The global supply chain that powers the U.S.'s economy survived an unprecedented storm during the pandemic, and in doing so became the most-talked about story in business media. Everyone from the White House to the FMCSA to Bloomberg's business analysts have weighed in on historic supply chain disruptions that now lay bare the essential role logistics and transportation professionals play in the economy. But what does the post-pandemic "new normal" mean for fleets and shippers? Essentially, it means adapt or die, according to the most recent Council of Supply Chain Management Professional’s (CSCMP) annual State of Logistics Report. “Resiliency, innovation, technology, and close collaboration with shippers have all been essential to weathering the rapidly changing market demands up and down the supply chain," Andy Moses, senior vice president of sales and solutions at Penske Logistics, said in a release presenting the report. "We see this continuing as supply chains reset and adjust to a new normal as consumer preferences and expectations have reshaped the future of the supply chain during the pandemic.” Before diving into the implications of the report on fleets and shippers, here's a quick look at the top line findings:
How the pandemic impacted truckingCSCMP A quick look at this chart shows motor carrier costs slid 0.6% in 2020 compared to 2019. Full truckload carriers dropped 1.6%, less-than-truckload carrier costs dropped 5%, yet costs jumped 1.5% for private and dedicated fleets. The rising tide of e-commerce sent parcel delivery costs up 24.4%. However, driver pay actually climbed in 2020, so the dip in carrier costs owes to a mix of factors unique to the pandemic, according to Don Ake, FTR vice president of freight transportation research told CCJ. "Carriers likely saw lower overall wage costs due to reduced trucking activity," Ake said. "For-hire carriers probably saw a greater cost reduction than did private fleets, as the latter group's wages tend not to be quite as variable, at least on the downside." Ake cited BLS statistics saying average weekly earnings for for-hire trucking rose about 6% during 2020, but that a reduced headcount and reduced miles due to the pandemic probably dropped payroll wage costs about 1%, which tracks with CSCMP's findings. Tim Denoyer, the vice president of ACT Research and a senior analyst there told CCJ that a dip in fuel costs "outweighed the relatively modest increases and insurance costs" as driver pay increases "didn't really start until sometime in Q3." "With both driver pay and fuel costs up significantly, next year’s report will likely look much different," Denoyer said. CSCMP also projects rates will stay near historic highs through the end of 2021. Furthermore, the report speculates that fleets will rapidly modernize in areas they had lagged. "[A 2020] fourth-quarter recovery suggests that continued economic growth will keep rates high through 2021, until new trucks and drivers can increase available capacity," the report reads. "The need to avoid 'touch' processes during the pandemic may have overcome the industry's long-standing resistance to digitization. If so, technology will improve service levels, with advances including online freight booking, which improves efficiency, and electronic logging devices (ELDs), which provide data that is used to curb time-wasting behaviors." But other experts weren't so sold on the impact of tech just yet. "Technology is likely having only a marginal impact because the system is so stressed and supply chains are so disrupted," said Ake. Looking forward, Denoyer said that technology will play an increasing role in mitigating costs, and that it could be as simple as a smartphone app. "Other operating expenses like communications were also down in 2020, according to public carrier data we track," he said. "This suggests some degree of success with the smartphone app-based driver management systems that a lot of fleets and logistics companies have rolled out." Essentially, consumers became more demanding than ever of shippers, and the freight market must now cobble together an innovative response to ensure customer satisfaction while facing a driver shortage, rising fuel prices and tight capacity. According to Denoyer, any tech-savvy response to the overheated freight market must factor in the driver shortage. "[New technology won't] outweigh the effect on costs from the extraordinary driver shortage," he said. "There are currently 20%-30% increases in driver pay in the market, and that’s nearly half of fleets’ expenses. In addition to pay, we think the rise in vaccination rates and end of extraordinary government stimulus will help the shortage to ease and begin to rein in costs. As new drivers start entering the market, the choice of software will be an important one for cost efficiency." Tight labor market impacts freightThe report projected that overall unemployment would continue to drop, but that fears of a truck driver shortage remained well founded. "In 2020, the transportation sector shed about 74,000 jobs. This is compared to a gain of just under 120,000 jobs the prior year," it reads. The report noted the aging truck driver demographic faced an uphill battle against other, more vibrant sectors like warehousing. According to the most recent BLS statistics, in May of 2021 the truck transportation industry employs 45,100 fewer workers than it did in February 2020. "[L]abor markets in the logistics industry will remain tight because these relatively low-paying jobs compete with others that promise better conditions." Strange times in the freight marketThe report stressed that wild cards in the world's economic recovery from COVID-19, as well as natural disasters and trade disputes, have the ability to radically shift segments of the freight market. The report advises logistics professionals to stay flexible and expect the unexpected. "In a normal year, the macroeconomic situation has a simple relationship with logistics. Faster growth increases demand for logistic services, leading to higher prices as capacity catches up. But the 2020 upheaval of supply chains created chaos that placed gigantic demands on logistics. The result was higher prices for logistics services despite a shrinking economy. Some logistics providers cut back on capacity, others waited to add it, and many found their existing capacity ill-matched to demand, with empty trucks and ships, for example, idled far from where they were needed without return loads." Indeed, CCJ's own reporting has identified many of these trends. The trailer market, for example, has seen 2021 order books near full while 2022 order books sit nearly empty and many are not yet open. Semi truck sales have followed a similar pattern as the semiconductor shortage hamstrings production and basic materials like rubber and steel soar in price. Overall, the report recommends getting used to volatile markets. "In 2021, demand stays varied by supplier sector, transportation mode, and geography. Sudden jumps and dips will result from unpredictable, uncontrollable events. Shippers and carriers alike should plan for optionality in the face of instability. Logistics, like the economy as a whole, is in the midst of another wild ride in 2021," the report stated. To access the full report, click here. https://ift.tt/2ytPsnD
