DOT Freight Transportation Index Falls 0.9%

The Department of Transportation’s freight transportation services index fell 0.9% in August from the same month last year, DOT said Thursday.

The freight TSI fell 0.6% to a reading of 109.0 from July, DOT said. The index uses a baseline 100 reading from the year 2000.

August shipments were 4.4% below the all-time high level of 114.0 in December 2011.

The freight TSI is a seasonally adjusted monthly index measuring the output of services provided by the for-hire transportation industries, including railroad, air, truck, inland waterways, pipeline and local transit.

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Jonjo Transportation Refrigeration buys Thermo King Eastern Canada

MISSISSAUGA, Ont. -- Jonjo Transportation Refrigeration (JTR) has purchased Thermo King Eastern Canada (TKEC) from Ingersoll Rand. Jonjo is an independent transport refrigeration sales, service and parts company with more than 25 years in the industry. Thermo King Eastern Canada offers service to customers from several locations in Ontario and Quebec as well as Moncton, N.B. and Dartmouth, N.S.

"The combination of TKEC with our years of industry experience will provide our customers an unparalleled level of service and support," said John O'Dwyer, president of JTR.

"JTR's exceptional customer focus, local market experience, and long-term stability made them the obvious choice to become the partner that will enable our continued growth in Eastern Canada," said Ken Hartman, director of dealer development for Thermo King in North America.

Jonjo officials say they will use Thermo King’s existing locations, product offerings and “leverage TKEC's strengths to provide industry-leading solutions to all of its customers.”

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Cost of ground transportation for Canadian shippers drops in June: CGFI

TORONTO, Ont. -- The cost of ground transportation for Canadian shippers decreased 1.3 % in June when compared with May results, according to the latest results from the Canadian General Freight Index (CGFI).

The Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, decreased by 0.95% when compared to May.  

Average fuel surcharges assessed by carriers have seen a decrease from 22.1% of base rates in April to 20.8% in June.

"Looking back, total freight costs have now registered close to the same level as June 2011," said Doug Payne, president and COO of Nulogx, which facilitates the CGFI. "It appears that the combinations of downward pressures on base rates are being offset by higher fuel and accessorial charges from a year ago."

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Transportation Bill Loaded with Safety Initiatives, FMCSA Says

ALEXANDRIA, Va. — The highway bill passed earlier this summer directs the Federal Motor Carrier Safety Administration to complete 29 new rulemakings over the next 27 months, including a requirement for a final electronic logging device rule by October of 2013, agency officials said Monday.

In a briefing before the agency’s Motor Carrier Safety Advisory Committee, John Drake, FMCSA’s director of governmental affairs, said federal regulators will be busy the next few years not only meeting mandates for new regulations, but also responding to congressional requirements to implement 34 programmatic changes and complete 15 reports.

Between now and early 2013 alone, FMCSA plans to issue a remedial electronic logging device supplemental proposed rule, a proposed safety fitness determination rule, a final unified registration system rule, a drug and alcohol clearing hours proposed rule, and a “patterns of safety violations” proposed rule that will focus on truck and bus executives who turn a blind eye to unsafe business practices.

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Durable Goods Orders Rise on Higher Transportation Orders

Durable goods orders rose in July but declined excluding transportation orders, the Commerce Department said Friday.

Overall orders for goods mean to last at least three years rose 4.2%. Excluding transportation orders, which tend to be volatile, orders slipped 0.4%.

Orders for motor vehicles and parts improved 13%, while civilian aircraft orders jumped 54%.

Bookings for non-defense capital equipment excluding aircraft fell 3.4%, Bloomberg reported. Economists’ median forecast for overall orders was a 2.5% gain, Bloomberg said.

Durable goods include large items like refrigerators and air conditioners. Trucking is a major beneficiary of durable goods manufacturing, hauling both components and finished goods.

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COMPETITION WATCH: Wheels Group buys MSM Transportation

BOLTON, Ont. -- MSM Transportation has been purchased by Wheels Group in an $18.6-million deal expected to wrap up by the end of September.

MSM has been named one of Canada’s 50 Best Managed Companies for 15 straight years and has operations in Bolton, Ont. as well as in California. It boasts same-day service within southern California and has established high-volume consolidation lanes to major Canadian cities and select US destinations.

“The acquisition of MSM supports our strategic goal of enhancing and broadening Wheels’ portfolio of logistics services by adding a well-established multi-national LTL component,” said Doug Tozer, CEO of Wheels. “MSM customers will benefit with access to additional logistics services provided by Wheels. A quick integration is anticipated, given the high degree of compatibility between information systems and with both companies being ISO registered for over a decade.”

MSM earned revenue of about $44 million in 2011. The purchase price is about $18.6 million, Wheels Group reported.

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N.B. government funnelling $1 million into museum's transportation centre

MONCTON, N.B. -- The government of New Brunswick is investing $1 million in the construction of the Moncton Transportation Discovery Centre, an extension of the Moncton Museum.

“Working with partners to invest in leading tourism experiences is an important part of our government's plan to rebuild New Brunswick's economy,” said Premier David Alward. “This investment will allow the City of Moncton to offer visitors an even greater experience visiting the new Transportation Discovery Centre and the Moncton Museum under one roof.”

Using an interactive approach, the centre will illustrate the fundamental role transportation has played in shaping the history and growth of Moncton will highlight the city's position as the transportation hub of Atlantic Canada.

The centre will feature exhibition galleries, an interactive exhibit on all modes of transportation, an education centre, a gift shop, café, and an interior public plaza designed to preserve the 1916 sandstone façade of the former Moncton City Hall.

The new centre is expected to attract thousands of additional visitors to the museum each year, according to officials. The 19,000-sq.-ft. addition is scheduled to open its doors in the summer of 2013.

“The Transportation Discovery Centre will honour Moncton's transportation history and heritage from shipbuilding to the railroad, from trucking to air transportation, and looks forward to today's information highway in a truly educational and family-friendly environment,” said Deputy Mayor Merrill Henderson. “The province's financial support highlights the importance of this new centre, both for Moncton residents and our visitors.”

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White House Offers States Half-Billion Dollars for Transportation Projects

The Obama administration will offer almost half a billion dollars in unspent highway funds to states for transportation projects, the Associated Press reported.

The money was initially allocated to the Transportation Department for earmarks from 2003-2006. 

The Republican-controlled House has since banned earmarks and the White House has said that the money should go to improve the nation’s highways, transit system and ports rather than letting it sit idle, the AP reported.

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Ground transportation costs drop in May: CGFI

TORONTO, Ont. -- The cost of ground transportation for Canadian shippers decreased 0.29% in May when compared with April results, according to the latest results from the Canadian General Freight Index (CGFI).

The Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, decreased by 0.3% when compared to April.

Average fuel surcharges assessed by carriers have seen a decrease from 22.4% of base rates in April to 22.1% in May.

“We are experiencing a marginal decrease in base rates and a slight increase in accessorials, while fuel remained relatively flat,” said Doug Payne, president and COO of Nulogx, which facilitates the CGFI. “It appears that marginal base rate gains in the domestic LTL and truckload markets were offset by marginal decreases in the cross-border LTL and truckload markets.”

For more information, visit www.cgfi.ca.

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N.A. surface transportation soars 13.8% in September

WASHINGTON, D.C. -- Trade using surface transportation between Canada, the US and Mexico was 13.8% higher in September than in September 2010, totalling $77.7 billion, according to the Bureau of Transportation Statistics (BTS) of the US Department of Transportation.

BTS reported that the value of US surface transportation trade with Canada and Mexico in September rose 35.7% in two years from September 2009 and 83.0% when compared to September 2001.

Imports in September were up 71.3% since September 2001, while exports were up 99.0%.

In September, 85.6% of US trade by value with Canada and Mexico moved via land, 9.8% moved by vessel, and 4.5% moved by air.

The value of US surface transportation trade with Canada and Mexico decreased 3.3% in September from August.

US-Canada surface transportation trade increased compared to September 2010 reaching $46.1 billion, a 14.7% increase.

In September trade by state, Michigan led all states in surface trade with Canada as it has in previous years, at $6.0 billion, a 9.6% increase from September 2010.

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Toronto Transportation Club announces 2012 executive committee

TORONTO, Ont. -- The Toronto Transportation Club has announced its executive committee for 2012. The vote was held at the TTC's annual general meeting at the Royal York Hotel yesterday. 

Claudia Milicevic, senior director and general manager of TransCore Link Logistics, was elected president; John Foss, account manager at Trailcon Leasing, was elected first vice-president; and Peter Collins, vice-president of sales and marketing at Durabody Industries was elected second vice-president. Gary Crowther, director of sales for Canadian National Railway, will remain on the executive committee as immediate past president.

The 2012 board of the Toronto Transportation Club includes:

-Bruce Rodgers, country manager, CEVA Freight Canada Corporation

-David Wood, operations manager, Mother Parkers Tea and Coffee

-D.J. Massicotte, vice-president and general manager, Performance Logistics

-Jim Wade, sales representative, MSM Transportation

-Kathy Penner, associate publisher, Truck News/Truck West

-Lori McCreight, vice-president, strategic accounts, Canada Cartage

-Mary Clarke, manager, cargo domestic sales, Air Canada

-Neil McKenna, vice-president, transportation, Canadian Tire

-Peter DiTecco, president, Armbro Transport

-Peter Collins, vice-president, Durabody Industries

-Robert McDonald, president, Apps Transportation Group

-Tim Boyce, director, Toronto Transportation Club

-Brian Wright, director of sales, Canadian Pacific Intermodal

The AGM was followed by the Club's annual dinner attended by more than 800 industry professionals. Entertainment for the evening was provided by Canadian Comedian of the Year, Ron James.

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Ground transportation costs remain constant, base rates fall in September

TORONTO, Ont. -- The cost of ground transportation for Canadian shippers in September remained the same month-over-month, according to the latest figures from the Canadian General Freight Index (CGFI).

