’s like to drive with Rosedale and be part of this professional community. Rosedale Transport offers career opportunities for truck drivers with their large network. You can learn more at www.rosedalegroup.com

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Image post
Reddit

Same gig, new rig

Image post
Reddit

Seeing things like this makes me thankful for my pup trailer lol

Rss

[caption caption="Reverse logistics costs can amount to up to 59 percent of the original sales price of an item. Photo credit: Shutterstock.com."][/caption]With US holiday returns forecast to hit record levels this season, parcel providers and shippers are creating new spots to pick up and drop off returns, and in the...

Rss

A new year means new changes for minimum wage laws throughout the United States. From state to state, employers are facing updates to minimum wage increases that may affect their employee base. In California, where more than 137,000 trucking companies (most of them small) operate, trucking companies are following their own changes that took effect on January 1st that impact both nonexempt and exempt employees.

California’s statewide minimum wage is now $14 per hour for employers with 26 or more employees and $13 per hour for employers with 25 or fewer employees. But some local ordinances have a higher minimum wage than the state law, and some local regulations eliminate any distinction in minimum wage based on employer size. This moves the state and the companies inside it one step closer to its goal of a $15 per hour minimum wage.

In addition to California’s statewide minimum wage increases, many cities and counties have enacted their minimum wage laws that go beyond state requirements. If a local minimum wage rate is more substantial to employees than the state-mandated minimum wage rate, employers must comply with local law.

Local, State, and Federal Minimum Wage Differences

Most employers in California comply with both the federal and state minimum wage ordinances. Also, local cities and counties are allowed to enact minimum wage rates. Many different cities have recently adopted laws that establish a higher minimum wage rate for employees working within their local areas.

The effect of this coverage by various government sources is that when there are conflicting requirements in the mandates, the employer has to follow the stricter standard, or most beneficial to the employee. Since California’s current ordinance requires a more significant minimum wage rate than the federal law, all employers in the state subject to both laws have to pay the state’s minimum wage rate unless their employees are exempt under state law.

Similarly, suppose a local entity, such as a county or city, has adopted a higher minimum wage. In that case, employees have to earn the local wage where it is higher than the state or federal minimum wage levels.

So, What Does This Mean for the Trucking Industry?

Some 25,000 truck drivers haul goods from Los Angeles and Long Beach’s shipping ports to nearby storehouses and rail years. From there, the goods are moved to U.S. retailers and manufacturers. Since 2011, nearly 1,000 drivers in California have been filing complaints against trucking companies for workplace violations, including wage disputes.

Issues like these and other workplace violations all impact a company’s Trucking insurance rates. Trucking companies need to ensure they are doing what they must to stay compliant with minimum wage increases, insurance needs, workers’ compensation, and more. While truckers make more than the minimum wage, there are other part-time employees within a trucking company who might not make the minimum wage, but by law will have to begin now.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck, and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

The post Minimum Wage Increases on January 1st, 2021 appeared first on Western Truck Insurance Services.

Rss

hauling livestock

If you are a truck driver looking for a new haul, think about carrying livestock. This is a specialty niche for people with a lot of patience who don’t mind the good, the bad, and the smelly of working with live animals. If you have experience on a farm or ranch and are considering trucking, hauling livestock could be a great fit. Hauling livestock has many similarities to other types of trucking, but there are also some big differences based on the type of freight. So, before you get started, here are a few things to keep in mind.

1. Types of Livestock Drivers Haul

When many people think of hauling livestock, there’s a good chance that they think of cows or chickens. Cattle do make up the largest part of the livestock transportation industry, but livestock haulers can carry anything that is live freight. Some common loads are pigs, goats, sheep, and even bees. Some livestock haulers train to carry high-value livestock such as show horses. Drivers are working closely with the animals. So, it’s common to see drivers with experience on a ranch or who have spent plenty of time in the livestock industry.

Animal care is a huge part of transporting livestock, and drivers take their jobs very seriously. Patience and attention to detail are huge for livestock haulers. As anyone who works with animals knows, getting frustrated with them rarely makes things go faster. It will only stress the livestock. Livestock drivers also need to be patient behind the wheel and drive defensively. Harsh stops or turns can easily injure or stress livestock. Regulations for carrying livestock vary somewhat by state. So, drivers must be detail-oriented to ensure compliance for every load. 

2. A Whole New World of “Touch Freight” and Cleanup

Hauling livestock is unlike any other type of freight for a lot of reasons. One of the big ones? Well, let’s just say that sanitation is incredibly important, and cleaning out a livestock trailer is a little different than cleaning out your trailer after a dry van or reefer load. Drivers must completely sanitize trailers after every load or they could infect the livestock in their next load. 

Dustin Nesbitt hauling livestock

Dustin, livestock hauler for Nesbitt Transportation

We talked to Dustin, a cattle hauler and co-owner of Nesbitt Transportation, and asked him if he had any advice for drivers considering hauling livestock. He shared this:

“Someone who is going into hauling cattle needs to be patient. It’s not like driving freight. You need to give yourself extra time around other vehicles because it actually takes longer to stop because it’s a live load. Also need to be patient with the animals and have your head on a swivelalways protect yourself. Cattle’s attitudes can change in a split second and go from cooperating to they want to kill you so always keep your eyes on the animals when loading and unloading.” 

Agfax adds several additional tips for transporting cattle. According to their website, a thorough pre-trip inspection is even more important for livestock haulers. Delays for maintenance or repairs can cause extra stress on the animals, especially if there are heat or chill concerns. Agfax also recommends that drivers master livestock sorting. Within any type of livestock haul, drivers should transport similar animals together. For example, large cows should be transported with other large cows, not cows that are small or weak.

3. Livestock Truck Drivers Earn More

loading livestock

While livestock haulers often have to meet specific requirements beyond a typical CDL driver, they are also well compensated for their work. Livestock haulers are typically considered specialty hauler, so pay is increased. That said, these drivers earn higher pay for good reason!

Livestock haulers must maintain additional certifications that show their understanding of the risks of hauling live animals. In addition, owner operators will need to purchase specific equipment. The type of trailer that drivers need depends on the type of animals and the distance of the haul. No matter the exact specialty, that equipment is not cheap.

In addition to the cost of equipment, livestock hauling takes time and doesn’t allow for shortcuts. For example, biosecurity is ultimately the truck driver’s responsibility, and each buyer or seller may have their own protocols. Sanitation includes disinfecting the trailer but also guarding against cross-contamination from the driver. Livestock haulers must maintain sanitary practices when moving between locations or loading and unloading livestock so they don’t transmit infection. This might seem like too much hassle for some drivers, but for livestock haulers, it’s all part of a day’s work.

cattle hauler

Find a Livestock Truck Driver Job

We match you with a job based on your professional qualifications and personal lifestyle preferences. Create a free driver profile with Drive My Way to receive your job matches.

Find a Job Today

The post Hauling Livestock: 3 Things to Know appeared first on Drive My Way.

Rss

Cognitive Testing with DriverCheck

Have you ever wondered how cognitive testing can help your team? We talk with the team at DriverCheck about cognitive testing and how it helps improve safety in the workplace. DriverCheck is a leader in drug and alcohol, cognitive, and workplace testing helping employers have a safe workplace for their staff. Learn how DriverCheck can help you be safe at www.drivercheck.ca

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com

Image post
Reddit

Sometimes they have to pull you out...

Image post
Reddit

I know I’ve seen this guy catch some flack before, but wow.

Rss

Welcome to the WHAT THE TRUCK?!? newsletter. Here we’ll get you caught up on all things WHAT THE TRUCK?!? and bring you up to date on the world of freight as we see it. Like the newsletter? Forward it to a friend. Enjoy! — Dooner

2021 best fleets to drive for

Warner Bros/DC

Return to sender — 2021 and the word “best” may be strange bedfellows in light of the absolute mess this year has been so far, but that doesn’t mean you can’t improve your circumstances (or celebrate them if you work for one of these carriers). 

You’ve made the list — The TCA and CarriersEdge have named 20 carriers to their 2021 Best Fleets To Drive For list. With capacity tight at just under 1 in 4 contracted loads being rejected, combined with a shortfall of half a million jobs in the sector, now may be a great time to jump in a new truck with one of these top fleets.

“Even in the midst of a pandemic these fleets are focused on creating a great workplace experience for all their drivers, and with an average satisfaction rate over 90% their drivers clearly appreciate those efforts.” — CarriersEdge CEO Jane Jazrawy

Who’s on it — Four new carriers have made the cut this year along with 16 incumbents from last year’s list.

Decade of dominance  Grand Island Express has made the list for 10 consecutive years!