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Trucking news and briefs for Wednesday, June 30, 2021: ATA, OOIDA decry new VMT tax law in ConnecticutBeginning in 2023, all vehicles weighing more than 26,000 pounds will be required to pay a vehicle miles traveled tax for every mile driven in Connecticut. The fee will range from 2.5 cents per mile for trucks weighing 26,000-28,000 pounds to 17.5 cents per mile for vehicles weighing more than 80,000 lbs. As expected, the new law is not popular within the trucking industry. In an op-ed for the Greenwich Time, American Trucking Associations President and CEO Chris Spear said the new law “will have devastating consequences for businesses and families across Connecticut.” “It doesn’t require a Ph.D. in economics to understand that when the cost of truck transportation goes up, the price of what’s being hauled does, too,” he said. “Everyday consumers and the working people of Connecticut will feel the sting of [Gov. Ned] Lamont’s truck tax with each purchase of groceries, gasoline, prescription drugs, construction materials, home furnishings, household goods and so on.” Spear added that truck taxes such as this are “difficult to enforce and easy to evade, rewarding bad actors and punishing the good.” Similarly, the Owner-Operator Independent Drivers Association has also lambasted the law. “We are extremely disappointed in the anti-trucking attitude and determination to raid the bank accounts of some of the hardest working people on the planet,” said OOIDA President Todd Spencer. “Big trucks – especially out-of-state trucks – make for an easy target, and unfortunately the governor and elected officials have picked up on that.” The infrastructure required to fairly and accurately implement a VMT will likely be both cumbersome and expensive. ATRI found that replacing the national fuel tax with a VMT tax, which would be assessed on 272 million private vehicles, could result in collection costs of more than $20 billion annually – about 300 times higher than the federal fuel tax. Hardware costs alone (mostly attributable to providing motorists with a GPS-enabled device) could have an initial price tag of $13.6 billion and require ongoing replacement. Telecommunications costs would be approximately $13 billion annually, and account administration would be an additional $4.3 billion each year, ATRI estimated. As far as a truck-only tax, it might not even be legal depending on how those miles are tracked. A driver's ELD can only be used to keep track of hours of service compliance, meaning the state would potentially need to provide whatever device it requires of drivers to calculate their VMT. Cummins acquires 50% stake in Rush’s nat-gas tech businessCummins and Rush Enterprises have signed a Letter of Intent for Cummins to acquire a 50% equity interest in Momentum Fuel Technologies from Rush Enterprises. Terms of the deal were not disclosed, and the proposed transaction is expected to close later this year. The joint venture will produce Cummins-branded natural gas fuel delivery systems for the commercial vehicle market in North America, combining the strengths of Momentum Fuel Technologies’ compressed natural gas fuel delivery systems, Cummins’ powertrain expertise, and the engineering and support infrastructure of both companies. “This collaboration shows Cummins’ continued commitment to natural gas powertrains,” said Srikanth Padmanabhan, president of the Engine Business at Cummins. “This partnership will improve customers service for both CNG and RNG through an improved support network. We are thrilled to expand our network of clean and reliable power solutions.” The collaboration will also offer aftermarket support through Rush Truck Centers dealerships and Cummins distributors, which will be able to service both the engine and the fuel delivery system. Protect your cargo over extended holiday weekendCargo theft recording firm CargoNet is warning truck drivers, fleets and others in the trucking industry about increased cargo theft activity during the July 4 holiday period, which runs from July 1 through July 7. To help supply chain professionals craft strategies to mitigate theft, CargoNet reviewed theft data between July 1 and July 7 for the previous five years. There were a total of 127 theft events reported in this analysis period, or an average of 25 per year. The average stolen shipment was worth $145,699 per event. Activity for the Independence Day weekend in 2020 was at its highest since 2016 and increased by 123% over the previous year. In previous years, household goods and food and beverage items were the most commonly targeted commodities. This would include items like appliances, toys, alcoholic beverages and seafood. The COVID-19 pandemic has caused shortages and price inflation of specific goods, and CargoNet believes the items most affected, such as computer electronics, are the items most at-risk this year. The firm warns specifically that computer electronics coming out of warehouses in California are at particularly high risk, with more than 50 recorded thefts of electronics shipments in the state since September 2020 and 89% more thefts when compared to the year prior. Additionally, CargoNet warns haulers of full truckload theft activity in Ohio, Indiana, Tennessee, North Carolina and Texas due to indications of one or more cargo theft groups operating along major interstates and surveilling warehouses in those states. California, Texas, Florida, and Illinois recorded the most thefts in this analysis period. Our analysts believe these states are also most at-risk this upcoming holiday, but supply chain professionals should increase security across the Midwest and Southeastern United States in response to recent theft activity. Mack gets order for seven LR Electric trucks from NYC sanitation dept.Mack Trucks announced that the New York City Department of Sanitation (DSNY) plans to purchase seven Mack LR Electric refuse models, which will operate in each of the city’s seven boroughs. DSNY took delivery of its first fully electric refuse vehicle, a Mack LR Electric demonstration model, in September 2020, when it began rigorous real-world testing in Brooklyn. Since then, DSNY has been evaluating payload capacity, regenerative braking, overall vehicle performance in their demanding operations, operating range and charging requirements. “The DSNY order for an additional seven Mack LR Electric trucks speaks to the fact that the performance of the current LR Electric demonstrator model collecting in Brooklyn is meeting and even exceeding their expectations,” said Jonathan Randall, Mack Trucks senior vice president of sales and commercial operations. “Mack has long been the number one choice of refuse customers, and we are now well-positioned to be the industry leader in e-mobility as well. The Mack LR Electric is equipped with Mack’s integrated electric powertrain and will help New York City and DSNY achieve its zero-emissions goals.” https://ift.tt/2ytPsnD With more all-electric vehicles hitting the road than ever before, industry experts think it’s a good idea to train technicians sooner rather than later, otherwise fleets risk getting left behind. Some experts also believe that these high-tech, zero-emission workhorses that lean more heavily on firmware updates and laptop interventions than wrenches, can attract more talent, particularly women and others who have traditionally steered clear of internal combustion. From a front row seat in the epicenter of the commercial EV movement in Southern