However, the Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, decreased by .1% for the same period. It was the first decrease in base rates since March.   

Offsetting the decrease in base rates were slight increases in both average fuel surcharges assessed by carriers and other accessorial charges. During this period, fuel surcharges assessed by carriers equated to 20.16% of base rates, up from 20.1% in August. The combined effect of lower base rates and higher accessorial charges resulted in no change in average transportation costs for Canadian shippers, according to the report.   

"The slight decrease in Base Rates was predominantly driven by reduced costs in the transborder truckload sector," said Doug Payne, president and COO of Nulogx. "Over the summer, these movements were subject to significant cost increases and it is possible that these are easing somewhat."

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Software Firms Partner to Cut Invoicing Time for Transportation Companies

Quadrant Software on Monday announced a partnership with document imaging company Real Vision Software to reduce invoicing time for transportation and distribution companies.

The companies have launched the Mobile Signature Capture System, which allows companies to send out invoices for products and services the instant those products are delivered and signed for, said Quadrant, which provides document output management software.

The system enables companies to create forms from IBM i-based applications, route them throughout an organization or to customers, archive those documents electronically and make them available for both remote and tethered digital signature capture on the iPhone, iPad or iPod Touch, the company said.

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Hub Group Buys Challenge Transportation

Hub Group Inc. said that its Comtrak Logistics Inc. subsidiary has acquired Newark, N.J., intermodal drayage carrier Challenge Transportation. No terms were announced.

“This acquisition continues to build on our strategic initiative of growing Hub Group's North American drayage network,” Hub Group chief intermodal officer Chris Kravas said in a statement. He added the deal is Comtrak’s third acquisition in the past 12 months and gives the division its 26th full service terminal.

Challenge Transportation has 41 drivers who make container deliveries throughout the Northeast, Hub Group said. Jan Hopper, who founded the company in 1995, was named Comtrak Logistics’ vice president of recruiting and sales.

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Prophesy Transportation Debuts Fuel Card Module

Trucking and logistics software provider Prophesy Transportation Solutions announced the release of its Advanced Fuel Card Manager module for DispatchSeries.

Prophesy said the module offers integration with QuickBooks Accounting software as well as flexible controls to calculate user cost allocations.

The fuel card manager module allows users to specify how fuel costs will be absorbed, to set up different advance types, and to transfer fees as well as access up to three different fees for each driver, Prophesy said.

In 2008, Prophesy was bought by Accellos Inc.

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ATA question Transportation Secretary's views on Hours-of-Service

ARLINGTON, Va. -- American Trucking Associations president and CEO Bill Graves and association chairman Dan England are questioning Transportation Secretary Ray LaHood's contention in a letter to Congress that the administration is drafting a new Hours-of-Service proposal based on the "most comprehensive and up-to-date data and analysis."

In an Oct. 21 letter to the secretary, Graves and England said LaHood's contention was well off-base.

"There is little or no comprehensive, up-to-date evidence, data or science supporting FMCSA's proposal," ATA wrote. "FMCSA readily admitted it did not have sufficient data on which to base a driving time limit change, yet the agency argued for and stated it 'currently favours' reducing the limit."

Graves and England said this wording is "a clever way of attempting to shift the burden of proof to the industry to justify the current drive-time limit."

ATA's letter goes on to point out the flaws in FMCSA's research and supporting arguments relating to fatigue's involvement in large truck crashes.

The pair also took issue with the department's contention that a delay in circulating the final rule would "create confusion and uncertainty" around the regulation, noting that "the record . . . is replete with industry and state law enforcement commentary on how much confusion and uncertainty the proposed changes would cause if finalized."

Graves and England said ATA agreed with LaHood on the need to do everything possible to promote safety on US highways, but criticized the department for forgoing other, more promising safety strategies in favour of an unnecessary revision of the Hours-of-Service rule.

"Too many other safety-critical opportunities have been lost . . . and we hope your department will stand behind the current rules and shift resources to other high priority issues that will have a meaningful impact on highway safety - issues such as sleep disorders that are not even currently addressed by FMCSA guidelines much less rules," Graves and England wrote.

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Cavalier Transportation Group announces new VP business development

BOLTON, Ont. -- Cavalier Transportation Group has appointed Rick Brooks to vice-president of business development. Operating out of Buffalo, N.Y., officials said Brooks will be working closely with the company's US marketing partners, managing select corporate accounts and developing new opportunities for Cavalier, including the continued growth of its domestic US logistics business.

Brooks recently held the position of senior vice-president of sales for a leading expedited carrier. Over his career, he has held senior management roles with USFreightways, CP Express and Intercity Truck Lines. Brooks will be reporting directly to Brian Ledson, executive vice-president of sales and marketing for the Cavalier Transportation Group.

"Our family has known Rick for a long period and in the past, Rick has worked closely with other members of our current senior executive. Having someone of Rick's calibre join our team is a real asset to us," Ledson said. "He is knowledgeable, professional and personable. With the steady growth of our business, south of the border, the timing of his appointment couldn't be better."

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