More on FreightWaves Radio This Saturday 3-5 p.m. ET on FreightWaves Radio on SiriusXM’s Roaddog Trucking Channel 146 I’ll catch up with CarriersEdge CEO Jane Jazrawy to break down the list.

Keep the return, you filthy animal

Warner Bros/DC

Record ecommerce = record returns — Remember that 75-day peak season we talked about? It blew away the 2.4% increase in sales that analysts were projecting as total retail sales grew 3%, according to Mastercard SpendingPulse. UPS Inc. said last Thursday that it expected returns traffic to rise 23% by the end of last week. That amounts to 1.75 million returns each weekday. 

Just keep it — Returns are the freight that nobody wants including retailers themselves. At a cost of $10-$20 per item (not including freight), online stores are telling shoppers to keep their returns if they don’t make equitable sense to their cost algorithms. 

The true cost — Each year Americans return about 3.5 billion products, and 5 billion pounds of returned goods end up in U.S. landfills, according to Optoro. However, this is a problem that will only get worse as returns in 2020 were 70% higher year-over-year, according to Narvar.

Online order returns comprise 75% of the total returns” — Locus Robotics CEO Rick Faulk

Consumers demand it — 73% of shoppers surveyed said the overall returns experience impacts their likelihood to purchase from a retailer again, a UPS study found.

The circular economy — On our Jan. 22 episode of WTT?!? we’ll talk to Claudia Freed, CEO of EALgreen, about how donations and other methods can help mitigate the impact of returns.

Over the edge … almost

Close call — Traffic was blocked for hours in DeKalb County, Georgia, after a truck struck a chain-link fence, causing it to hang precariously over eastbound Highway 78. Traffic crews uprighted the truck. Fortunately, there were no injuries to report.

Straight for the feels

Lollypop Farms

Lost at the rest stop Over the course of my family road trip between Chattanooga and Boston, we had to take our cat out of its carrier in order to clean up a mess it had made. My No. 1 fear at the time is something one lone trucker recently experienced. A driver, known only as Matthew, lost his feline companion, Ashes, at a truck stop in Ohio after it ran into the woods. 

The search Matthew searched all over for Ashes but was forced to abandon the cat there after he didn’t turn up. Heartbroken, the trucker rearranged his routing to search the truck stop over the next few months.

‘A Christmas miracle’ Half a year later a woman driving through the area on a cross-country road trip saw a shivering and malnourished cat at a rest stop trying to survive in 13 degree weather. The good Samaritan wrapped the cat in a blanket, and it rode all the way to Rochester, New York, before being dropped off at the Lollypop Farms animal shelter. The shelter scanned the cat’s microchip to learn its true identity. It was Ashes! One phone call later and Matthew and his cat were reunited. 

“It’s that microchip. Without it, I wouldn’t have ever gotten him back,” the trucker said.

Away, away, away As Laurie Berkner once crooned, the cat came back, we thought he was a goner. But the cat came back; it just couldn’t stay away.

WTT?!? Wednesdays

Three days a week— WTT?!? is now LIVE Mondays, Wednesdays and Fridays at 12 p.m. ET on FreightWaves.com, FreightWavesTV, FreightWaves LinkedIn and Facebook and on demand on podcast players everywhere. 

Launch show — The Dude and I have booked a star-studded lineup for our launch show Wednesday.

Steve Case, chairman and CEO, Revolution LLC — Case has done it all, from being the godfather of social media as AOL CEO/chairman in the ’90s to his work investing in early and growth-stage startups as chairman and CEO of Revolution LLC. As social media entered a new inflection point over the weekend, we’ll ask Steve about what direction he thinks communication is heading. Plus, the rise of startups based outside Palo Alto.
  
Thomas Healy, CEO, Hyliion — Healy is creating electrified powertrains designed to reduce emissions and lower fuel costs. When the company first went public last year, he was America’s youngest billionaire. Hear what Hyliion has planned for 2021.

Mark Wiese, manager of Deep Space Logistics, NASA — What will deep space logistics look like in 2021 and beyond? Wiese shares with us NASA’s goals for space commercialization and how such lofty aspirations have incredibly down-to-Earth uses.  

George Abernathy, president, FreightWaves — Our proud president joins us to talk about FreightWaves’ goals for 2021 and he’ll shed insight on how he thinks this year will play out inside and outside of Freight Alley.

Catch new shows live at noon ET Mondays, Fridays and Wednesdays on FreightWavesTV, FreightWaves LinkedIn and Facebook or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player.

Tales from the dark side of trucking

New audio podcast — Last week FreightCasts launched its newest addition to our podcast lineup, Long-Haul Crime Log. The show covers crime in trucking and supply chain. Take a trip into the seedy underbelly of the world of freight with journalists Clarissa Hawes, Nate Tabak and Noi Mahoney.

Wednesday — On the next Long-Haul Crime Log is the chilling story of the Turnpike Phantom, a killer who preyed on sleeping truckers in the summer of 1953. Plus, why an unsolved driver killing continues to haunt co-host Clarissa Hawes.

Power of podcasting — Expect a whole host of new shows on FreightCasts in 2021. Here’s a few amazing podcasting facts from a new SimpleCast report that says podcasts flourished with:

  • 51% increase in available inventory from active listeners.
  • 53% increase in new podcasts.
  • 81% increase in podcast ad impressions at different points throughout the year.

Subscribe to FreightCasts on Apple Podcasts, Spotify or wherever you get your podcasts and never miss a single FreightWaves show.

Now on demand

#EnteringTheTank

“If you want to be a really successful entrepreneur, you need to get into supply chain and logistics.” — Matt Walsh, founder of TrophySmack, on “Shark Tank” right before landing a deal with Mark Cuban. We caught up with him on WTT?!? on Monday. See how he reacted here

Tweet @ Dooner

Subscribe to the newsletter

Subscribe to the show

Apple Podcasts

Spotify

Or simply look up WHAT THE TRUCK?!? on your favorite podcast player. 

All FreightWaves podcasts can also be found on one feed by looking up FreightCasts wherever you get your podcasts. 

Want a new WHAT THE TRUCK?!? shirt? Check out the swag store.

One love,

Dooner

Rss

Does the Style of Driver You Are Determine Your Career Path?

Does the type of driver you are determine your career path? Drivers may not think about it very much but carriers sure do. Carriers know which drivers they can rely on, which ones are the safest in the fleet, and which drivers can cause problems. Knowing which driver style you are may determine the types of projects you receive, the money you make. And maybe even your career path. We talk about in this episode of the podcast.

This episode is also sponsored by Ontario Truck Driving School has a number of courses to help you be successful when starting a career in transportation from heavy equipment to over the road trucking. You can learn more about starting your career at www.otds.com

This episode is sponsored by Bison Transport with many opportunities for truck drivers in their fleet across Canada. You can learn more about Bison and the opportunities available http://fuelyourjourney.ca/  or call 1-800-527-5781 #fuelyourjourney @BisonTransport

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Rss

Lineage Logistics LLC, an industrial REIT and logistics solutions provider in the temperature-controlled segment, said Tuesday it has partnered with logistics software provider Turvo to launch Lineage Link, a platform that will connect the Lineage global network and all participants.

Novi, Michigan-based Lineage said it will deploy Turvo’s technology in more than 200 facilities during 2021. Eventually, it will connect most of Lineage’s global network of 330 facilities in 15 countries.

The platform is designed to give customers complete visibility across locations, orders, inventories, transportation and warehouse appointment scheduling, Lineage said. The partnership with Turvo “provides our customers with a transformative logistics solution to engage, manage and optimize their end-to-end supply chain,” said Sudarsan Thattai, Lineage’s chief information officer, in a statement announcing the alliance. 

Thattai said the platform will help Lineage to “transform the food supply chain” by extending process automation to foster deeper collaboration and visibility.

“We are working with Lineage to eliminate barriers in the supply chain created by antiquated, siloed technology,” said Scott Lang, Turvo’s chairman and CEO.

Rss

garbage truck driver

Garbage truck driver jobs can be a great fit for new drivers and experienced drivers alike. These jobs are typically local, so drivers get regular home time. They’re also great for drivers who like to stay on the move throughout their day. Garbage truck jobs often require some physical labor. As with many trucking jobs, it can be easy to find a garbage truck driving job, but hard to find a good one. Here’s what you need to know to find the best garbage truck driver jobs.

1. Know the Lingo

  • Residential: Residential garbage truck drivers are the ones you see in your neighborhood if you live in an urban area. These drivers are responsible for picking up cans from individual residences. 
  • Commercial: These drivers are the opposite of Residential garbage truck drivers. Commercial drivers pick up waste from businesses or apartment complexes. 