California, Professor John Frala, longtime alt fuels training coordinator at Rio Hondo College in Whittier, is watching the demand for EV technicians take off as more EVs across all vehicle classes roll out to address emissions while mandated deadlines draw near. “This stuff's expanding like crazy right now,” said Frala, a noted expert and lecturer in alt fuel maintenance and repair who has landed contracts with Volvo, Tesla and Rivian to train their EV mechanics. He’s also been talking with Lucid, which expects to roll out its battery-powered Lucid Air sedan later this year. “The way the technology's rolling right now, everybody's afraid they're going to get left behind,” Frala said. Volvo TrucksThe first emissions deadline in California arrives in only two-and-a-half years, Frala pointed out. By 2024, at least 3% of Class 7 and 8 tractors bought in the Golden State will have to be zero emission vehicles (ZEVs). Certain percentages of other commercial vehicles sold there, all the way down to Class 2, will also have to be emissions-free by 2024. By 2045, all new vehicles sold there will have to be ZEVs. [Related: SoCal warehouse emissions rule upsets Disney, others] Fourteen other states plus Washington, D.C., have followed California’s lead and are requiring that 30% of new medium and heavy-duty trucks be emissions free by 2030. Though hydrogen fuel cells are counted among ZEVs, Frala said that all-electric has the advantage of a much larger and faster-growing manufacturing base and supporting infrastructure, namely chargers. As a result, more technicians are needed for both EVs and charging equipment which has caught the attention of the National Institute for Automotive Service Excellence (ASE) in Leesburg, Virginia. “EV training is all the rage,” said Trish Serratore, ASE’s senior vice-president of communications. “With the OEs committing to add EVs to their fleets, there is more and more interest in training to support them.” Ford, which has been making headlines for its growing EV lineup – including, most recently, its fleet-focused F-150 Lightning Pro – also sees a growing demand for EV techs coming at time when the auto industry has been up against a shortage of service personnel. “We do anticipate an increased demand for EV technicians,” said Elizabeth Tarquinto, manager of technical support operations at Ford Customer Service Division. “Given the fact that there is currently a technician shortage, there will definitely be a need for technicians in this space.” National non-profit CALSTART, which works alongside key stakeholders to help develop clean transportation technologies, embraces the growth of EVs and advises fleets to take action now to avoid getting left behind. “There is concern about a shortage of EV techs to keep up with EV sales growth,” said Bill Van Amburg, executive vice president at CALSTART. “Fleets and service centers should be thinking strategically about their EV transition, which would include the servicing needs for the vehicles and the associated fueling infrastructure,” Amburg continued. “A key to coming out on top of major industry transformations like this one is to begin planning early and adjusting your plans often.” Expecting a bigger pool of techs Hero appeal? Maybe. At a pivotal time when government officials, business leaders and consumers have converged to push for ZEVs to reduce health risks and save the planet from climate change, EV and charger techs could be likened to red-caped, laptop-clicking warriors. [Related: Benore Logistics brings electric trucks to the southeast] But there’s more to it than that. Mike Roeth, executive director at the North American Council for Freight Efficiency, said he’s noticed the “cool and technically advanced” factor of EVs enticing interest in maintenance and more. North American Council for Freight Efficiency“We are in the middle of our site visits for Run on Less – Electric and already we are hearing how driving, maintaining, selling, operating electric vehicles, etc., etc., is exciting for all players and is helping businesses attract talent across many disciplines,” Roeth said. “This is because it’s cool and technically advanced,” Roeth continued. “They see electric cars and are really excited about [electric] trucks. I expected this, but not to the higher level we are experiencing. This is quite exciting and I personally see a broader pool of employees all over. Very exciting.” Like Roeth, Jason Gildenmeister, vice president of fixed operations for TEC Equipment in Portland, Oregon, a Volvo Trucks North America dealership group, also sees the high-tech appeal of electric trucks piquing greater interest among would-be techs. “With advancements in technology, I can envision a scenario where trucks get even better at self-diagnosis, and since we will see more swapping of components versus rebuilding of engines, I think EVs actually reduce the barriers to entry for a technician, and potentially expand the available technician talent pool,” Gildenmeister explained. “This would potentially help resolve some of the challenges our industry currently faces due to having a shortage of experienced technicians, as well as the younger generation being more attracted to other professions. Experienced technicians who have traditionally worked on a combustion engine will need to learn the EV side of the house and be able to cross the aisle when needed.” Chris Hough, vice president of maintenance services at Penske Truck Leasing, also sees the high-tech appeal of EVs as being a potential magnet for more talent. “We feel that technically savvy individuals may be drawn to working on electric trucks,” Hough said. “This type of work may appeal to a different group of individuals, some with an electrical background. It can open up another avenue to draw folks into the industry. With both EVs and diesel trucks, there are so many automated and electronic components that can attract a new generation of truck technicians.” Sparking a women's movement “The cool part about this is I'm getting more female involvement because it’s not a greasy, grimy job where they’re lifting heavy stuff,” Frala said. “Now it's all computer based. We can flash firmware while the trucks are parked sleeping.” Penske Truck LeasingOver the past two years, Frala said female enrollment in Rio Hondo’s tech training courses has gone from 4% to 9% of overall students. The uptick in interest helped convince Frala to pursue an all-female EV tech training academy, which he hopes to get started next year. He has the backing of the National Science Foundation. “I've been an educator going on 28 years and I can tell you that when there’s a female in a class, the whole class structure changes,” Frala said. “Girls think about it, then make a decision to do a repair. The guys hack into it and then when they break something they say, ‘Maybe we've got to go do some research.’” [Related: Report: Battery electric not slowing down after transformative 2020] When asked if EVs were attracting more female techs than internal combustion, Roeth didn’t hesitate. “Absolutely. Met one just this week who is thrilled to be engaged with electric trucks,” he said. California-based Motiv Power Systems, which specializes in electrifying work trucks, step vans, shuttles and busses, gave a similar response when asked if more women were expressing interest in EV maintenance and repair. “Absolutely. Women are already interested and working in the