ATA expects US trucking industry to grow over next decade

2014-01-16

ARLINGTON, Va. — The American Trucking Associations (ATA) have released a few highlights about what the organization expects to happen in the industry over the next decade.

In its recently released U.S. Freight Transportation Forecast to 2024, the ATA says the percentage of tonnage hauled by truck is going to go up. It predicts that by 2014, the industry will see an increase of 2.3%, meaning it will be responsible for carrying 70.8% of all tonnage, versus the 68.5% share it had of the market in 2012.

The ATA also expects to see overall freight revenues to rise by up to 63.6% over the same time period, reaching US$1.3 trillion in 2024. The trucking portion of that will rise slightly from 80.7% of the total to 81%.

Truckload volumes are forecasted to grow 3.2% through 2018 and then increase 1.1% annually between 2019 and 2024. In comparison, LTL volume should increase 3.5% annually through 2018 and then 2.4% until 2024.

The ATA calls the expected growth of rail carloads “anemic” with 1.5% annual growth through 2018, and then just fractional growth—0.4% per year—after that, which means its market share will decline to 14.2%. In 2011 the market share for rail carloads was 14.8%.

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Fishy freight nets Alberta trucking company big fine

2014-01-16

WINDSOR, Ont. -- An Edmonton trucking firm and its Markham, Ont.-based driver have been fined a total of $75,000 for trying to bring live Asian carp into Ontario.

Alltheway Trucking and Yong-Sheng Zhang were each found guilty under the federal Fisheries Act, of possessing live invasive fish, according to the Ontario Ministry of Natural Resources. The bulk of the fine, $70,000, was assessed to the trucking company.

On Jan. 25 2012, a truck from Alltheway Trucking was stopped at the Ambassador Bridge and found to be carrying grass and bighead carp from Arkansas. Some of the grass carp were still alive, leading to the seizure of all the fish.

On Feb. 28, the same driver and same trucking company were again stopped at the border as they attempted to bring a load of carp - some still alive - into Canada.

This time, the truck was also confiscated, and held until all the carp had died. The Ontario Court of Justice in Windsor handed down the fine today.

“It has been illegal to possess live invasive fish, including bighead, grass, black and silver carp, in Ontario since 2005 because of the significant threat they pose to the province’s lake systems,” the Ministry of Natural Resources said in a release. “As part of the ongoing efforts to protect Ontario’s environment from the importation of invasive species, the Ministry of Natural Resources will continue to work with its law enforcement partners to monitor compliance with the legislation.”

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Trucking company complains of selection process for Pan Am Games logistics provider

2014-01-13

TORONTO, Ont. -- The selection of DB Schenker as the official logistics provider of the 2015 Pan Am Games did not give a fair shot to local trucking and logistics providers, one local firm has complained.

In an interview with the Toronto Star, John Flynn, vice-president of sales and marketing for Seneca Transportation and Logistics, said that the selection process was slanted in favour of large multi-national corporations. He said only eight companies were invited to bid on the job and were asked to put up a minimum of $1 million in sponsorships.

“This is a low blow for Ontario-based logistics companies,” Flynn told the Star. “The problem is they just shut everyone out.”

DB Schenker, according to the Star, will offer more than $1 million in in-kind services.

“DB Schenker is owned by the German railroad (Deutsche Bahn) and it has got deep pockets,” Flynn said, adding that “we are in a really slow economy here in Ontario and we are fighting out for survival.”

You can read the full report here.

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New executive in charge of Gibson's trucking operations

2014-01-13

CALGARY, Alta. — Gibson Energy Inc. has named a number of new executives, including one who will oversee trucking operations.

Rick Wise was appointed chief operating officer. In his new role, Wise will be responsible for managing Gibson's operating activites in its truck transportation, terminal and pipelines, retail propane and processing, and wellsite fluids businesses.

In Canada, Gibson is a midstream energy company. In the US it acts as a service provider to the oil and gas industry. Its trucking network operates in Western Canada and reaches into the American market.

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Clock Ticking for Trucking Hours-of-Service Changes

William B. Cassidy, Senior Editor | Apr 01, 2013 7:17AM EDT

When it comes to new hours-of-service rules, it’s not minutes or hours that trucking companies and shippers should be counting, but a driver’s weekly turns.

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Port Metro Vancouver Unveils Trucking Initiative

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JOC Staff | Feb 22, 2013 11:55AM EST

Port Metro Vancouver in British Columbia has introduced its Smart Fleet trucking strategy, a three-year action plan to improve the efficiency and reliability of the container truck sector and reinforce the port’s ongoing collaboration with supply chain partners.

Smart Fleet’s key initiatives include a forum for terminal operators and industry leaders to work openly to solve drayage challenges; the expanded use of GPS communications; the identification of technology-based solutions to improve sustainability; a truck licensing system review to improve performance, safety and environmental standards; a container vessel on-time incentive program; and the continuation of container capacity improvement projects.