2. A Day in the Life

Garbage truck driver jobs can be quite different from other CDL jobs. Most of these positions are local, so drivers will stay within a relatively close radius. Typically, drivers are home nightly. That said, hours are not always consistent, so a garbage truck driver may find that their schedule does change at times. Another important thing to decide before you take a new job is what level of touch you prefer. Most garbage truck driver jobs call for a high level of touch, and there is usually manual labor required. If you like to be active, this job will keep you moving!

trashguyninja

Kevin, Garbage Truck Driver for EZ Pack

We talked to Kevin, a garbage truck driver for EZ Pack, and asked him if he had any suggestions for other drivers looking for a garbage truck driver job. He shared his perspective with Drive My Way.

“Well I guess everyone is always looking for a good driver with a clean CDL. So if you have those key ingredients you’re bound for success anywhere. Good perks and benefits if you find the right place, they’re out there, if you’re willing to work for it,” shared Kevin.

Commercial garbage truck drivers usually work in urban environments, so if city driving isn’t for you, think twice about this job! Similarly, many garbage truck driver jobs are for residential positions. That means that drivers need to be comfortable maneuvering in tight streets. In addition, because there are a lot of jobs in residential areas, some drivers may have a higher level of interpersonal engagement than in other local positions. 

3. How are Dump Truck Jobs Different?

If you are taking a job as a dump truck driver early in your CDL career, there are a few things to consider. This type of job can be a great way to get started in trucking, BUT you should know that not all employers consider this type of work good experience for other CDL jobs. Also, if you find yourself thinking that garbage truck driver jobs are an easy way to get started in trucking, that’s not necessarily the case! These trucks have a higher center of gravity than many other types of trucks, so it takes skill and experience to avoid incidents. Dump trucks are often considered more dangerous than other types of CDL work.

4. How To Become A Garbage Truck Driver

Once you’ve decided that this is the job for you, there are a few things you’ll need to get started. First, get your CDL A or B license. Some companies will accept either, and deciding between the two licenses will depend a lot on your plans for the future. If you want to drive dry van, tanker, reefer, or other similar jobs, a CDL A is more flexible. Some employers also value mechanical experience. While it may not be the main part of your job, a driver who can fix machines can be valuable. 

If you want to drive dry van, tanker, reefer, or other similar jobs, a CDL A is more flexible.

In addition to the technical requirements, there are some personal attributes that are helpful for garbage truck driver jobs. Often, driving a garbage truck requires a high level of physical fitness, so it’s helpful to be in good physical condition so you don’t strain or injure yourself. Also, it’s important that you like to be outside and are willing to work in different weather conditions. When you’re ready to make your next job change, check out Drive My Way to find companies hiring near you who are a good fit for your lifestyle and job preferences.

5. What Questions Should I Ask Employers?

truck driver holding steering wheelAny time you prepare for a CDL job change, there are a few important questions to ask. These questions will help you find the best garbage truck driver jobs for you at a reliable company. Before you even talk to the company, do your research on compensation, hours, and benefits.

If a company meets your needs, get in touch. Otherwise, stay away and move on to the next company. If possible, ask to speak with a current company driver to get their perspective. 

For garbage truck jobs, ask a recruiter about your route. Then, find out whether you will be working with a partner or solo. Equipment also plays a particularly big role for garbage truck drivers. Older truck models may not have the same grabbing hooks and may require more manual labor than newer models. Similarly, what level of touch can you expect? As you finish your conversation, make sure to ask about opportunities for advancement. You may not be looking for a career move right now, but you may be looking for a promotion in the future.

garbage truck driver

Find a Garbage Truck Driver Job

We match you with a job based on your professional qualifications and personal lifestyle preferences. Create a free driver profile with Drive My Way to receive your job matches.

Find a Job Today

The post 5 Tips for Finding the Best Garbage Truck Driver Jobs appeared first on Drive My Way.

Rss

 A new Kenworth video (https://youtu.be/02eiIy_l6XA) features the zero emissions Kenworth T680 fuel cell electric vehicle (FCEV) on the road to the

The post Kenworth Video Stars Zero Emissions Kenworth T680 FCEV on the Climb to 14,115-Foot Pikes Peak Summit appeared first on NextTruck Blog & Industry News - Trucker Information.

Rss

Drivers, carriers and medical review officers (MROs) could be fined up to $5,833 for each violation of any provisions within the Drug & Alcohol Clearinghouse, according to the latest directive from the U.S. Department of Transportation (DOT).

DOT issued a final rule on Monday that implements the authority of the Federal Motor Carrier Safety Administration (FMCSA) to assess civil penalties for violations of the Clearinghouse, at 49 CFR part 382 subpart G of the code of federal regulations.

“Any employer, employee, medical review officer, or service agent who violates any provision of 49 CFR part 382, subpart G … is subject to a civil penalty not to exceed $5,833,” the rule states.

That amount is more than double the $2,500 per violation that was outlined in much of the guidance issued by nongovernment entities in both the lead-up and implementation of the Clearinghouse over the past two years.

A DOT official explained that $2,500 was set for violations pertaining to commercial driver’s licenses in a statute established more than 30 years ago. “The statutory amount hasn’t changed since 1986, but in another statute, Congress requires the [FMCSA] to pass a regulation every year to update that amount for inflation,” the official told FreightWaves.

The official noted that while FMCSA’s Clearinghouse did not exist when the statute was established, the current fine for clearinghouse provision violations “reflect an inflation increase that started at $2,500 in 1986 and had been subject to several inflationary adjustments prior to 2015. Since 2015, it has been adjusted every year.”

One example of a violation of a Clearinghouse provision would be an employer accessing a driver’s record from the database without getting the proper written or electronic consent from the driver.

As of Dec. 1, 162,485 employers, 1,599 MROs and 9,048 consortium/third-party administrators had registered with the Clearinghouse, according to the most recent data from FMCSA.

Also included in the updated penalties:

  • A Commercial Driver’s License (CDL) holder who is convicted of violating an out-of-service order is subject to a civil penalty of at least $3,230 for a first conviction and at least $6,460 for a second or subsequent conviction.
  • An employer of a CDL holder who knowingly allows or requires an employee to operate a commercial motor vehicle during any period in which the CDL holder is subject to an out-of-service order is subject to a civil penalty of $5,833 to $32,297.

Related articles:

Click for more FreightWaves articles by John Gallagher.

Rss

A Mexico-based driver involved in a multivehicle crash in Georgia has been prohibited from operating commercial trucks in the U.S. by the Federal Motor Carrier Safety Administration (FMCSA). 

Commercial driver Mario Alberto Leal-Salas was deemed an imminent hazard to public safety and prohibited from operating any commercial motor vehicle in the U.S., according to an FMCSA release.

FMCSA’s imminent hazard out-of-service order states that Leal-Salas’ “blatant and egregious violations of the federal safety regulations and ongoing and repeated disregard for the safety of the motoring public substantially increases the likelihood of serious injury or death to you and the motoring public.”

The crash occurred Nov. 16. Leal-Salas, who holds a U.S.-accepted Mexican commercial driver’s license (CDL) was operating a commercial truck on State Route 96 in Taylor County, Georgia, when he failed to stop for a red light at the intersection of State Route 3. 

Leal-Salas’ truck caused “a multi-vehicle, chain-reaction crash and fire,” according to the FMCSA. Three people, including Leal-Salas, suffered severe injuries. Leal-Salas was employed by Laredo, Texas-based W Freight Services LLC at the time.

A subsequent FMCSA investigation found that approximately three weeks prior to the crash, Leal-Salas, who was then under consideration for employment by a different trucking company, had tested positive for a cocaine metabolite, benzoylecgonine, during a mandatory pre-employment drug and alcohol screening.

“Any driver who fails any drug and alcohol test, or refuses to submit to testing, is immediately prohibited from operating a commercial motor vehicle, with that information recorded in FMCSA’s Drug and Alcohol Clearinghouse — Leal-Salas’ drug test failure included,” according to the FMCSA.  

FMCSA investigators also discovered that two weeks following the crash in Georgia, around Dec. 4, and again on Dec. 17, although prohibited, Leal-Salas continued to operate a commercial vehicle. The investigation revealed multiple instances of Leal-Salas exceeding federal hours-of-service limitations as well.

Leal-Salas was served the FMCSA order in Mexico with the assistance of the Mexican government on Jan. 2.

Click for more FreightWaves articles by Noi Mahoney.

More articles by Noi Mahoney

China remains top US trade partner, Mexico No. 2

Volvo Trucks’ Mexican exit raises concerns for carriers

Texas border bridge expansion gets presidential permit

Rss

Peterbilt Motors Company is excited to announce that the Model 579EV is the first zero-emission, battery-electric, Class 8 truck to

The post PETERBILT MODEL 579EV CONQUERS PIKES PEAK appeared first on NextTruck Blog & Industry News - Trucker Information.