EV space,” said Joanna Hamblin, Motiv’s senior marketing manager. “It’s up to companies to create inclusive policies that go beyond talking points and concrete actions such as on-the-job training and support to flexible working hours. Automotive, like so many industry sectors, not only need more women across all levels of the organization, but also more BIPOC (black, Indigenous and people of color).” Though Tarquinto’s not so sure EVs will attract additional female techs, she does see these high-tech workhorses attracting a new kind of gear head. “I think EV tech work may have a greater appeal to a non-traditional technician,” Tarquinto said. “With the technology involved, I see this opening up the door for more tech focused people – versus those who are mechanically inclined. Understanding computers and systems will be critical. Not sure I would expect a difference in gender, other than it may appeal to high-tech females as well as high-tech males." https://ift.tt/2ytPsnD Trucks don’t just jackknife. There is a root cause. From news reports it sounds like trucks were not designed to brake hard when it is raining. To me, this sounds ridiculous. To many people, the combination of rain, a rookie driver and having to brake hard are the root cause of jackknifing tractor trailers. All the aforementioned factors can (and do) contribute to jackknifing. But they are not the root cause. Root cause is the one thing that, if perfect, wouldn’t have allowed the rain and the hard braking to make the vehicle go out of control. In a LinkedIn post, a reader – trying to prove my root cause analysis incorrect – sent me a picture of a major rental and leasing company’s trailer. The picture was of the corner of the trailer where there’s a warning sign that reads, “Tires: 95 PSI minimum." Just one PSI, regardless of load, that’s the root cause of the problem. When someone rents an empty trailer at that pressure, the driver doesn’t stand a chance of avoiding jackknifing under the right circumstances. A professional in the trucking industry with more than 20 years experience couldn’t believe 95 PSI was incorrect except when the trailer was 100% loaded. The PSI for a trailer in a rental fleet should at least express some concern for safety by posting: 95 PSI minimum when fully loaded. 65 PSI maximum when empty. When in-between, take your best guess or consult the tire manufacturer’s load to inflation table. Admittedly my sign is a little wordier, but this could spark a safety discussion and give the driver time to pause and reflect about his safety situation. Maybe the driver would consider staying on side roads at 45 MPH instead of the interstate at 65 when driving on over inflated tires. 18-wheeler load dynamics are different than a car or light truck. “Bob, what you’re saying is the trucking industry needs to change tire air pressure as the load changes?” A quote from a trucker who refused to believe what I was telling him. Tire manufacturers publish load-to-inflation charts for every commercial truck tire. The charts indicate for every change in load, what the change in tire PSI should be. The point of the chart is not to make a trucker’s life harder than it is, but to prevent jackknifing and provide maximum braking on wet or dry pavement. The tire footprint is determined by the load to inflation. There is a perfect tire footprint, and then there is one too small and one too big. A too small footprint is the root cause of jackknifing. But the jackknifing is reported as anything but a tire problem. It’s a raining problem. It’s a driver problem. And it’s a truck with a braking problem. A too big tire footprint, now that’s a tire problem. The tire will soon become a road gator. A big tire footprint at highway speed will have too much friction on the pavement and get hot. The heat from the friction will cause the tire to separate. Someone, somewhere, at sometime, decided that it was a better compromise to have jackknifing trucks than to have road gators. The reason I am very specific by saying “at highway speed” is because if the vehicle was off-road at twenty miles an hour, the frictional heat would not be a problem. This is the big tire problem that must be avoided at all cost by fleet tire managers. But what is the cost of this game of trading road gators for jackknifing trucks? The cost of hiding tire mismanagement should include the cost to society of interstate highways being closed to all traffic for hours, and what is the cost of the lives lost? Road gators are bad because the road gator doesn’t just fly to the side of the road when it leaves the truck. It must be hit several times to move across all lanes of traffic, causing major damage to vehicles and people. The trucking industry has had an excuse for not following tire manufacturers’ recommendations: It’s just too hard. The trucking industry can’t get the drivers to even check to see if the tires are at the wrong PSI, let alone calculate the correct PSI and then adjust the tire pressure accordingly. I get the impression that trucking is an industry that thinks building autonomous trucks is viable, but building autonomous tire inflation and management systems doesn’t make economic sense, or is just too hard. I hope one day the autonomous lobby will read this article and think, "maybe we should have safe tires on our new fancy driverless trucks?" I hope you agree that a jackknifed truck’s root cause is having the wrong tire footprint. Just because it is reported that a car cut off a truck in the rain and the rookie hit the brakes, doesn’t make it so. While we’re at it, consider a tangent issue to the tire footprint. A footprint that is bouncing like a beach ball exacerbates the problem. Some people in the trucking industry got it in their heads that trailer tires don’t need to be balanced. So now the too small footprint is bouncing down the road. The footprint not touching the road has become part of the root cause problem. But I digress, more about zero-out-of-balance wheel ends and worn out shock absorbers in the near future. Bob Rutherford is a 50-year veteran of the trucking industry. Thirty of those years were as a member of the TMC where he earned both the Silver Spark Plug and Recognized Associate awards for his contributions to the industry. He currently is an industry advisor to Auburn University’s Transportation Institute working with student engineers on tomorrow’s solutions. https://ift.tt/2ytPsnD With production disruptions and component availability issues causing trouble throughout trucking's supply chain, vehicle owners are turning over every stone they can find looking for parts to keep their trucks on the road. That's been good news for the salvage market, which over the last few months has started to receive an uptick in sales and customer inquiries of many common (and not so common) used and rebuilt aftermarket parts. At River Valley Truck Parts, President Kyle Bruno says his team noticed an uptick in customer parts requests in January that has only increased in the subsequent months, with the last two being particularly active. Bruno says his business stocks and sells thousands of parts numbers but does most of its business on engine, transmission and body and cab components. He says order requests for those popular components remain steady but have been overshadowed by a sudden and substantial increase for "oddball parts" and components River Valley has never stocked, such as A/C compressors