“Given that a large proportion of container traffic moves to and from the terminals by truck, improvements to reliability and efficiency are vital,” said Robin Silvester, the port’s president and CEO, in a written statement. “Smart Fleet sets out our action plan to ensure we are maximizing existing capacity and improving operational efficiencies as the gateway grows to service our nation’s trade requirements.”

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FTR Trucking Index Reflects Improved Freight Growth

JOC Staff | Mar 14, 2013 1:50PM EDT

FTR’s Trucking Conditions Index for January, published in its March 2013 Trucking Update, jumped 2.2 points from the previous month to a new reading of 10.6, reflecting improved freight growth and the expectation for tighter capacity.

The TCI is expected to continue at a high level as regulations affecting trucking utilization go into effect in mid-2013. Conditions through 2014 will remain in the “strongly positive territory,” as companies’ ability to raise rates in a tight capacity environment is likely, the Nashville, Ind.-based company said.

“While the sequester is now in effect, we have seen enough indications of an improving economy to expect a growing freight market in 2013,” said Jonathan Starks, director of transportation analysis for FTR, in a written statement. “As regulators impose the changes to hours-of-service rules in July, capacity will further tighten to levels not seen since 2004.”

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Trucking Tonnage Index Edged Up in February

JOC Staff | Mar 20, 2013 4:17PM EDT

The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index increased 0.6 percent to 123.6 in February, after increasing 1 percent in January to 123.

February was the fourth month in a row showing an increase in tonnage. Over the last four months, tonnage cumulatively increased 7.7 percent.

Compared with February 2012, the seasonally adjusted index was up 4.2 percent, just below January’s 4.6 percent year-over-year gain. Year-to-date, compared to the same period in 2012, the tonnage index is up 4.4 percent.

“Fitting with several other key economic indicators, truck tonnage is up earlier than we anticipated this year,” said Bob Costello, ATA’s chief economist, in a written statement. “While I think this is a good sign for the industry and the economy, I’m still concerned that freight tonnage will slow in the months ahead as the federal government sequester continues and households finish spending their tax returns. A little longer term, I think the economy and the industry are poised for a more robust recovery.”

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TNT Express Sells Chinese Trucking Business

TNT Express has sold its domestic Chinese trucking business, TNT Hoau, kicking off the Dutch delivery company’s stand-alone strategy after a failed $6.8 billion takeover by UPS.

TNT did not say how much the buyer, CITIC PE, China’s state-owned private equity fund, is paying for Hoau, which it has owned since 2007.

It expects to close on the deal, which requires regulatory approval, in the second half of 2013, with part of the payment being settled in 2014.

Shanghai-based Hoau, which is thought to be marginally profitable, is one of China’s largest road distribution companies offering day-definite deliveries through a network of 1,500 depots serving more than 600 cities.

“In the past few years, Hoau has transformed itself into a leading nationwide operator in China. The change of ownership secures the ongoing growth and development of the company,” said Bernard Bot, TNT’s interim chief executive.

Following the deal, “TNT Express will focus on offering the broadest range of international services to and from China,” Bot said.

Bot said the sale of Hoau was “imminent” on Monday when he unveiled plans to shed 4,000 jobs, six percent of TNT’s payroll, shrink its intercontinental air capacity, and focus on its core European market, as it adjusted to European anti-trust regulators’ blocking the UPS takeover.

TNT is now looking for a buyer for its domestic Brazilian operation, which remains unprofitable but has reduced losses in the first two months of 2013.

The company said the restructuring program is targeting annual savings of 220 million euros ($282 million) and will result in a one-off charge of 150 million euros ($192 million).

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How Trucking Balanced Volume Gains, Cost Pains

William B. Cassidy, Senior Editor | Mar 22, 2013 9:54AM EDT

The trucking industry ended 2012 on a stronger note than expected, with healthy gains in volume, muted increases in pricing and troubling increases in operating costs.

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Trucking conditions improve in August: FTR report

NASHVILLE, Ind. -- Trucking conditions improved in August, rising 1.4 points from July to a reading of 5.8, according to the latest Trucking Conditions Index, published by FTR.

The index has been in mildly positive territory, but without clear direction, since the economy weakened in early 2011, according to FTR officials. FTR expects trucking conditions to improve in 2013 because of modestly better economics and a strong increase in capacity utilization stemming from added constraints on trucking from federal regulations taking effect in mid-year 2013.

The Trucking Conditions Index is a compilation of factors affecting trucking companies. Any reading above zero indicates a positive environment for truckers. Readings above 10 signal that volumes, prices, and margins are in a solidly favourable range for trucking companies.