Rss

Carrin Cabral Fueling Her Journey with Bison Transport

Driver Carrin Cabral of Bison Transport talks with Bruce about her career on the road with Bison and working with one of the safest carriers in Canada. Bison Transport has many opportunities for truck drivers in their fleet across Canada. You can learn more about Bison and the opportunities available http://fuelyourjourney.ca/  or call 1-800-527-5781 #fuelyourjourney @BisonTransport

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com

Rss

Mike McAllister, an award-winning journalist with extensive editorial experience at major media outlets, has joined FreightWaves as editor in chief. McAllister will head the day-to-day operations of the editorial team, which includes over 20 journalists publishing more than 30 articles a day in the areas of global logistics, transportation and supply chain.                    

Craig Fuller, founder and CEO of FreightWaves, said, “I am excited to have Mike join the leadership team. His background in online media publications will further drive FreightWaves.com’s growth as the No. 1 news source for the freight industry.”

For the past 12 years, McAllister was the managing editor at PGATOUR.com, the official website for golf’s leading professional men’s tour. In that role, McAllister supervised a team of digital writers and editor-producers while also collaborating with multiple internal stakeholders. In addition, he generated original written content, with 15 of his stories receiving various honors — including three first-place awards — in the Golf Writers Association of America annual writing contest.

Prior to joining the PGA Tour, McAllister was a senior editor at ESPN.com and previously held a similar role at Sports Illustrated’s website, SI.com. He also worked in a variety of sports writing and editing positions at media outlets in Texas, including The Dallas Morning News and the Austin American-Statesman. 

“Having spent my career in sports, I welcome the unique challenge of stepping into another industry, one that touches all of our lives,” McAllister said. “This is an extremely exciting opportunity to join a terrific editorial staff at the world’s top source for logistics, freight and transportation news. I look forward to being part of the growing team at FreightWaves and getting to know others inside the industry.”

FreightWaves is the largest provider of market news, research and data for the $9.6 trillion global logistics industry. The global leader in audience size, FreightWaves.com delivers breaking news, analysis, content and opinion for all transportation and logistics modes. Moreover, FreightWaves offers a multimedia platform, including more than a dozen podcasts (under the FreightCasts banner), and FreightWaves TV, the only daily streaming TV network dedicated to freight, with a daily viewership of over 25,000. 

In 2020, the company produced 12 virtual events that generated massive audiences and spawned Firecrown Media, a new FreightWaves division that produces content not only for FreightWaves but other companies as well. The plan for 2021 is to surpass the records set in 2020. 

FreightWaves Passport is the company’s subscription research/analysis service that covers the transportation and logistics industries. Passport delivers logistics research, analysis and commentary that drive meaningful business decisions — and results.

FreightWaves SONAR is the industry’s most comprehensive freight data forecasting platform, providing unparalleled insights and forecasts. This software-as-a-service subscription helps transportation providers benchmark, analyze, monitor and forecast spot rates, capacity, demand and costs across their businesses.  

SONAR is the only freight forecasting and analytics platform that offers real-time freight market intelligence driven off actual freight contract tenders. It combines contract tender data with spot rate data to create predictive freight rates. It creates the most current freight activity and logistics rate indices in the market. Plus, to help subscribers focus attention on the most important decisions, SONAR breaks down freight data based on geography, mode or freight market share.

Rss

Commercial truckers always operate with an element of risk in their daily routes. Whether it’s a quick load drop-off or a cross-country trip, the liabilities related to costly accidents and injuries are still the same. In fact, every 15 minutes, a person is killed or seriously injured in an accident caused by trucks, accumulating to more than 500,000 trucking accidents annually.

When these events happen, trucking insurance claims are made. This can highly impact the rates they pay. Fortunately, there are ways that truckers and the companies they work for can avoid hefty insurance claims, including general liability, workers’ compensation, and more.

Read below to get helpful information on how to limit the potential for large trucking insurance claims.

Controlling Insurance Rates

To keep policy prices relatively low, truckers, and the companies they contract for should demonstrate that a safety program is in place. From driver training to a drug-free workplace to return-to-work programs, truckers can reduce claims in the long term and show their insurer that they are proactive in making accountability and safety priorities. This can help reduce the frequency of trucking claims, no matter how big or small, and help keep future costs down.

 Monitor Your Insurance Policy

By keeping an eye on what’s happening with insurance policies and rates, trucking companies take care of their fleets, drivers, and bottom line. In the last decade, the average cost per mile for coverage has risen by about 30 cents, a surge that is important to be aware of when shopping for or renewing an insurance policy. Knowing what’s happening in the marketplace can help fleets stay on top of their expectations and coverage limits.

Reducing Workers’ Compensation Claims and Costs

Trucking companies can be proactive with their drivers by starting new drivers out with orientation. This can include a more experienced driver riding with them for the first few days on short hauls. This might be more expensive in the short term, having two drivers in the same cab, but over time will be more cost-effective as this helps new drivers get insight and perspective.

Having a drug-free workplace can also reduce claims and eschew rising rates. Aside from marijuana and alcohol, truck drivers have been having issues with more recreational drug use, including opioids and cocaine, which some use to stay awake and alert. Because drivers are always sitting and lifting heavy objects, back injuries are common among drivers, and those drivers might need to take prescription drugs to treat injuries. This only increases the risk of incidents. Having a drug-free expectation creates awareness and protection for the trucking company and the driver and others on the road around them.

Promoting Safety, Reducing Liabilities

Simple safety measures should be in place to help limit the potential for accidents and hefty insurance claims to occur. Driving the speed limit, especially on unfamiliar or unsafe roads, can keep drivers and their trucks safe. Drivers should also keep distractions away, including texting, talking, videos, or eating. If an accident involves distracted driving, there won’t be much you can do to plead innocence.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck, and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

The post How Truckers Can Avoid Hefty Insurance Claims appeared first on Western Truck Insurance Services.

Rss

Modern Transportation Services

Today’s Job of the Day comes from Modern Transportation

For over 30 years, Modern Transportation has been a leader in dry bulk & liquid chemical material logistics & trucking. We operate two dozen terminals covering more than 30 states. We’re not looking for just any truck driver with a CDL; we’re seeking professional truck drivers who take safety seriously!

Modern Transportation Services logoModern Transportation is seeking Company Drivers to haul liquid chemicals to customers throughout the south and south central region on either a dedicated or regional lanes (both are available).  Drivers will be pulling 53 foot tankers with hazardous chemicals. Drivers choose Modern Transportation to build their career at a place they call home.

Modern Transportation is hiring CDL A Regional Liquid Chemical Tank Drivers in Cincinnati, OH.

Compensation

  • Average weekly pay: $1,300 averaging 2,500 miles a week
  • Base CPM:
    • .53 first 6 months
    • .54 after 6 months
    • .55 at 1 year
    • .56 at 2 years
    • .57 at 3 years
  • Additional Pay:
    • .53 paid empty miles
    • $22 an hour from arrival detention pay
    • Holiday Pay – New Year’s day, Memorial day, July 4th, Labor day, Thanksgiving day & Christmas day
  • Bonuses include:
    • Quarterly Safety Bonus ($300/quarter)
    • Driver Referral Bonus – $1,500/hire after 30 days-no limit
    • Paid via direct deposit weekly

Benefits & Perks

Great company benefits starting after 30 days:

  • Medical, dental, vision and prescription drug coverage
  • 401K plan with company match
  • Life Insurance, Short-term and Accident
  • Paid Time Off (Begin accruing week one, eligible to begin taking as it is earned after 90 days)
  • Paid orientation and training
  • Perks: Fuel Cards, Base Plate Program and Fuel tax reporting for Owner Operators
  • Constant Work

Routes & Schedule

  • Routes: 70% East of Cincinnati; Philadelphia, New Jersey
  • Home Time: Average load keeps driver out 2 days or 1 night a week
  • Some evenings and weekends may be required
  • Level of Touch: No Touch Freight

Equipment

  • Fleet is 2019 Freightliner or International LT
  • Automatic transmission
  • Governed speed: 65 mph
  • Inward and outward facing cameras

Requirements

  • Must be at least 22 years of age
  • Must have a valid CDL A license
  • Tanker and Hazmat endorsements required
  • Must have a minimum of 2 years verifiable tractor-trailer tanker experience
  • Cincinnati: No DUI/DWIs or reckless driving charges in last 3 years
  • Must meet Department of Transportation (DOT) testing and physical requirements and be knowledgeable of DOT regulations
  • Must be able to pass a required pre-employment drug screen and a new DOT physical
  • Cincinnati Hiring Radius: Drivers must live within 40 miles of Cincinnati, OH or be willing to relocate for this position

Modern Transportation Services truckJoin the Modern Transportation Team

Modern Transportation is hiring CDL A Regional Liquid Chemical Tank Drivers in Cincinnati, OH. Start your next job with Modern Transportation Services!

Learn More and Apply

The post Job of the Day: Modern Transportation appeared first on Drive My Way.

Rss

New Washer System Keep Headlights Clean for Truckers

It’s been one of the biggest problems of all times in the trucking industry, keeping the headlights clean on your truck in bad weather. Former trucker Eric Richardson has come up with a solution to the age old problem after it causing problems in his own career. In this episode we find out how the Maric Washer System works and why it may be the next best thing for truck drivers to improve safety on the road. You can learn more about the washer system at www.maricltd.com

This episode is sponsored by C.A.T. Transport offering flexible work options, pet friendly programs, and is one of the Best Managed Carriers in Canada. Learn more at www.cat.ca  or call 1-800-363-5313

DriverCheck is a leader in drug and alcohol, cognitive, and workplace testing helping employers have a safe workplace for their staff. Learn how DriverCheck can help you be safe at www.drivercheck.ca

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Rss

Ground crew person with yellow vest and paddles to wave plane to parking spor.

Schiphol Airport in Amsterdam will move the cargo department under the wing of airline operations beginning in March to create more coordination between the commercial and operations units.

Schiphol is the fourteenth largest airport in the world for international airfreight, according to the Airports Council International.

The single division will be led by Anne Marie van Hemert, senior manager of aviation business development. Miriam Hoekstra – van der Deen will step down as director of airport operations and will be succeeded by Patricia Vitalis, who is currently the senior manager process, development and capacity management, and will serve as the new head of the Airport Operations and Aviation Partnerships business Unit.

The airport cargo information platform Cargonaut, acquired in November by Royal Schiphol Group, will also be part of the new Aviation Business Development Division. Royal Schiphol Group said at the time it will modernize the system over the next two years to make it easier for cargo partners to share information.

“Cargo is, and remains, important to Schiphol and it supports the passenger network, making certain intercontinental routes profitable for many passenger airlines,” said Hoekstra – van der Deen in a statement on Thursday.

“Having the route and business development managers and the cargo managers working more closely together will bring more synergy to the way we work and ensure that we can better support the airlines, especially during these challenging times.”

The new division will continue to support ongoing cargo initiatives by local freight community, including organizing itself into a hub for shipping vaccines and pharmaceutical products, the Holland Flower Alliance and 

by the community including Vaccines Gateway Netherlands, Pharma Gateway Amsterdam, the Holland Flower Alliance, and the implementation this month of digital pre-notifications for all export cargo.

In other personnel moves, Bart Pouwels, the head of cargo, and Ferry van der Ent, director of business development will both leave Schiphol in March.

A manager for the new airline and cargo partnerships team will be appointed over the coming weeks.

Click here for more American Shipper/FreightWaves stories by Eric Kulisch.

RELATED NEWS:

Kuehne + Nagel lands global logistics deal for Moderna COVID-19 vaccine

Image post
Reddit

"Snow" qualmie today.

Image post
Reddit

You had one job...

Image post
Reddit

Dispatch: live load of a single pallet

Image post
Reddit

Started 6 months ago running a 53' flat deck. Only missed Montana and North Dakota on my bingo card

Image post
Reddit

Alright, who was it?

Rss

Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Border bridge project gets presidential permit; Honda to build electric vehicle in Mexico; Texas-based Spirit Truck Lines acquired by Forgelight; and CBP seizes meth hidden in tortilla press.

Pharr bridge project receives presidential permit

The city of Pharr, Texas, recently received a presidential permit authorizing the expansion of the Pharr-Reynosa International Bridge.

The permit, which was issued Dec. 31 by President Donald Trump, allows for the addition of another bridge at the Pharr port of entry on the U.S.-Mexico border.

The aim of the bridge project is to add cargo capacity and reduce wait times at the port, said Pharr Mayor Ambrosio Hernandez.

“This permit amends the current permit to allow for the expansion of the Pharr International Bridge and will further support the record numbers of international trade and commerce that transpires on our port of entry,” Hernandez said in a release.

The second bridge will add two new lanes to separate trucks and cars, while dedicating specific lanes for empty cargo trucks and full cargo trucks, and Customs-Trade Partnership Against Terrorism (CTPAT) certified cargo trucks.

Pharr-Reynosa International Bridge is one of the busiest commercial border crossings on the U.S.-Mexico border. Pharr had 623,155 truck crossings during fiscal year 2018-19.

The bridge’s trade totaled $3.21 billion for the month of October, according to WorldCity.

Pharr’s top three exports to Mexico by value in November were liquified natural gas ($2 billion), motor vehicle parts ($471 million) and gasoline ($400 million).

Its top three imports from Mexico were TVs and computer monitors ($2 billion); avocados, strawberries, blueberries, raspberries, pineapples, etc. ($1.34 billion); and electrical boards, panels and switches ($906 million). 

GM to build Honda electric vehicle in Mexico

General Motors Co. will build Honda and Acura-branded electric crossovers in Mexico and Tennessee starting in 2023, Automotive News reported Wednesday.

The Honda electric vehicle reportedly will be assembled at the GM plant in the northern Mexico city of Ramos Arizpe, about 175 miles from Laredo, Texas. GM assembles its Chevrolet Blazer and Equinox at the same location.

GM will assemble Honda’s electric vehicle at an assembly plant in Mexico. (Photo: Honda)

The new Acura electric vehicle will be built at GM’s facility in Spring Hill, Tennessee. The plant currently builds the GMC Acadia, Cadillac XT5 and XT6. 

GM and Honda announced an agreement to jointly develop electric vehicles in April. The two companies said that the Honda and Acura electric vehicles would feature exteriors and interiors designed by Honda while using GM’s global electric vehicle platform.

Texas-based Spirit Truck Lines acquired by Forgelight

Spirit Truck Lines, headquartered in San Juan, Texas, was recently acquired by investment firm Forgelight.

Spirit provides dry-van truckload transportation outbound from the Mexican border and returning inbound from throughout the continental U.S. The company has more than 300 tractors and 1,200 power units serving the U.S.-Mexico cross-border market.

Plethora Businesses, an M&A advisory firm headquartered in Orange, California, served as the sell-side adviser in the deal.

“The Spirit team has built an impressive operation with many world-class clients and their truckload and cross-border focus is an excellent platform for continued service expansion,” Robert Fahrenhorst, Plethora’s managing director, said in a release

New York-based ForgeLight is an investment company focused on the media and consumer technology sectors. 

CBP seizes meth hidden in tortilla press

U.S. Customs and Border Protection officers in Cincinnati recently found 26 pounds of meth in a shipment of imported freight from Mexico.

The case occurred Jan. 1 at the Cincinnati Port of Entry, where a K-9 alerted agents to a shipment of imported handicrafts from Mexico. A closer exam reportedly revealed a white powdery substance concealed inside a wooden tortilla press in the shipment.

The powder tested positive for methamphetamine, with a total weight of 26 pounds. The shipment was headed to a residence in Houston, according to the CBP.

Borderlands is sponsored by Forager. More information on Forager’s offerings can be found at: https://www.foragerscs.com/.

Click for more FreightWaves articles by Noi Mahoney.

More articles by Noi Mahoney

Volvo Trucks’ Mexico exit raises concerns for carriers

185 Texas workers laid off from metal supplier

Five biggest Mexico border busts of 2020

Rss

Story by: Mark Solomon at FreightWaves   Technology to help improve freight-loading at docks, company says   XPO Logistics Inc. (NYSE: XPO) said it has completed a pilot program to train its North American less-than-truckload (LTL) dock employees in using virtual reality (VR) technology to improve their freight-loading performance. In the pilot, XPO created a […]

The post XPO Logistics completes virtual reality pilot for LTL dockworkers appeared first on iTrucker | Transforming Trucking.

Image post
Reddit

Rss

Miss one of our shows this week? Get caught up here! 

You can conveniently find every FreightWaves podcast in one feed via the free FreightCasts channel on freightwaves.com/podcasts, iTunes, Spotify or wherever podcasts are found. 

Subscribe to FreightCasts and never miss a FreightWaves podcast.

The full list of FreightWaves media can be streamed via the FreightWavesTV app available on your smartphone, Apple TV, Roku and Fire TV. The app is free on all platforms.

Users of the FreightWavesTV app also have access to a full lineup of FreightWavesTV content, including weekday livestreams, special reports, news segments, past shows, SONAR demos, rapid-fire demos and exclusive interviews.

WHAT THE TRUCK?!?

Monday: Dooner and The Dude remember a special boy who lost his battle with a brain tumor on the first WTT?!? of the year 

Midday Market Update

Tuesday: How can a changing political landscape affect transportation? Find out where politics meets logistics.