and related parts, low-volume and unique engine components and random non-commercial vehicle parts. "We got a call for a golf cart differential the other day," Bruno says. "I don't know why they would call us, but I guess it just shows how much trouble people are having finding parts." The story is the same at Truck Component Services, a division of TLG Peterbilt, says Dalton Hord, parts manager. "Many OE suppliers are facing long lead times and are unable to tell their customers when the parts will be available, leading customers directly to us," he says. Like River Valley Truck Parts, TCS also has noticed an increase in A/C lines and engine parts, and Holt notes engine and aftertreatment components with electronic sensors seem to be particularly tough for customers to acquire through conventional aftermarket channels. "One particular part is a NOx sensor for a Cummins engine that is currently 10 weeks out," he says. "We recently were able to help one of our fellow stores by producing three of these NOx sensors in one day, getting three trucks back on the road much sooner than expected." Yet not every customer call coming to salvage yards this year has been totally random. Even brake drum and wheel end component demand has increased for some salvage businesses due to extreme availability issues in the conventional aftermarket and reman channels. The parts shortage has left salvage companies struggling as they try to identify components in demand and develop inventory ahead of more customer requests. Bruno says River Valley hasn't committed to adding any new categories yet, but he says he's open to it if customer demand dictates there's a specific line he needs to have. Adds Vander Haag's President John Vander Haag, "We are trying to predict what to focus on, but it seems to be widespread and difficult to identify a specific part type at this time." And, unfortunately, parts availability is a challenge for salvage businesses too. [RELATED: Supply constraints on 2021’s production potential] Bruno says the white-hot used truck market has nearly doubled the cost of some Class 8 models his business likes to acquire and disassemble, forcing the business to be more selective in its sourcing. "Trucks we used to buy for $1,500 to $2,500 are now $4,000 and $5,000," he says. "And it's not like the parts we're getting from them are going up at that same rate." As such, improvisational sourcing is becoming increasingly common throughout the aftermarket as dealers and distributors look for any solution they can find to keep their customers' vehicle running, says ATD Chairman Steve Bassett, president, General Truck Sales. Bassett says one of his locations recently took a component off a brand new truck on its lot to install into the engine of a transient customer who had broken down near his store. Bassett says his parts team exhausted every avenue it had to source the part but ultimately came up empty, necessitating the unorthodox move. "You have to do whatever you can to get the customer back on the road," he says. https://ift.tt/2ytPsnD Trucking news and briefs for Monday, June 28, 2021: $109 billion allocated for roads, bridges in bipartisan infrastructure deal Overall, the Bipartisan Infrastructure Framework would provide $312 billion for transportation projects and another $266 billion for other infrastructure projects, such as water infrastructure, broadband, environmental projects and more. Roads and bridges get the biggest slice of the pie, $109 billion. The framework also provides $11 billion for safety, $7.5 billion for electric vehicle infrastructure and $16 billion for ports and waterways. Other funding is allocated to public transit, passenger and freight rail and airports. The Biden administration said the framework would be financed through "closing the tax gap, redirecting unspent emergency relief funds, targeted corporate user fees, and the macroeconomic impact of infrastructure investment.” The deal will need to pass the House and Senate before returning to Biden’s desk to be signed. Suttles Truck Leasing, LSP Transport recognized by NTTC LSP Transport has 20 years of experience in the chemical transportation industry. The company, which had operated under a different name until 2015, became a wholly owned subsidiary of LiquidPower Specialty Products Inc. (LSPI) and is now a private fleet dedicated to delivering product for LSPI. The company’s safety program is managed by Joe Maple, who serves as LSP’s HSE Transportation Manager, where the safety of drivers, the community, and the environment is a core value. Suttles Truck Leasing, part of the Dana family of companies, was acquired in November 1999. Suttles operates over 20 million miles annually, providing a wide variety of products and services ranging from hazardous commodity hauling to tank wash facilities to equipment leasing. Suttles Truck Leasing’s safety culture is spearheaded by Gene Patten, where a culture of placing safety of their associates, customers, and general public is the number one priority. “Congratulations to the achievements of both Suttles Truck Leasing and LSP Transport,” said NTTC President & CEO Ryan Streblow. “This year’s contest was impressively competitive across all mileage classes; both of these operations should be extremely proud. Almost 75% of carriers in the contest had improved DOT frequencies over the previous year. With Heil’s continued support, we’re pleased to recognize the incredible safety performance of LSP Transport and Suttles Truck Leasing.” https://ift.tt/2ytPsnD
XPO appoints compliance officer to lead logistics spin-off Fitzsimmons has 14 years of senior experience with premier global corporations and law firms. Prior to XPO, she served as chief compliance officer and assistant general counsel for Revlon, Inc., and as senior compliance counsel with the Colgate-Palmolive Company. Earlier, she was an attorney with Paul, Weiss, Rifkind, Wharton & Garrison LLP, and with Williams & Connolly LLP. She holds a juris doctorate degree from Georgetown University Law Center and a bachelor of arts degree from Northwestern University. As previously announced, XPO expects to spin off its logistics business as a separate, publicly traded company in the third quarter of 2021. As the second largest contract logistics provider in the world, GXO will be well-positioned to capitalize on the big three secular tailwinds of e-commerce growth, customer demand for logistics automation and the burgeoning trend toward supply chain outsourcing. The business currently includes approximately 885 logistics locations in 27 countries. Former Coyote executive joins Flock Freight “As I have gotten to know the Flock Freight team, I’ve been blown away by the technology solution they have brought to market, the talent they have assembled across every corner of the organization, and the mission that aligns it all. I know how difficult it is to execute shared truckload at scale – both mathematically and operationally, and Flock Freight has solved it, period,” said Pickett, chief strategy officer at Flock Freight. “The tech not only works, but it works better and better every day. I couldn’t be more fired up about this team and this opportunity to help create a more sustainable and more efficient transportation ecosystem for everyone.” After spending his early career in distribution network design and software development and implementation, Pickett joined the early leadership team