“Setting aside the inherent economic risks at the moment, we expect the rate environment to improve for fleets as capacity tightens in 2013 when more stringent Hours-of-Service rules go into effect,” said Jonathan Starks, director of transportation analysis for FTR. “This will also have the effect of worsening the driver shortage, moving the situation from the currently ‘tight-but-manageable’ level towards a more acute shortage, similar to that experienced back in 2004, when the last major rule change went into effect. Importantly, truck fleets will also need to keep a keen eye on the economic environment heading into 2013 because a major downshift in growth would have major negative implications on margins just as the new tranche of HoS regulations go into effect.”

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Trucking Technology Likely to Be Affected by Wireless Capacity Crunch, Official Warns

By Seth Clevenger, Staff Reporter

This story appears in the Aug. 27 print edition of Transport Topics. Click here to subscribe today.

MINNEAPOLIS — Trucking companies that rely on wireless technology to improve their operations soon could feel the effects of a looming “capacity crunch” facing the nation’s wireless carriers, an industry leader told truckers.

“We are fast approaching a serious capacity crunch, and when that happens, the great innovation and service you’ve come to expect could be challenged,” Steve Largent, president of CTIA, a trade group representing the wireless communications industry, said Aug. 13 here.

“We simply need more spectrum, more highways to handle the traffic that we know is coming,” he said.

The former Republican U.S. congressman from Oklahoma urged attendees to contact their elected officials and ask them to open up more spectrum for the wireless industry.

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Revolution Oil offering free product test, oil to Canadian trucking companies

CALEDONIA, Ont. -- Revolution Oil is offering qualified trucking companies in Canada the opportunity to test its HI-TEK25 product for free. In addition, the Mooresville, N.C.-based firm is offering qualified Canadian companies an ongoing Pay for Performance option that would include providing oil free of charge. The corresponding savings on fuel costs are then shared, and under the program, companies will not have to pay for oil, the company says.

“Revolution Oil believes it can successfully access the trucking fleets throughout Canada and help reduce the rising fuel prices that have been known to cripple trucking companies finances,” officials said in a release.

Caledonia, Ont.-based TransRep has been helping Revolution Oil in the promotion and sales in Canada.

“This business model is certainly unique. Revolution Oil has warranty letters from all the major engine players to back this product,” said Kim Richardson, president of TransRep. “For any trucking company, oil is a major expense to the bottom line.”

For more information, call TransRep at 905-541-3319.

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Utah Trucking Assn. Names New Executive Director

The Utah Trucking Association has selected former Utah Department of Transportation official Rick Clasby to be its new executive director.

Clasby was formerly head of UDOT’s motor carrier division and is currently CEO of HELP Inc., a not-for-profit public-private partnership that deploys of transportation technologies to benefit the public, government and motor carrier industry.

Clasby will begin with the association in November. The appointment follows the previously announced retirement of UTA’s Dave Creer.

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COMPETITION WATCH: Britton Transport acquires North Dakota trucking firm

GRAND FORKS, N.D. -- Britton Transport, a US subsidiary of Bison Transport, has acquired Scott’s Express and Scott’s Transportation Services, located in Grand Forks, N.D. Scott’s is a nationwide trucking and truck brokerage company, specializing in agribusiness throughout the US and parts of Canada

"The acquisition of Scott’s expands and builds upon Britton’s customer relationships and capabilities as a logistics service provider in the Red River Valley,” said Dave Britton, president of Britton. “Scott’s has a long tradition of service excellence among agricultural shippers within the valley and will continue to service its customers with Britton’s support. We are excited about the opportunity to serve Scott’s long-term customers with Britton’s asset-based capabilities.”

Brad Seymour, president of Scott’s, will continue with the company in the transition of ownership and servicing of Scott’s customers. He says, “I have known Dave Britton for over 25 years and have a high regard for the way Britton does business. We are very pleased to be joining forces with Britton and I feel it gives our employees and our customers a platform to grow in the years ahead.”

Founded in 1952, Scott’s was initially operated as a filling station, but soon after began sourcing trucks on behalf of local potato farmers, becoming the first truck brokerage in the Red River Valley. Today, Scott’s continues to service the potato and specialty crop sector.

Financial details concerning this transaction have not been disclosed.

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NRF and NCCR join legal fight against new US trucking regulations

WASHINGTON, DC - The National Retail Federation and its National Council of Chain Restaurants division have joined a coalition of manufacturers, shippers and transportation providers to file an amicus brief before the U.S. Court of Appeals opposing new federal trucking regulations on drivers’ hours-of-service, stating the regulations were arbitrary and capricious.

“The retail industry is at the crossroads of the supply chain, interconnecting manufacturers and suppliers with vendors and customers,” NRF President and CEO Matthew Shay said. “It is the retail industry’s responsibility to get products to market and into consumers’ hands in a safe and timely manner. It is a responsibility that we hold dear. Any new regulation that impedes that ability increases our transportation costs, increases consumer prices, and jeopardizes the fragile economic recovery.”