Thursday: The list of best companies to drive for in 2021 is out. Which carriers made the cut?

Great Quarter, Guys

Tuesday: Andrew Cox and Seth Holm make predictions for the state of sales in the new year.

Put That Coffee Down

Wednesday: Hook, line, sales sinker. Kevin Hill and Blythe Brumleve teach you the techniques to land you big sales pitches. 

Freightonomics

Wednesday: Where will the market head in 2021? Anthony Smith and Zach Strickland lay out their predictions for the new year. 

#WithSONAR

Wednesday: Luke Falasca and Kyle Taylor take a deep dive into spot rates and figure out if your brokers are paying more than they should. 

Navigate B2B 

Friday: It’s still “containergeddon” on the high seas, even after the holiday shipping rush. Steve Ferreira breaks down how much longer he thinks the container crisis will last. 

Get the top headlines from FreightWaves.com every weekday morning, available on FreightWaves.com/podcasts, your favorite podcasts player and Alexa by adding the skill “FreightWaves.”

You can find more recaps of our shows here

More FreightWaves Podcasts

Image post
Reddit

Freeways, cars and trucks...

Image post
Reddit

Everyone else ready for trucking in 2021?

Rss

Story by: Clarissa Hawes, Senior Editor, Investigations and Enterprise at FreightWaves     “Message to truckers: Focus on policy, not politics”   Trucking groups condemned the Wednesday attack on the U.S. Capitol by supporters of President Trump, which left at least five people dead, including a Capitol Police officer, and many more injured. The Owner-Operator […]

The post OOIDA and ATA are among trucking groups condemning US capitol violence appeared first on iTrucker | Transforming Trucking.

Image post
Reddit

Container hauler time line

Rss

Startup hybrid electric truck driveline maker Hyliion Holdings (NYSE: HYLN) is $142 million better off following the sale of shares converted from warrants issued by the blank check company (SPAC) that brought Hyliion public.

Interestingly, Hyliion doesn’t need the money to run the business. Its reverse merger with Tortoise Acquisition Corp. in October 2020 gave Hyliion $520 million after expenses to fund its business plan.

“This incremental capital allows us to pursue additional partnerships and M&A activity that we may not have considered previously,” CEO Thomas Healy said in a press release Thursday.

The warrants acted as a sweetener to early investors who bought in shares in Tortoise. Each full warrant could be exchanged with $11.50 for a share of Hyliion stock after the business combination on Oct. 3.

Hyliion shares have traded above $50. Even at Friday’s closing price of $17.27, shares resulting from the warrants were in the money. More than 98.5% of the warrants issued in February 2019 were exchanged for 12.5 million shares of Hyliion stock. The remainder expired on Dec. 30.

Business moves ahead

The share price has little impact on Hyliion’s plans to begin early production of its ERX Hypertruck later this year. The ERX is a hybrid system consisting of an electronic axle and a natural gas-powered generator that makes electricity to charge the battery on Class 8 trucks. Proprietary software monitors energy use, routing and other functions.

“We view this as a solution we can offer our long-haul customers. We think [Hyliion’s] systems paired with our motors, inverters, and eAxles can meet their immediate needs for fuel efficiency,” Ryan Laskey, Dana Inc. senior vice president, commercial vehicle drive and motions systems, told FreightWaves.

Dana (NYSE: DAN) was an early investor in Hyliion.

If the generator uses renewable natural gas (RNG), Hyliion expects it will record below net-zero greenhouse gas emissions. 

So far, Hyliion has booked no revenue, deciding against recording $1 million from 20 electronic axle systems for diesel and natural gas trucks.  

“We see a tremendous number of opportunities in the transportation sector that are ready to participate in this electrification transformation,” Healy said. 

Maybe even hydrogen

“Over the next year, we will explore additional technologies and business strategies that could range from improving our existing solutions, RNG expansion, hydrogen development, improved battery solutions, expanding our product portfolio and more,” Healy said.

For its one customer that requested a hydrogen-powered generator, Hyliion is partnering with French automotive fuel cell systems maker Faurecia and Symbio, a joint venture of Faurecia and Michelin, for fuel cell technology and production.

“Renewable natural gas makes a ton of sense. The costs are just so much lower than diesel and hydrogen. So, I’m long on renewable natural gas,” Healy said in an interview with FreightWaves on Aug. 31. “The thing I still can’t wrap my head around is the cost [of hydrogen].”

Hyliion decides against booking revenue from early trucks

Nikola, Hyliion defend divergent paths to zero-emission trucking

Dana builds electrification vertical for commercial vehicles

Click for more FreightWaves articles by Alan Adler.

Rss

Chart of the Week:  Employment Not Seasonally Adjusted – Truck Transportation, Equipment Orders – Class 8 Vehicles – USA SONAR: EMPN.TRUK, ORDERS.CL8

One of the biggest questions of 2021 for trucking is whether a wave of capacity will enter the market that stabilizes the current elevated spot rate environment. This is a question many transportation providers struggle with each year as they attempt to balance the need for growth versus cost control. Overextend your fleet beyond demand and you have to drop your prices just to keep rolling. Demand exceeds your capacity and you miss out on precious growth opportunities. The bottom line is spot rates have expanded too much and sustained for too long not to see growth in capacity this year. So the real question is not if, but when will it occur. 

Trucking capacity is relatively opaque, with very few measures available to get a full picture of how much is available in the for-hire or non-private trucking space. The Bureau of Labor Statistics puts out a monthly figure measuring employees in the truck transportation space that is a good directional measure for the growth or decline of the industry. It covers all the employees of carriers, including drivers and back office workers. 

Looking at the non-seasonally adjusted figure for truck transportation employment levels as of November, there is still a long way to go to get back to pre-pandemic levels. In November of 2019, there were over 15.3 million people employed in the trucking industry, whereas this past November that figure sat around 14.8 million — a difference of more than 500,000 jobs. 

Like many industries, trucking companies have not fully recovered their employment levels to where they were when the pandemic began in earnest in March of 2020. In the meantime, freight volumes have expanded beyond where they were when this began. The result has been unprecedented growth in spot market rates in the second half of the 2020. 

With so much uncertainty around what was occurring and how long the demand would last, carriers were hesitant to invest in growth, having been hit hard by low volumes in April and burned by an oversupplied 2019 market that resulted largely from overinvestment in 2018.

Once again, we saw a familiar pattern emerge in late 2020 as orders for new Class 8 trucks hit 47,034 units in November and preliminary reports for December have orders over 50,000, according to ACT Research. These numbers resemble those last seen in July and August of 2018 as spot rates hit multiyear highs.

These two situations are not completely congruent. Carriers were motivated to invest in depreciating assets thanks in large part to the tax incentive put in place by the Trump administration. One of the major reasons for the surge of freight in 2017-18, which led to their confidence in an extended period of demand. 

Orders averaged 32,000 units for the 12-month period starting in October of 2017, compared to 14,600 for the previous 12-month period. Looking at the employment figures we can see this was a rapid expansionary period for trucking that bled into early 2019. 

The recent surge of orders signals a wave of capacity coming online in the second half of 2021, but some of that capacity will be replacement orders for older equipment and replenishment from a slew of exits in 2019. 

Ordering trucks will be easier than seating them this year as driver recruitment challenges remain in place. Driver schools have been operating well below capacity and the Drug and Alcohol Clearinghouse has removed thousands of drivers from the pool since its inception last year. 

Most forecasts show demand staying elevated for the first half of 2021, which means these orders will not have an impact in the near-term. Many questions still remain around what demand looks like after the pandemic begins to wane. These orders suggest carriers are much more optimistic about the long-term than they were earlier in the year.

About the Chart of the Week

The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on FreightWaves.com for future reference.

SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time.

The FreightWaves data science and product teams are releasing new data sets each week and enhancing the client experience.

To request a SONAR demo, click here.

Image post
Reddit

Here's mine...

Rss

Violent attack at U.S. Capitol

Trucking groups condemned the Wednesday attack on the U.S. Capitol by supporters of President Trump, which left at least five people dead, including a Capitol Police officer, and many more injured. 

The Owner-Operator Independent Drivers Association, the Western States Trucking Association and the American Trucking Associations separately spoke out against the violence, casting it as an affront to U.S. democracy. 

“Certainly most people would agree that Wednesday was a sad day for American democracy,” Todd Spencer, president of the Owner-Operator Independent Drivers Association, told FreightWaves. “What happened in the nation’s Capitol is certainly unacceptable, inappropriate, totally uncalled for.”

Thousands of pro-Trump supporters, including some truck drivers, marched to the Capitol at the president’s urging after attending Trump’s “Save America Rally” where he continued to make false claims about election fraud and called for lawmakers to block the certification of the Electoral College vote.

Spencer said he supports all truckers’ rights to peacefully protest, but not those wanting to do harm or destroy public or private property.

OOIDA, a Missouri-based trade association that represents small-business truckers, was founded in the early 1970s as truckers protested the OPEC oil embargoes that attempted to shut down the trucking industry and nearly crippled the nation. 

“We figured out pretty quickly that protests make a little noise for a moment, but if you want to see real change, you have to knuckle down and work within the system,” Spencer said.

Spencer said he has members of both political parties who say Washington, D.C., doesn’t really work for them right now.

“It’s time to turn down the noise and focus on the issues, not politics,” he said. “The vast majority of issues that truckers have can only be resolved with bipartisan cooperation.”

Truckers need a place at the table under Biden administration

Joe Rajkovacz, who serves as the director of governmental affairs for the Western States Trucking Association, said if truckers want a place at the table to talk about serious issues facing the trucking industry they must first turn off the Trump rhetoric.

“Like it or not, there is a changing of the guard in Washington, D.C.,” Rajkovacz told FreightWaves. “If you truly care about the trucking industry, antagonizing those coming into power, who will be the decision makers, will backfire on you.”

He said any traction truckers gained under Trump will be lost by continuing to buy into the conspiracy theories about election fraud touted by the president, some U.S. lawmakers and pro-Trump supporters.

“There are some serious issues ahead that need to be addressed under President-elect Biden,” Rajkovacz said. “You aren’t going to gain a damn thing if you antagonize the Democrats right now,” he said.

Business groups seek to distance themselves from Trump

National Association of Manufacturers CEO Jay Timmons, a staunch supporter of Trump policies, issued a stunning rebuke of the president Wednesday and called for him to be removed from office. 

The Retail Leaders Industry Association also forcefully denounced conspiracy theories about the election and called Wednesday’s events sedition.

U.S. Department of Transportation Secretary Elaine Chao resigned one day after Wednesday’s violent attack on the Capitol.

In commenting on her resignation, American Trucking Associations President and CEO Chris Spear called Chao a “strong leader and a tremendous partner” on issues affecting trucking.

“On a personal note, having worked for and with her over many years, I can attest that Elaine is a person of strong moral character, and should be applauded for not standing idly by following yesterday’s abhorrent and shameful events at the Capitol,” Spear said in a statement. “This is the kind of principled stand in support of our democracy I’ve always known her to take.”

The ATA,  which has had strong ties to Trump over the last four years, is a national trade organization representing large motor carriers in the U.S.

“We look forward to working with President-elect Biden’s Transportation Secretary nominee Pete Buttigieg as he begins his transition to lead the Department,” Spear said.

Read related articles:

Business groups condemn Trump-led insurrection, election fraud claims
DOT chief Elaine Chao to resign

Image post
Reddit

So...I do a lot of work between Chicago and Cleveland...and both oceans...

Image post
Reddit

Can't wait for bug season!

Rss

Rail stock of an OmniTRAX railroad. The company was hit in a ransomware attack.

Colorado-based short line rail operator and logistics provider OmniTRAX was hit by a recent ransomware attack and data theft that targeted its corporate parent, Broe Group.

OmniTRAX confirmed to FreightWaves that the cyberattack had occurred after the Conti ransomware gang posted stolen data from a leak site. The company, however, provided no details about the incident and whether it impacted any operations.

“We are fully aware of the situation, but company policy requires we do not comment on security protocols,” John Spiegleman, OmniTRAX’s chief legal officer and general counsel, said in a statement. “OmniTRAX continues to operate, business as usual.”

OmniTRAX, headquartered in Denver, operates 21 short line railroads in the U.S. and one in Canada. While there was no indication of operational impacts, the short line railroads play an essential role in the North American supply chain by linking shippers with the larger rail networks. 

The attack occurred sometime before Dec. 24, based on the timing of the ransomware gang’s post. The leak itself suggests that the Broe Group, which owns OmniTRAX as part of a multibillion dollar portfolio and is headquartered at the same location, refused to pay the hackers’ ransom demands.

A sample of the 70 gigabytes leaked files viewed by FreightWaves include internal OmniTRAX documents, including the apparent contents of individual employee work computers. It was not clear if it included data pertaining to OmniTRAX’s rail operations or its customers.

First publicly known cyberattack of its kind in the U.S. freight rail sector

It represents the first publicly known case of a so-called double-exhortation ransomware attack against a U.S. freight rail operator. Numerous trucking and logistics companies including Forward Air have been targeted by an array of ransomware groups using the tactic of stealing and then encrypting data and demanding payments in exchange for unlocking systems and a promise to never release that data publicly. 

A cybersecurity expert familiar with the rail industry told FreightWaves that the likely attack caused little to no disruption to OmniTRAX’s rail operations. But the expert said the public disclosure of employee data is troubling. 

Concerns have grown in recent years about cyberattacks on railroads, with the increasing digitization of the industry but the absence of appropriate cybersecurity. Fears have largely focused on the prospects of a large-scale disruption to the supply chain, or hackers compromising the systems of rolling stock, potentially stopping trains or disabling safety systems. 

Ransomware attacks generally are a blunter instrument designed for the purpose of making the hacking groups money. But as evidenced by the recent Forward Air attack, the locking of data can impact transportation operations. 

The CEO of railcar manufacturer Greenbrier, Bill Furman, told financial analysts on Wednesday that the company is stepping up its cybersecurity efforts in response to high threat levels.

“This is a growing risk to all companies we operate, where we have some vulnerabilities if we were penetrated, we’ve all watched those headlines,” Furman said. “So our board is concerned about that. We’re concerned about it. We’re investing to protect ourselves.”

FreightWaves Senior Staff Reporter Joanna Marsh contributed to this report.

Click for more FreightWaves articles by Nate Tabak.

As ransomware attacks hit trucking, victims face costly dilemma

5 defining cyberattacks on trucking and logistics in 2020

Forward Air reveals ransomware attack, warns of revenue hit

Image post
Reddit

My spy report. Good thing I'm Hourly

Image post
Reddit

My turn. 4 years as a local driver.

Image post
Reddit

Figured I'd try van hauling

Image post
Reddit

My first year OTR

Image post
Reddit

Guess I'm a creature of habit.

Rss

Evaluating the Safety of a Carrier with John Farquhar

Risk specialist John Farquhar is Bruce’s guest on the show today to talk about how drivers can evaluate a carrier to determine if it is a good place to work. Working for an unsafe carrier can out a driver at risk causing problems for a driver and their career now and in the future. Farquhar is a veteran of the industry from trucking company owner, insurance specialist, and now risk analysis expert. You can learn more about Farquhar and his company Summit Risk Solutions at www.summitrisksolutions.ca

This episode is sponsored by Bison Transport with many opportunities for truck drivers in their fleet across Canada. You can learn more about Bison and the opportunities available http://fuelyourjourney.ca/  or call 1-800-527-5781 #fuelyourjourney @BisonTransport

DriverCheck is a leader in drug and alcohol, cognitive, and workplace testing helping employers have a safe workplace for their staff. Learn how DriverCheck can help you be safe at www.drivercheck.ca

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Image post
Reddit

I like my buckets ice cold! -10 to 0

Rss

For the second month in a row, China was the main trading partner of the U.S., followed by Mexico in second place and Canada in third. 

Trade between the U.S. and China totaled $59 billion in November, an increase of 30% compared to the same period a year ago, according to data released Thursday by the U.S. Census Bureau.

Mexico’s trade with the U.S. totaled $49 billion in November, a decrease of 1.8% from November 2019. Mexico had ranked No. 1 for the same month last year.

Trade between the U.S. and Canada totaled $47 billion in November. It was $17 billion with Japan.

China was also the top U.S. trading partner from January through November, totaling $504 billion, followed by Mexico at $489 billion, Canada at $478 billion and Japan at $167 billion.

The Port of Los Angeles remains the No. 1-ranked port among U.S. gateways in November, followed by Chicago O’Hare International Airport.

Port Laredo in Texas was No. 3 for the second straight month, with total trade with the world at $19.8 billion in November. 

Port Laredo ranked No. 4 for total trade among all U.S. ports and border crossings through November. It ranked No. 1 during the same period last year.

While Port Laredo’s total trade may be down because of the pandemic, there are still plenty of trucks and loads at the border, said Jordan Dewart, a manager director at Redwood Mexico based in Laredo.  

“This first week of January, load-to-truck [ratio] spiked to over 34-to-1 in Laredo, with volumes of up to 5,000 trucks a day,” Dewart said. “That’s far ahead of 2019.”

According to FreightWaves’ SONAR platform, 2021 and 2020 outbound volumes (highlighted in blue) in Laredo are already above recorded levels at this time in 2018 (red) and 2019 (green). FreightWaves SONAR (OTVI.LRD)

Dewart said the increasing number of loads can be attributed to increased production from factories in Mexico, as well as an increase in demand from the U.S. 

“It’s just a continued high level of demand from U.S. employers in all sectors: retail health care, consumer electronics, automotive,” Dewart said.

Click for more FreightWaves articles by Noi Mahoney.

More articles by Noi Mahoney

Tanker driver killed in fiery crash in Houston

185 Texas workers laid off from metal supplier

Five biggest Mexico border busts of 2020

Rss

Navigate B2B 11/20

Container shortages continue into new year

Ocean Audit CEO Steve Ferreira spent the end of 2020 talking about challenges across the maritime shipping industry, and one big story was the shortage of containers and massive port backlogs. 

“No analyst expected ‘Containergeddon’ to extend past Q1,” but the current state of the economy shows the opposite is happening, Ferreira says in this episode of Navigate B2B. 

He believes that the possibility of another stimulus check for consumers will release pent-up demand, but later than originally anticipated. Ferreira also thinks delays in vaccine rollouts will keep pushing the shift of consumer spending back to services and away from goods. 

The bottom line is that container demand will only keep rising as consumers keep buying goods, and maritime rates will keep rising as well, according to Ferreira. 

Ferreira welcomes Beth Granger, CEO of Beth Granger Consulting, to talk about how social networking can provide a personal edge. 

Granger is a LinkedIn trainer and her goal is to help clients up their game on social media. 
You can find more Navigate B2B recaps and recaps for all our live podcasts here.

Subscribe to our Youtube

Follow us on Twitter

Like us on Facebook

Rss

The first glance at the BLS employment numbers in trucking looks strong, but some other numbers are lagging.

Monthly employment figures show a transportation industry that is adding a significant amount of jobs by one measure but also raises questions why a red-hot freight market isn’t putting up numbers even higher.

The most looked-to number in the monthly data for the health of the industry is employment in the truck transportation sector on a seasonally adjusted basis. The preliminary number for December rose to 1,484,300 jobs, an increase of  7,300 jobs from the revised November number of 1,477,000 jobs. With the October numbers in the books — the last two months would have reflected preliminary estimates of October — it means that the truck transportation sector has added 19,100 jobs over the last two months on a seasonally adjusted basis.

But there are two things to note: The December figure is still less than the 1,526,400 truck transportation jobs reported in December 2019. And on a non-seasonally adjusted basis, the number of truck transportation jobs in December actually declined slightly, to 1,482,400 from 1,484,900. (All December numbers are preliminary.)

While analysts always tend to look at seasonally adjusted numbers, Jason Miller, an associate professor at Michigan State University who specializes in trucking and supply chain research, said he likes to look at both figures.

“The seasonal adjustment factors are based on historical patterns,” he wrote in an email to FreightWaves. But the problem is that those patterns can become “outdated” by big shocks to the system, like what the global economy is going through now, Miller said.  

“The not seasonally adjusted data provides the raw figures and, hence, isn’t sensitive to past patterns potentially becoming outdated,” Miller said.

Miller’s theory on the divergent paths of seasonally adjusted and not seasonally adjusted figures in December is that it was created by the impact from what he described as the “specialized local sector.”

“We see pronounced seasonality tends to be present, with substantial employment declines in December usually occurring,” he wrote. “We didn’t see the usual decline occur in November, though. This would suggest that if employment stayed steady, we would see the seasonally adjusted employment inflated upwards.”

Miller also dove into the more specific sector data that goes through November. That breaks down the truck transportation jobs numbers into LTL and truckload. 

One area that has caught his eye is the difference in the not seasonally adjusted numbers for truckload and LTL carriers. 

“One different dynamic to me with LTL is that we can see that employment began declining after July 2019, but this didn’t happen in (the category of truckload),,” Miller wrote in an email. “My thought is that this occurred because of LTL carriers’ greater exposure to the industrial economy, and we saw manufacturing activity slow in the second half of 2019.”

Graphic: Jason Miller, Michigan State using BLS data

And while the not seasonally adjusted number for truck transportation as a whole dropped in December, the more specific truckload data through November showed what Miller said was “a major upward movement” for the first time since “the ending of lockdowns.”

“Employment in that sector finally moved above 2017 levels,” he added.

Graphic: Jason Miller, Michigan State using BLS data

Among some of the other highlights in the monthly report:

— The producer price index (PPI) in the NAICS truck transportation sector, which starts with the numbers 484, shows the pressure that cost inflation is bringing to moving freight by truck. The PPI for that number rose in November to 149.4. (December data is not available yet.) That is the highest level ever and has now jumped from 140.6 in May to its November level. Even in the hot freight market of 2018, it never rose above 146.9.

— Surprisingly, that increase in PPI didn’t come with a significant boost in wages between October and November. Average hourly earnings for production and nonsupervisory employees, according to the BLS, rose to $25.15 in November, up just 3 cents from the month before. However, it is up significantly from the $24.60 posted in August. 

— The strong transportation and warehousing sector, which includes all NAICS categories that begin with 48 or 49, saw its total employment rise to 5,588,800, up from 5,542,200. But just like the numbers in the truck transportation sector, it hasn’t reached year-ago numbers, which are 67,100 less than December 2019. But that has narrowed by an enormous amount. The year-to-year gap in May was 518,300 jobs. The unemployment rate in the sector ticked up to 9.3% from 9%. It’s the second consecutive month of an increase, as it stood at 8.9% in October.

— The more specific warehousing and storage sector continues to climb higher. It posted seasonally adjusted job totals of 1,295,500 in December, up from 1,287,300 jobs. A year ago, it was 1,192,000. Unlike truck transport, which saw a decline in the not seasonally adjusted numbers, warehousing and storage rose on that basis, to 1,326,300 jobs from 1,319,000 jobs. 

More articles by John Kingston

New federal rule on worker classification may not see light of day

California’s Prop 22 spurred by AB5 finds early victims: grocery delivery drivers

Trucking companies may be faring too well for obtaining more PPP funds

Image post
Reddit

My route in 2020 (started in Sept)

Rss

Featured Truck of the Week Scetta Motorhome

Today’s truck is a cool Peterbilt Motorhome brought to you by the Big Rig Truck Nationals. Each week Bruce picks a cool truck from the many truck shows he attends. Hearing about them is one thing, seeing them is another. Check out this cool ride!

Check out the video on this featured truck by clicking here

This episode is sponsored by Rosedale Transport offering career opportunities for truck drivers with their large network. You can learn more at www.rosedalegroup.com

About the Show

JOIN THE LEAD PEDAL PODCAST FAN CLUB www.TheLeadPedalPodcastFanClub.com

LISTEN TO LEAD PEDAL RADIO at www.LeadPedalRadio.com

The Lead Pedal Podcast for Truck Drivers talks all things trucking for people in the transportation industry helping them improve their business and careers. Interviews with industry professionals and truck drivers, trucking information, and other features on the industry are meant to be helpful for truck drivers and those in transportation. The Lead Pedal Podcast for Truck Drivers has main episodes released every Monday, Wednesday, and Friday with bonus material on other days. You can learn more about the host and show on our website and make sure to SUBSCRIBE to the show on your favourite podcast platform. www.theleadpedalpodcast.com

What does The Lead Pedal Podcast mean? The Lead (pronounced - Led) stands for acceleration or fast-track of your career or business. It is a play on words and we certainly are not here promoting speeding in the industry. We are hoping this information will help you become a professional driver faster than if you didn’t know about many of these topics.

Are you enjoying the show? If so we would appreciate you leaving us a rating and review on iTunes or on your favourite podcast platform. The show is available at www.theleadpedalpodcast.com  , ITunes, Stitcher, Spotify, Tunein, iHeartradio, SoundCloud, and other popular podcast platforms. Thanks for listening

Join The Lead Pedal Podcast Fan Club where are loyal fans get first chance at specials, discounts on merchandise and much more.The club is free to join and you can learn more at www.theleadpedalpodcastfanclub.com 

Rss

[caption caption="US Customs and Border Protection currently only scans about 15 percent of commercial cargo and 1 percent of personal vehicles entering through land ports with non-intrusive inspection equipment. Photo credit: CBP."][/caption]New legislation will eventually require the US Department of Homeland Security (DHS) to use X-ray technology to inspect every...

Rss

Rihm Kenworth, a long-time truck dealership in Minnesota, opened a new facility in Albert Lea this week to meet the

The post Rihm Kenworth Opens New Dealership in Albert Lea appeared first on NextTruck Blog & Industry News - Trucker Information.