at Coyote Logistics soon after the organization’s inception in 2006. Chris was a contributor to Coyote’s legendary rise to $2 billion in global revenue before acquisition by UPS in 2015, as well as its subsequent doubling in size to become the second-largest U.S. truckload (TL) freight broker by 2020. As chief strategy officer over much of that period, Pickett also conceived of and scaled Coyote's Collaborative Transportation Management service offering and developed an original U.S. truckload market forecasting methodology, known to many as the Pickett Curve. This method is widely used in the industry for understanding market dynamics and projecting long-term directional spot and contract pricing behavior. Along the way, he also earned degrees in Industrial Engineering, Logistics, and Business Administration from Virginia Tech, MIT, and Georgia Tech, respectively. TCA names Erb Transport’s Director of Safety & Compliance its Safety Professional of the Year The honor is bestowed upon a trucking industry professional whose actions and achievements have made a profound contribution to enhancing safety on North America’s highways. Boehler, started in the industry as a professional truck driver, and became a driver trainer for Erb Transport in 1997. He later moved into the safety space and has been the Director of Safety & Compliance for Erb since 2008. In this role, he led the committee to design, plan and implement the Erb Pro-Drive driver safety incentive program for reduced idling, speed, and hard-braking incidents. He led the analysis, selection, and implementation of event recorders in all Erb trucks to enhance driver safety and provide a means to coach safe driver behaviors. Additionally, through Boehler’s leadership, Erb has initiated regular monthly driver tailgate sessions, regular online training, and semi-annual driver meetings for broader safety topics. "Tom is a visionary," said Erb’s Vice President of People & Culture David Dietrich. "He is always looking for new ways to improve the safety of our fleet and to better improve the ways that we support our team of drivers,” he shared. “Tom has been instrumental in implementing several things here at Erb to ensure our team’s safety and success.” NationaLease honors top techs Nathan Olson from GATR NationaLease was named the 2021 Top Tech. He was also a Regional Winner in the 2019 competition. First Runner Up was John Norwood from Aim NationaLease, a First Runner Up in 2017, Second Runner Up in 2018, and a Top Three winner in 2020. Brian Peters from Salem NationaLease was named Second Runner Up. He was a Second Runner up in 2014, a Regional Winner in 2015, First Runner up in 2019, and a Regional Winner in 2020 The six additional Regional Winners include Keran Valji, VEL NationaLease; Matt Dove, Aim NationaLease; Jason Johnson, Bentley Truck Services, Inc., a NationaLease Member; David Petenzi, Autow NationaLease; Dave Trader, Aim NationaLease; and Adam Mendoza, Transervice Leasing, a NationaLease Member. https://ift.tt/2ytPsnD Everything is connected. As a technologist,or futurist or engineer or whatever my job is today after nearly 40 years in industry, it never ceases to amaze me how everything seems to be interconnected. I have done research and writing about battery electric vehicles, fuel cell vehicles and other hybrid electric vehicles for some time, but my roots are firmly in the diesel world. All powertrain alternatives care about efficiency. Put simply, dollars-per-mile ($/mi) is a key performance indicator (KPI) that doesn’t care if your current engine runs on diesel, CNG, RNG, electricity, hydrogen, propane, or any of a hundred other permutations of energy. It’s a business metric that everyone wants to improve no matter what drivetrain the vehicle is running. If your competitors can move freight cheaper today than you can, they make more money and have more opportunity to attract customers. This is Business 101. Long-term, fleets can plan technology transitions, but also have to operate in the here and now with the trucks they have today. Don’t get me wrong. I am a strong advocate of improving the environment, improving inclusion, improving social justice, and all that those things entail. But those factors also can be put in perspective of total cost of ownership and ultimately measured in dollars. The true cost of operating a truck has a lot of soft costs that need to be captured but haven’t been because in the past they were thought to be too difficult to capture. The costs are real and they are significant, but we haven’t been able to properly put them on a balance sheet. That is changing. Environmental accounting and social accounting are now starting to enter the calculations. Turns out that using less energy per mile generally also tends to improve the environment and improves the societal impacts of trucking. Which brings me back to the common ground in trucking. More efficient trucking is a shared goal for any powertrain. I’ve spent a career helping move the bar on aerodynamics. My first truck project in 1981 involved making a cab-over quieter. Turns out wind noise is a big issue — welcome to aerodynamics. Over time, I worked on the iconic long-and-tall Peterbilt 379 model and helped morph the product line into a family of new aerodynamic trucks including the Model 385, Model 387, Model 386, Model 579, and the Peterbilt SuperTruck. Writing for NACFE, I’ve co-authored reports on Tractor Aerodynamics, Trailer Aerodynamics, and Determining Efficiency. My 2016 SAE Buckendale Fuel and Freight Efficiency - Past, Present and Future Perspectives is still very relevant. I’ve contributed to the SAE groups working on standards for measuring fuel economy, and I’ve written SAE papers and NACFE papers on platooning — that act of using drafting to improve the fuel economy of a pair or more of vehicles. I’ve also spent a good deal of time on the road observing real-world trucks in operation in the U.S., Canada, Mexico, Europe and Australia. Cooperative Adaptive Cruise Control (CACC) is one of the terms describing technology behind platooning. It’s a proper rebranding since the term “platooning” seems to evoke disagreement among major OEMs as a viable technology, where CACC seems to be universally acceptable. MAN has coined platooning as an electronic drawbar. Semantics are for marketing people. I’m an engineer. It all comes down to aerodynamic drafting and safety. If you look into guidance on “safe following distances” you find that it largely is open to interpretation. One guide indicates you need one second of separation for every 10 feet of vehicle length, plus one additional second if traveling over 40 mph. That translates into eight seconds of separation between you and the vehicle in front. At 70 mph, that’s about 800 feet of separation, or about 11 semi-truck lengths. Another source recommends four seconds, so about 400 feet, or about six truck lengths. Drive around a bit and you’ll see plenty of situations where this is not happening in real-world traffic. Ultimately all the drivers in traffic – trucks and autos alike – are responsible for safely navigating the highways. If no accident occurs, they succeeded. If an accident does occur, then causation is investigated. My point is that drafting is going on every day all around you in moving traffic. I wrote about this back in 2016 in Two-Truck Platooning and in 2015 in an SAE report 2015-01-2897 Aerodynamic Comparison of Tractor-Trailer