Friday, September 14, 2018
GlobalTranz
GlobalTranz.com, Sep 13
GlobalTranz Enterprises, Inc., a leading technology-driven third-party logistics (3PL) solutions provider, today announced that it has signed a definitive agreement to acquire AFN Logistics, an award-winning leader in freight brokerage, 3PL logistics, and transportation management services. The acquisition further solidifies GlobalTranz’s position as a top freight brokerage firm and significantly increases its market share in 3PL services. The transaction is expected to close within 45 days.
5 Ways to Appreciate Truck Drivers Every Day [INFOGRAPHIC]
GlobalTranz.com, Sep 10
More than 80 percent of U.S. communities depend solely on trucking for delivery of their goods and commodities. In this country, we all rely on truck drivers in some way or another. Whether it’s to enjoy basic modern conveniences, receive life-sustaining medical supplies, or keep businesses thriving, our lives depend on the transportation industry and more importantly, our nation’s truck drivers.
Hurricane Florence
Hurricane Florence – Transportation Update and Shipper Impact
GlobalTranz.com, Sep 13
Hurricane Florence has been downgraded to a Category 2 storm but remains incredibly dangerous. Tropical-storm-force winds are hitting the NC/SC coastline right now and will increase to hurricane-force winds by tonight. Landfall is expected to reach the US mainland late tonight or Friday morning. Florence is expected to crawl along the coast of the Carolinas through Friday, producing catastrophic flooding and storm surge, before turning inland.
Despite slowdown, Hurricane Florence is “still a very dangerous storm”
FreightWaves, Sep 13
Despite the slowdown, Hurricane Florence is “still a very dangerous storm, and we still expect severe storm surge and catastrophic flooding in the Carolinas,” said Nelson. DTN notes that Florence remains a “large hurricane in regard to its cloud shield and wind field.” DTN anticipates the storm to increase in speed while overall decreasing in intensity, expecting that rapid weakening will occur once Hurricane Florence moves inland on Friday.
Freight rates swell ahead of Hurricane Florence
SupplyChainDive, Sep 12
Hurricane Florence, a Category 4 storm, is expected to reach the East Coast on Thursday or Friday. It’s impact on supply chains will depend on where it strikes, how far inland it travels, and where flooding events occur.
13 states now under FMCSA’s regs waiver declaration ahead of Hurricane Florence
Overdrive, Sep 12
The Federal Motor Carrier Safety Administration announced Wednesday it has added Tennessee and Kentucky to its list of states under the regional emergency declaration, bringing the total to 13 states and Washington, D.C.
Shippers & 3PL Industry
Note to CEOs (Part 5): Stop Blaming Your Transportation People—Support Them Instead!
Logistics Management, Sep 12
This has been the year that freight barged into the boardroom. It’s what happens when freight budgets are completely out of line with actual spending. If you want a better transportation budget for 2019, reach out for help, provide your transportation people with a seat at the table, and take the necessary steps to improve your systems.
Shipping Rates Plunge as Owners Fret About Trade War Impact
Bloomberg Markets, Sep 12
When U.S. President Donald Trump fired the first salvos in his trade war with China, the market for hauling bulk commodities that power the Asian country’s economy responded with a surprising surge. Now shipowners are losing their swagger.
Related: Ocean freight rates reach 2-year peak (SupplyChainDive)
Why USPS is the perfect fit for the last mile
SupplyChainDive, Sep 7
Advanced technology and working with shippers can help the Postal Service survive in an e-commerce dominated world. When it comes to deliveries, the digital age has changed everything, and it’s no secret that USPS is suffering. Where people used to write letters, they now use email. In the second quarter of 2018, for example, USPS package volume grew by 69 million pieces, but mail volumes declined by 700 million pieces.
Supply Chain Visibility: Can You See Me Now?
Inbound Logistics, Sep 11
Using technology to gain a clear view into your supply chain can both wipe out costs and pour revenue to your bottom line. German firm Merck KGaA, known as EMD Performance Materials Group in the United States, faced a challenge common to many companies.
Best Practices to Improve Your Truckload Service and Price
Logistics Viewpoints, Sep 13
While shippers face the difficult market conditions of tight capacity and increased consumer demands, they are also being challenged to find transportation cost savings and improve customer satisfaction. As shippers compete for capacity, many are asking what they could be doing to secure the best truckload performance and rates. Why do some shippers receive better service, and which best practices can others learn from them?