The joint friend-of-the-court brief challenges the Federal Motor Carrier Safety Administration’s new hours-of-service regulations. The new rules require mandatory and specified truck driver work breaks, rest periods, and changes the already existing 34-hour restart period to include consecutive nights off. NRF had previously filed comments with the FMCSA during the rulemaking process to express the retail industry’s concerns.

“The Administration failed to take into account the serious economic ramifications faced by  the broader supply chain community when drafting these rules,” Shay said. “NRF and NCCR believe that the new requirements will only drive up costs, make trucking less safe, increase congestion, and ultimately hurt job growth and the economy. Any change in supply chain policy should be based solely on science and fact.”

The joint brief also supports another FMCSA decision that preserved the 14-hour driving window and 11-hour on-time driving requirement. This aspect of the regulation is being challenged in court by Public Citizen.

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Unemployment Rate Holds at 8.2%, Trucking Gains 2,000 Jobs

The U.S. unemployment rate held at 8.2% in June trucking improved by 2,000 jobs, the Labor Department said Friday.

The transportation sector, of which trucking is a subset, added 25,300 jobs, according to the department’s Bureau of Labor Statistics.

Employers added 69,000 jobs to non-farm payrolls, following a revised 77,000 in May that was revised upward. Private-sector employment rose by 84,000 jobs, the weakest in 10 months.

Economists had forecast a 100,000 gain in non-farm jobs, Bloomberg reported.

Manufacturing employment rose by 11,000, more than the 7,000 increase forecast, Bloomberg said. Construction employment rose by 2,000 jobs.

The payroll and unemployment figures are obtained by separate surveys, with payrolls from a survey of employers and the unemployment rate from a survey of households.

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First Reaction to HOS Rule Is Largely Negative from Trucking, Shippers

Trucking and shippers groups reacted swiftly and negatively to the Department of Transportation’s final hours-of-service rule, citing the potential for more congestion and saying it will not improve highway safety.

On the other side of the issue, a citizens’ safety group also said the rule was flawed, though for different reasons.

Click here for TT’s Special Report on the HOS rule. (TT subscription or 14-day pass required.)

The final rule “puts safety in the back seat,” American Trucking Associations said in a statement following the rule’s release Thursday.

“Even with an uptick in truck-involved fatalities in 2010, since the current rules went into effect in 2004, fatalities have fallen 29.9%, even as overall miles traveled for trucks has risen by tens of billions of miles,” said ATA Chairman Dan England, chairman of truckload carrier C.R. England.

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Unemployment Rate Falls to 8.6%; Trucking Adds 3,600 Jobs

The unemployment rate dropped in November to 8.6%, the lowest in more than two and a half years, while the economy added 120,000 jobs, including 3,600 trucking jobs, the Labor Department said Friday.

Total transportation and warehousing sector employment rose by 8,300 workers, Labor figures showed.

The unemployment rate, which fell from 9% in October, marked the lowest level since March 2009.

Economists had projected that the unemployment rate would hold at 9% and the jobs gain was slightly below economists’ forecasts of 125,000, Bloomberg reported.

The payrolls gain followed a revised 100,000 increase in October that was larger than the 80,000 originally reported.

The payroll and unemployment figures are obtained by separate surveys, with payrolls from a survey of employers and the unemployment rate from a survey of households.

Factory employment edged up by 2,000 after a 6,000 increase the previous month, while service employment climbed by 126,000 jobs.

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Trucking conditions decline in October: FTR

NASHVILLE, Ind. -- FTR's Trucking Conditions Index (TCI) declined to a reading of 3.4 in October. The environment for truckers as measured by the TCI softened primarily due to further delay in the issuance of revised Hours-of-Service regulations, according to FTR officials. "This is affecting the near-term outlook for capacity and therefore the current ability of carriers to gain rate increases," FTR said in a release.

FTR is projecting the TCI to increase as capacity conditions tighten, but the peak has been moved back from April to October of next year, reflecting the regulatory delay.  The Trucking Conditions Index is a compilation of factors affecting trucking companies and has remained in positive territory for the past eight months. Any reading above zero indicates an adequate trucking environment with readings above 10 a sign that volumes, prices and margin are in a good range for trucking companies.

"There was a considerable drop of six points in the TCI in October. Some of this drop was a result of changes in our methodology for calculating the TCI as we continue to refine this measurement," said Larry Gross, senior consultant for FTR.

"Although October's TCI reflected the rather subdued nature of the fall peak at that point in time, the recent strong start to the holiday shopping season combined with retailers' lean inventories cause us to believe that the TCI will soon resume climbing even in the absence of near-term changes in Federal regulations. The addition of any such changes, now expected to be announced by year-end, will exacerbate the trend."

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