Platooning and A-Train Configuration where it was clear that a vehicle in front of another vehicle, even at multiple vehicle lengths, can and does positively impact the aerodynamics of the following vehicle. More recently the National Research Council (NRC) has attempted to quantify that affect through wind tunnel and road testing documented in SAE Report 2018-01-1181 Influences on Energy Savings of Heavy Trucks Using Cooperative Adaptive Cruise Control. This report documents extensive joint testing with the NRC Canada, National Renewable Energy Laboratory, University of California-Berkeley, FPInnovations, and the Volvo Group. They were able to quantify in controlled repeatable testing that a truck following an SUV at 65 mph sees a fuel economy improvement of anywhere from 1.5% to 2.6% when the gap between them is between ~140 feet to ~290 feet. An average car is about 15 feet long, so that’s between nine to 19 car lengths that the car in front is creating a benefit for the truck behind. If the vehicle in front is a truck, the benefit is even better – from 4% to 6% at those same gaps. As the gaps shorten, the savings from drafting generally improve. Real-world traffic sees gaps shorter than this regularly, so drafting is occurring all the time vehicles are in moving traffic irrespective of whether or not they intentionally are platooning. And that applies whether or not the vehicles are diesel, battery electric, gasoline, or any other type of powertrain. I’ve estimated from data collected in road experiments that vehicles are in moving traffic conditions 40% to 50% of their time on Interstates. What CACC, electronic draw bar, or just plain platooning bring to the table are added layers of safety through automating decision making for vehicles and taking human reaction times out of braking and maneuvering events. This safety enhancement is also directly relevant to any powertrain choice. It’s not all about fuel economy, but rather reducing accident rates. This also goes to the balance sheet as a win. I would be remiss if I did not also mention that there are additional intelligent ways to improve freight efficiency. As ADAS systems become more prevalent in autos and trucks, the opportunity is there to expand use of long combination vehicles (LCV). In presenting my SAE paper in 2015, I stated that if platooning is good, LCVs are better. This is true across the range of factors from safety, operating costs, capital costs, maintenance costs, driver pay, driver shortage and road wear. Canada and Australia can support this where both have extensive operational histories with these vehicles, as do some U.S. states. The NRC tests included testing a two-truck platoon, each tractor pulling a 53-foot trailer versus a single tractor pulling two 53-foot trailers. They found that the maximum gain measured in fuel economy for moving the two trailers from platooning was ~7% while the net gain from the LCV was 28%. We should use all the tools available in our toolbox to improve efficiency. Expansion of LCV use is one tool that is worth a focus, regardless of powertrain choice. In the end, freight efficiency is about moving more freight with less energy and less cost. Improving aerodynamics are relevant to all powertrain choices, and there are still significant savings possible from low hanging fruit. Rick Mihelic is NACFE’s Director of Emerging Technologies. He has authored for NACFE four Guidance Reports on electric and alternative fuel medium- and heavy-duty trucks and several Confidence Reports on Determining Efficiency, Tractor and Trailer Aerodynamics, Two Truck Platooning, and authored special studies on Regional Haul, Defining Production and Intentional Pairing of tractor trailers. https://ift.tt/2ytPsnD Super VHS, Super BETA, laser disc…these were relatively short-lived video platforms that were replaced quickly by DVDs in the 1990s. While they were a nice improvement over the typical video resolution of 240 horizontal lines, they clearly lacked the sharper resolution, compact size and shelf-life of DVDs. Such is life in the world of fast-evolving technology where even the most compelling-looking iPods can end up in the back of a junk drawer. I have no problem with that. Life goes on and improves, mostly, as technology advances. But what if it’s not an iPod or prized Super BETA that gets relegated to second-class status? What if it’s a Class 8 electric truck? Years ago, lithium batteries hit the market and made a big difference for picture taking (this was long before smartphones took over the camera world.) I was happy to pay a little extra and get those AA dynamos that not only outlasted alkaline batteries in my camera, but also they were lighter. [Related: Fleets see electric trucks as driver retention tool] We’ve also seen that in the auto industry. Professor John Frala, a longtime technician instructor in alt fuel courses at Rio Hondo College in Whittier, California, reminded me recently that the first electric truck went into service in 1896. Lead-acid batteries powered the truck. As time passed, lead-acid remained a popular power source for EVs. Even Ford’s electric Ford Ranger and Chevy’s electric S-10 first used lead-acid when they rolled out in small numbers to fleets in the 1990s. Those mid-size trucks transitioned to more efficient nickel-metal hydride packs, which improved range but ultimately didn’t save the zero-emission pickups from being yanked from production in the early 2000s. It wasn’t too long before lighter and more energy dense lithium-ion batteries began making their way into EVs with the 2008 Tesla Roadster, 2011 Nissan Leaf and 2011 Chevy Volt serving as more memorable examples. Ongoing improvements in lithium-ion tech has led to longer-lasting, safer and more powerful packs. OEMs, which stand to improve their green profiles while cutting production costs with EVs that require far fewer parts than internal combustion, have felt emboldened enough about battery evolution to throw billions into EV and battery manufacturing for Class 1 – 8 commercial vehicles. Fine enough. But when will current li-ion batteries be heading the way of VHS? It’s an important question as better battery technology, namely solid-state, rolls into view. Solid-state on the move Ford, Toyota and Volkswagen have made headlines recently for pursuing the technology. Volkswagen partnered with California-based solid-state innovator QuantumScape and, according to Forbes, could have the new battery tech rolling out this decade. Toyota, no stranger to vehicle electrification, told CCJ’s sister publication, Hard Working Trucks, that they expect to have solid-state rolling out in a vehicle also by the mid 2020s. With their ongoing work in Class 8 electrification with Kenworth, a fuel cell truck supported by solid-state promises more range. [Related: Zero-emission timeline complicates fleet buying decisions] Ford, like other OEMs, has invested heavily in electric vehicles and the batteries that support them. Their solid-state development plans include a partnership with battery innovator Solid Power in Texas. “Solid-state batteries are showing great promise,” Ford announced last month in a press release. “They don’t use the liquid electrolyte found in conventional lithium-ion batteries, can be lighter, with greater energy density and provide more range and lower cost. They also can be made on today’s lithium-ion battery lines, allowing Ford to reuse about 70% of its capital investment in lithium-ion manufacturing lines.” Should fleets wait for solid-state? But does that mean fleets should hold off on acquiring electric trucks and vans until solid-state or some other improved battery technology rolls into view? “No we should not wait,” said Mike Roeth, executive director of the North American Council for Freight Efficiency (NACFE). The topic of EV batteries is a familiar one for Roeth and others at NACFE where they’ve been busy hosting a series of informative webinars on all-electric trucks. (If you haven’t already, sign up for Run on Less Electric Bootcamp #6: Maintenance, Training & Safety which is coming up June 29). “Li-on batteries are good enough across cost, weight, durability and performance to begin this transformation of trucking to zero emissions in many use cases, or often called duty cycles,” Roeth continued. “There are many things to figure out and the industry should not wait for better batteries. Of course as they are developed, new batteries can be introduced into production vehicles where they make sense.” [Related: Zero-emission trucks are coming 'one way or another'] iSeeCars Executive Analyst Karl Brauer, who’s been keeping a close eye on solid-state, raised the valid point of higher upfront costs typical with new technology. “The promise of solid-state batteries, and their advantages, is compelling,” Brauer said. “But we're still early in the development stage and we're likely looking at a few years of validating their capabilities and durability. Plus, the cost of solid-state batteries, at least initially, could be substantially higher than lithium-ion.” As Roeth pointed out, many use cases will be well-suited to li-on batteries. Others, like more demanding regional or even long-haul segments, may want to hold off if they can. Unfortunately, transitioning to solid-state and other improved battery technologies may not come so easily. While most of us have grown accustomed to swapping out AA batteries in small devices, such an approach with EVs can quickly prove complicated and costly. [Related: Fleets prepare for arrival of electric trucks in 2022] With Ford on the fast-track with battery development, including using the world’s first SK Innovation-produced Nickel 9 battery in F-150 Lightning, I reached out to see if Lightning was being developed to accommodate more improved batteries in the future. “Ford Lightning is designed with advanced Li-Ion batteries to meet customer needs,” said Dapo Adewusi, vehicle engineering manager at Ford. “As new battery developments occur, solid-state or otherwise, the product development team will evaluate how and when to best incorporate. We do not have a plan for a solid-state battery swap on Ford Lighting.” But it’s not only the question of upgrading a conventional li-ion powered EV to solid-state that needs to be considered, it’s also charger compatibility. After all, the last thing any fleet wants is to be left behind with costly, obsolete technology as the competition forges ahead with more zero-emission power and bigger loads. https://ift.tt/2ytPsnD Trucking news and briefs for Friday, June 25, 2021: Spot truckload activity flat ahead of July 4 National average spot truckload rates showed little movement up or down, however. Already elevated, spot pricing does not appear to be ramping up seasonally ahead of the July 4 holiday and back-to-school retail shopping. Some trends to watch include:
Spot reefer demand is highly affected by produce distribution. The reefer lane from Atlanta to Miami averaged $3.67 a mile last week, up almost 30 cents over the last four weeks. This coincides with the end of produce season in southern Florida, when outbound rates and freight availability plummet. At the same time, California is now home to the country’s hottest reefer lanes including Ontario to Stockton ($4.26 per mile); Los Angeles to Stockton ($4.28); Fresno to Chicago ($3.51); and Los Angeles to Phoenix ($4.87). Spot freight volumes from these markets are beginning to shift lower, however. New consulting firm offering safety training, mock audits, more Offering personalized, focused safety and compliance consulting, as well as a comprehensive library of on-demand educational and training videos via its Trucksafe Academy, Trucksafe’s partnership-based approach is meant to give fleets of all sizes, from single-truck owner-operators to enterprise carriers, a modern solution to ensure safety of their drivers and fleet — and to avoid expensive and unnecessary DOT audits and citations. “There’s been a gap in DOT training for too long, when it comes to comprehensive regulatory training — as opposed to defensive driving or workforce safety — for safety managers and drivers,” said Brandon Wiseman, founder and president of Trucksafe Consulting. “We’re not out to be another large, faceless consulting corporation. We want to meet carriers where they are and provide them with a tailored and modern solution that works best for their fleet and their personnel to keep them compliant and out of the crosshairs of the DOT and plaintiffs’ bar.” Trucksafe’s mission is to help motor carriers earn and maintain Satisfactory safety ratings, improve CSA scores and SMS rankings, and bolster fleets’ ability to manage and train drivers, dispatchers, and safety managers. By achieving those goals, trucking companies can ensure a good working relationship with shipper and broker customers, avoid being targeted for DOT audits, reduce driver turnover, reduce the likelihood of facing “nuclear” court verdicts, and keep climbing insurance costs in check. In addition to working with fleets to develop realistic and customized safety plans, Trucksafe performs various levels of mock audits to reveal weak spots before the DOT does, aids in reversing erroneous records via DataQs appeals, offers a full catalog of downloadable DOT compliance forms, and educates fleets through its library of both free and paid on-demand videos. These services guide fleets toward building a robust safety program and establishing a fleet-wide culture of safety. Fidelis Freight rebrands to Drive Logistics In 2016, Michael O'Leary began building the company, which focused on the people behind the wheel. As Drive Logistics rolls out new and innovative changes, it has a renewed focus on giving power back to the trucker. With Drive Logistics and the myDrive mobile app, truckers can negotiate fair freight pricing with confidence and instantaneously communicate with their dedicated Capacity Consultants with the touch of a button. "Drive Logistics provides a service that gives our truckers the best pathway to success — a way to make their dreams a reality while focusing on moving freight at premium rates," O'Leary said. Averitt named Top Green Provider The Top Green Providers list recognizes companies that offer products or services that illustrate exemplary environmental stewardship in promoting sustainability. By investing in the industry’s most modern trucks and trailers, in conjunction with optimizing its fleet routing, Averitt has made several measurable achievements that provide a positive impact for its customers, including:
In addition to being recognized as a Top Green Provider, Averitt was recently honored by the Tennessee Trucking Association with the 2020 Clean Diesel Award. https://ift.tt/2ytPsnD |
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April 2023
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