Transportation Markets
| Van, reefer rates surge in holiday-shortened week
Sep 2 – 8 – Activity on DAT Load Boards was down last week on account of Labor Day, but not by much. Van capacity was especially tight, and there was extra demand on the spot market because of FEMA loads heading to the Mid-Atlantic coast ahead of Hurricane Florence. Dry van and reefer shipments moved at higher rates, with the national averages for each trailer type up 6¢ and 8¢ respectively compared to the August average. The average flatbed rate fell 2¢ per mile. National average spot market rates for the past four weeks, including fuel surcharges, are shown in the above graph. Weekly rate snapshots reflect averages for the month to-date, from DAT RateView. Source: DAT Trendlines™ |
Spot freight market tightens as capacity improves
FleetOwner, Sep 07
Shippers posted 3% fewer spot market loads while available capacity improved 5% during the week ending Sept. 1, according to DAT Solutions, which operates the DAT network of load boards. National average spot rates softened but continue to trend nearly 20% higher compared to this time last year.
Cass Truckload Linehaul Index
Cass Information Systems, Sep 12
August’s Cass Truckload Linehaul Index continued the increasing rate of acceleration that began in 2017 by posting an 11.1% YoY increase to 138.4. This is the strongest percentage increase in the history of this index, and an all-time high on a nominal basis. “Three months ago, we increased our realized contract pricing forecast for 2018 from a range of 6% to 8% to a range of 6% to 12%, and current data is clearly signaling that the risk to our estimate may still be to the upside,” stated Donald Broughton, analyst and commentator for the Cass indexes.
FedEx Ground to add year-round Saturday service, matching UPS
DC Velocity, Sep 12
FedEx Corp. said today it will expand the U.S. operations of its ground delivery unit, “FedEx Ground,” to six days a week all year round, thus matching the frequency capabilities of UPS Inc., its chief rival, which launched Saturday service in 2017.
Trucking’s ‘year of upheaval’ — ELDs, economic growth force industry shifts
CCJ, Sep 12
Accelerated economic expansion, productivity constrictions of electronic logging devices, and major weather events threw trucking into unprecedented territory over the last year, sending shockwaves throughout the supply chain and the entire economy. Those conditions will likely remain in place, but rates growth and the capacity crunch will moderate over the next year as the supply chain readjusts to catch up to the new normal.
Is US trucking reaching the tipping point?
American Journal of Transportation, Sep 10
The U.S. trucking industry is under stress, that’s a given. Driver shortages, ELD regulations, traffic congestion, environmental standards, safety and a boom in demand are just a few of the stress points facing the trucking industry. Is technology the answer: maybe… or maybe not.
‘Bullish’ US truck market to last well into 2019
JOC, Sep 11
Trucking employment, according to US data, hit an all-time high in August. Class 8 truck orders set new records this summer. But to shippers, capacity still feels tight, and trucking rates are still much higher than a year ago. The “equilibrium” in pricing power they enjoyed in 2016 seems a distant memory.
Economy & Supply Chain
Global Oil Supply Hit a Record High in August as OPEC Ramps Up Production
WSJ, Sep 13
OPEC oil production surged last month, more than making up for a decline in Iranian supply due to U.S. economic sanctions, the International Energy Agency said Thursday. In its closely watched monthly oil market report, the IEA said crude oil output in the Organization of the Petroleum Exporting Countries climbed in August by 420,000 barrels a day, to average 32.63 million barrels a day.
New Highs for Transport Stocks Suggest Dow Rebound in Sight
WSJ, Sep 12
Shares of truckers, logistics operators and shipping companies are hitting fresh highs, a sign for investors that the Dow Jones Industrial Average could soon follow suit. The Dow Jones Transportation Average, which includes 20 large companies ranging from railroad operator CSX Corp. to delivery firm United Parcel Service Inc., climbed Monday to its 11th record close of the year. After snapping out of a lull in August, the transport index is up 8.5% in 2018.
Retailers under pressure despite recent gains
Retail Dive, Sep 11
Several analysts are taking retail projections down a notch in light of profit pressures despite healthy earnings reports in recent quarters, the Financial Times reports. Third quarter profit estimates have been cut for 52 (almost three-fifths) of the 89 S&P retail companies over the last three months, according to the publication’s analysis, based on Bloomberg citations.
Related: Amazon will dethrone Walmart as the No. 1 retailer of apparel this year, predicts Wells Fargo (CNBC)
Walmart Doubles Spending in Battle for Truckers
Transport Topics, Sep 10
The retailer will offer referral bonuses of up to $1,500, shorten the on-boarding process for new hires by more than a month and broadcast its first national TV ad focused on its 7,500 truckers. The program, which coincides with National Truck Driver Appreciation Week beginning Sept. 10, aims to fill vacancies and improve the image of long-haul driving as a career amid a tight labor market.
Related: Playing To Its Strengths: Why Walmart Must Focus On Its Stores And Logistics (Forbes)
U.S. Small Business Optimism Just Hit Its Highest Level in History
Bloomberg, Sep 11
A measure of optimism among U.S. small-business owners rose to a record and exceeded projections as companies planned the most capital spending since 2007 and hiring intentions hit an all-time high, a National Federation of Independent Business survey showed Tuesday.
Technology & Innovation
Goldman Sachs: digital disruptors will compress brokerage margins
FreightWaves, Sep 12
Last week, a Goldman Sachs equity research team led by Matthew Reustle, CFA, released a report titled “Commoditizing Logistics: Assessing ‘Disruptive’ Links in the Supply Chain.” The report was apparently intended to answer investor questions about threats to large logistics incumbents’ margins and market share.
Heavy Trucks Lead Fuel Economy and Technology Research
Trucks.com, Sep 12
After years of dedicating research money to help passenger cars run farther on a gallon of gasoline, the federal government and other groups are targeting commercial vehicles. “We have made a conscious decision to increase our focus on the medium- and heavy-duty truck market,” Michael Berube, director of the U.S. Department of Energy Vehicle Technologies Office, told Trucks.com.
Internet of Things Arrives in Intermodal
Transport Topics, Sep 5
The domestic intermodal industry has long been plagued by an inability to accurately track and report, in a timely manner, the status of a container in transit. Historically, that’s put intermodal at a disadvantage compared with over-the-road trucking, in which GPS-enabled cargo and equipment-tracking sensors have been widely adopted for over-the-road trailers of all types.
Blockchain in Trucking: Between Hype and Reality
HDT Truckinginfo, Sep 11
Blockchain technology has generated quite a bit of press in recent years, primarily because the underlying technology enables cryptocurrencies. Applying that technology to trucking may hold promise in the future, but at the present, its application in the industry is somewhere between “hype and reality,” according to Chris Burruss, president of the Blockchain in Transport Alliance.
Related: Book: logistics firms must look past blockchain hype to see its potential (DC Velocity)
Your UPS deliveries may soon arrive in electric trucks
Fast Company, Sep 11
A new UPS truck now rolling around the streets of London looks like an ordinary delivery vehicle. But at night, the truck plugs into a new smart grid at the company’s hub in the center of the city, where it pulls in enough charge to drive up to 150 miles the next day.
Tech offers salve to Mexican truck capacity and security pain
JOC, Sep 10
Smart Trak Technologies, a British Columbia-based company, in recent weeks began offering a security strap that wraps around the locking rods of a container and is fitted with sensors and a fiber optic strap. When the strap is broken or cut — in a robbery, for example — the device alerts the shipper or trucker. The two devices are part of the slow but growing embrace of technology in Mexico.
Government, Safety & Labor
2018 Roadcheck Out-of-Service Rate Declines From Last Year
Transport Topics, Sep 12
More than one of every five trucks that received comprehensive Level I inspections during the Commercial Vehicle Safety Alliance’s International Roadcheck this summer were taken out of service, CVSA reported on Sept. 12.
FMCSA Chief Martinez Wins Praise for Approach to Truck Safety
Trucks.com, Sep 11
In six months leading the Federal Motor Carrier Safety Administration, Ray Martinez has won praise across the trucking industry for asking questions instead of making statements. A little humor hasn’t hurt either. “One of the things I’ve found in executive positions is you’ve got to be a good listener. Stop talking for a little bit and let other people talk,” Martinez told Trucks.com. “That will help you run an organization, and it will help you deal with your stakeholders. Don’t tell your stakeholders what they should think.”
White House Recognizes ‘Hardworking’ Truck Drivers
Transport Topics, Sep 10
The White House praised the nation’s approximately 3.5 million truck drivers in a presidential message Sept. 9, continuing the Trump administration’s trucker-friendly message. “Our nation applauds the dedication of America’s truck drivers, and we thank them for the hard work they do every day,” the statement read in recognition of National Truck Driver Appreciation Week.
Survey: Driver Compensation Is Up, but Tell Us: Is It Making a Difference?
Transport Topics, Sep 10
After many years of stagnant pay, truck driver compensation is rising substantially. Dry van truckload drivers earned on average $53,000 in 2017, up from $46,000 in 2013, according to data from American Trucking Associations. That’s a jump of 15% in four years, with most of the increase coming in the last year, as freight hauling capacity tightened and motor carriers have raised pay rates to attract and retain drivers.
Supplement Freight Data Sources
- August Cass Freight Index
- July 2018 Freight Transportation Services Index (TSI) – Sept 13th
- DAT Trendlines™
- Cass Truckload Linehaul Index™ –
- Cass Intermodal Price Index™
Links to Top Industry News Outlets: