Inspections/violations trends for 2022 show clearly what the COVID-19 pandemic did to state and federal roadside inspection programs, according to a decade-long annual CSA's Data Trail investigation by CCJ's sister publication Overdrive. With very few exceptions, inspection numbers took a nosedive in 2020 as law enforcement departments and truckers themselves sought to limit person-to-person contact. Some states continued that trend in 2021, perhaps to the delight of fleets and drivers seeking further relief from the risk of this one of a myriad potential delays to any haul. Longtime independent Mike "Mustang" Crawford noted he'd been inspected just a single time since the COVID-19 pandemic began, in Arizona, where a minor, and questionable, violation was encoded as a result for his computer equipment and toolboxes' supposed obstruction of his view forward and to the right out of the windows. Aside from that, "I have gone through areas where they’re famous for inspecting you," he said, including "certain places in Texas, the super-coop in Illinois on I-55 north of St. Louis, north of Springfield on the southbound side of I-55," and many others, without a pull-in to speak of. Understand your inspection risk with these national rankings for inspection intensity, highly variable across the United States, as well as where an inspection is most likely to result in a violation in this report from the editors of Overdrive and CCJ in partnership with sister data company RigDig. See how each state stacks up with this comprehensive reportUnderstand your inspection risk with these national rankings for inspection intensity, highly variable across the United States, as well as where an inspection is most likely to result in a violation in this report from the editors of Overdrive and CCJ in partnership with sister data company RigDig. Download the report to access state-by-state insights on: Generally, it seems states across the board "haven’t been inspecting that much," Crawford added. Longtime inspection-intensity leader California, conducting more inspections per lane-mile of National Highway System than any other perennially, showed continued decline in overall inspection numbers. Jaime Coffee, spokesperson for the California Highway Patrol, noted challenges out West "in staffing of both uniformed and nonuniform personnel" over the last few years. That's meant reallocation of otherwise truck-enforcement dedicated and specialized resources "to general law enforcement coverage and periodic deployments for civil protests/unrest," Coffee said. Think trucking has a recruiting problem? That issue is acute for many law enforcement agencies. Captain Josh Barnes, of the Commercial Vehicle Enforcement Division of No. 2 inspection-intensity leader Maryland, put a finer point on that, even urging Overdrive to share the Maryland State Police's "MSP Careers" website. His division alone currently operates with 35 vacancies, 10 sworn and 25 civilian truck inspectors not working full-time on inspections. "There’s a definite loss of manpower in every jurisdiction, though some states are doing a little better than others," said Chris Turner, the Commercial Vehicle Safety Alliance's director of enforcement data and judicial outreach to state/federal enforcement departments and industry. Increased funding for state programs, funneled through the Federal Motor Carrier Safety Administration's big payday via last year's infrastructure legislation, will certainly be available, Turner added. Yet when it comes to truck-inspection-specialized personnel, "when you lose people ... it takes years to build back up. It takes years to school them up," particularly when it comes to vehicle-related inspection levels. In addition to California, indeed most other states have also taken a step back from pre-pandemic inspection levels, though Maryland, close on California's heels in terms of inspection volume per lane-mile, performed more inspections in 2021 than in 2020. Maryland's inspection levels year to year more closely resemble the national trend. It's not just staffing issues that have contributed to the decline in inspections since the pandemic, though. Other factors include, according to Captain Barnes, the simple fact of such a large portion of a formerly commuting general-public workforce now at home, recognizing the work that goes on in the neighborhood on a daily basis, requiring manpower reallocation to an extent. "We had a huge influx of traffic complaints, exhaust complaints," and more, Barnes said. "They hadn't noticed the truck traffic" before home working 24/7. The surge of New Entrants with "Great Resignation" dynamics throughout, too, necessitated a reallocation of significant portions of the force away from roadside and fixed-location inspections and to New Entrant audits. "I'd like to say that was just a surge, but I think it's now a trend," Barnes said, with at least some measure of staying power. Understand your inspection risk with these national rankings for inspection intensity, highly variable across the United States, as well as where an inspection is most likely to result in a violation in this report from the editors of Overdrive and CCJ in partnership with sister data company RigDig. See how each state stacks up with this comprehensive report Understand your inspection risk with these national rankings for inspection intensity, highly variable across the United States, as well as where an inspection is most likely to result in a violation in this report from the editors of Overdrive and CCJ in partnership with sister data company RigDig. Download the report to access state-by-state insights on: Outside of Maryland, national inspection numbers were bolstered in 2021 by a bevy of relatively low-intensity and/or smaller states – Alabama, Connecticut, Delaware, Maine, Michigan, Mississippi, Rhode Island, Wyoming – where 2021 levels were actually above those seen pre-pandemic. Another such state, North Carolina, has boosted its own numbers by almost 12% since 2019, rising up the inspection-intensity rank to a tie with New Mexico for No. 3. That's in part due to efforts through recent years of the state Highway Patrol's Commercial Vehicle Enforcement Section to "train additional personnel to assist with conducting more roadside inspections," said First Sergeant Travis Ingold. "Specifically, our instructors have trained and certified additional sworn and civilian members outside of our section but within our agency to conduct Level 3 Inspections," or the driver-only variant of CVSA's uniform inspection levels. That fact, Ingold added, "would most likely explain the increase in inspections conducted." For what it's worth, Maryland's 2021 decline compared to 2019 coincides with a re-emphasis on comprehensive Level 1 inspections, certainly more time-consuming than the driver-only Level 3. Level 3 inspections represent less of a delay for fleets, too, of course, given they exclude the equipment-related portion of the Level 1 and others. And at least in North Carolina, there's evidence that a great many of those additional inspections are ending with no violation incurred. North Carolina now ranks No. 2. for its high percentage of so-called "clean" inspections – almost 7 in every 10 conducted there in 2021 were violation-free. It hasn't always been that way. As recently as 2016 about half of North Carolina inspection reports concluded with a violation of some kind, that percentage falling quickly in 2017 and 2018 to where it sits today. Ingold noted the state now "emphasizes the importance of conducting an inspection for every Commercial Motor Vehicle stopped, whether it is a random safety inspection or an inspection resulting from a traffic violation." Such a view could well be one adopted more readily nationwide. The trend in clean inspections is up considerably long-term – in the early days following FMCSA's launch of the Compliance, Safety, Accountability program in 2011, for instance, just around 38% of all inspections were violation-free. Over the long term, CSA has ushered in something of a culture shift in law enforcement, said CVSA's Chris Turner, formerly of the Kansas Highway Patrol. He was speaking to law enforcement's recognition of the growing importance of every inspection, and every violation, to the motor carrier community. That's translated to "these days, [law enforcement] folks on the road have a much better acceptance that they may not have done something right." Turner was speaking specifically about the DataQs program and the profusion of carrier challenges to particular violations – a process whose now routine nature has helped bring about the culture shift. "It’s taken a good 10 years," but for most officers today a DataQs request for review of an inspection, violation or crash doesn't feel like "a challenge to their authority anymore," just a routine matter whose importance is recognized. The possibility of error, of course, carries with it negative implications for any trucking business. In Maryland, a real reckoning with this recognition started with COVID itself, which prompted a reassessment of the inspection program at a high level. It's become a part of official quality-assurance policy and procedure, said Captain Barnes. Officers in the truck-enforcement division refer to it as the "pre-DataQs plan," whereby internal staff conduct reviews of inspections/violations with the intent of catching inspector mistakes and correcting them before carriers even have an opportunity to engage the DataQs system. "We do a randomized internal audit every month and correct our own inspections and send them out to carriers," Barnes said. Before the program rolled out post-COVID, the department's DataQs correction rate was on the order of 70% of DataQs reviews acted upon and "overturned" in the carrier's favor. Now, "we're well before the 40% mark, in lower 30s," Barnes added, and if you exclude inspection-related requests where the wrong carrier was assigned, almost always corrected, "we went from 39% overturned to just 8%." The department's now rolling that process out to state and local partner agencies. Yet CVSA's Turner well knows DataQs reviews don't always work seamlessly, though, as issues have continued to bedevil motor carriers in some jurisdictions. Recognition of the importance of every inspection, whether a violation is uncovered or not, too, is by no means universal among state enforcement departments. State-by-state percentages of violation-free inspections range from 14.5% on the low end (Iowa) to more than 70% on the high end (Mississippi). Among high-inspection-intensity states, interestingly, three of the top five – California, New Mexico, North Carolina – also rank in the top 10 for most clean inspections. On the flipside, so do two of the most violation-prone states (Texas and Indiana) shown in the heatmap below charting violations per inspection by state for 2021. (Find full 48-state rankings in all these categories, and more, by downloading the 2022 CSA's Data Trail update at this link.) Among violation categories in this year's CSA's Data Trail analysis, there's evidence, too, more states like North Carolina may be prioritizing driver-only Level 3 inspections. Though high variation in violation priorities between states generally is the rule when it comes to inspections, the national trends for vehicle violations in the big brakes, lights and tires categories are all down. Moving violations -- often the initiation for a traffic stop and accompanied by a Level 3 driver inspection -- were up in both 2020 and 2021, years in which speeding on the nation's roadways has been flagged as a national concern with increasing crash fatality numbers. The trend's well evident in spite of what CVSA's Chris Turner said is, at least anecdotally, a rise in "hesitation for traffic stops out there" among officers, given rising negative viewpoints around law enforcement in segments of the wider public. Bad actors well know "there’s fewer inspections going on," Turner said. Supply-chain issues have put many in a hurry, too, and he guesses some make the calculation it's cheaper to eat the violation and "pay the ticket" in the event of being discovered as a speed scofflaw. "People are just driving more aggressively," Turner added, pointing to both the wider public and working haulers, too. "You can probably see it out there on the roads – crashes are up by any metric you measure. Bad actors are not immune to any of that." The true professionals, though, he knows, the "good drivers, they're still doing it right." Speaking frankly, owner-operator Crawford hopes states, too, smooth out staffing problems in hopes to address a perennial ask of his. He's long attempted to convince Missouri officials to grant him a voluntary inspection to satisfy the requirement for an annual. A knowledgeable officer, he said, is worth every bit of maintenance you might do as a result. "They're much better than most any inspection you can pay for," he said. Where else are violations up? Perhaps you guessed it -- in the hours of service. Stay tuned for the next in this series, as man v. machine comes to the roadside four-plus years into the ELD era. Download the 2022 CSA''s Data Trail update via this link. https://ift.tt/xyNeRXm
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Starting Tuesday, July 26, the Federal Motor Carrier Safety Administration will allow carriers to register to participate in the Safe Driver Apprenticeship Pilot Program, a combined effort with the Department of Labor that acts on the 2021 Bipartisan Infrastructure Law's mandate to explore allowing younger drivers to operate interstate. Register today for "Finding and Keeping Drivers in a Demand-Driven Job Market" webinar Executives from three fleets share the driver recruiting and retention strategies that have propelled their companies to become some of the industry’s best, and how they plan to stay there. This free CCJ webinar is sponsored by Bestpass. The FMCSA proposed such a program as far back as September 2020, and now its time has come. Under the pilot program, carriers can register as apprenticeships with the DOL and recruit under-21 drivers to drive commercial vehicles interstate. The program seeks to provide the trucking industry with access to a younger driver pool, and allows drivers under the age of 21 to operate beyond state lines while keeping safety in focus by requiring specific training actions, supervision, and reporting. While the program seeks to attract a diverse group of participants from small, medium and large trucking companies, it does require carriers to overcome some administrative hurdles, which only carriers in very good standing can overcome. There's also staffing and equipment requirements, so without an experienced driver who is game to do some training on hand, driver-facing cameras and automated transmissions, carriers can't participate. [Related: DRIVE Safe Act becomes law: Here's what motor carriers need to know] Carriers who go through the steps and become a recognized apprenticeship program will gain access to an outperforming group of workers and potentially tax credits as well. And, if a carrier does recruit an apprentice driver to the program, that apprentice driver is – for a variety of reasons, both structural to the law and incidental – more likely to stick with the carrier until the completion of the program, which could be as late as July 2025. How it works: Step one – apply with the FMCSATo initiate the process, simply input the USDOT number and other basic information about the business, including carrier name and a point of contact and address, and answer some questions about fleet size, CDL classes used, driver turnover rate, states of primary operation and proof of insurance (insurance for under-21s discussed in more detail later). In an effort to get the most diverse and realistic dataset from the pilot program, FMCSA is looking for all types of carriers around the country, as well as different pay structures and ranges of annual miles traveled. Safe Driver Apprenticeship Pilot Program requirementsBelow are the carrier requirements to participate in the pilot program. Note that to calculate a carrier's crash rate and driver and vehicle OOS rates, FMCSA uses the 2021 national averages and will use these averages throughout the program until it concludes in July 2025. FMCSA will admit a maximum of 1,000 carriers to the program and a maximum of 3,000 apprentice drivers. Furthermore, FMCSA requires carriers put forward only apprentice drivers with a clean record. The apprentice driver must have a CDL and be in good standing, among other requirements. Experienced drivers accompanying a trainee in the program during supervisory periods must meet the following criteria:
Finally, the carrier must provide vehicles that meet FMCSA's safety standard, which is notably more rigorous than what the Bipartisan Infrastructure Law requires in that it lists in-cab, driver-facing cameras as required. All trucks used within the program must include:
Carriers can install additional safety devices and govern the trucks slower than 65 mph should they choose to, an FMCSA representative said. How to train an under-21 driverCarriers that meet the above requirements and successfully apply to the program must put the apprentice driver through a 120-hour probationary period and a 280-hour probationary period at minimum. During the 120-Hour Probationary Period, the employing motor carrier must ensure the apprentice:
During the 280-Hour Probationary Period, the employing motor carrier must ensure the apprentice:
Also, the apprentice driver can only drive a truck in a standard configuration, so no hauling doubles or triples. The apprentice can't transport passengers, hazardous materials or loads over 80,000 lbs., nor can they gain endorsements for such. The carrier will report safety data on the apprentice driver to FMCSA on a monthly basis, and FMCSA may terminate any apprenticeship or the program itself at any point if it deems that action in the interest of public safety. "As you all know, safety is the FMCSA’s middle name, so if at any time a driver or motor carrier is not operating safely, we do have the opportunity to remove them or the whole program. We have the authority to halt the driver pilot program," said Nikki McDavid, FMCSA's CDL division chief. The FMCSA will grant approved apprentice drivers a letter exempting them from the "K" restriction against interstate travel on their CDL, and all relevant law enforcement will have access to a verifiable list of drivers given such an exemption. The apprentice driver must carry this letter on their person the entire time they're operating interstate. Once carriers get approved to the program, the FMCSA will hold a mandatory webinar on the finer points and more technical aspects of carrying out the apprenticeships. [Related: The feds want trucking apprenticeships: How does an 'Owner-Operator Mentor Academy' sound] Step two, become a registered apprenticeshipMotor carriers can apply to the program before they become a registered apprenticeship with the DOL, but they must complete that process before getting approved. In a public information session held jointly with the FMCSA, DOL touted the benefits of registered apprenticeships: boosting retention and employee loyalty, boosting diversity and inclusion and potentially enabling access to federal funds and tax credits. Additionally, drivers under 21 participating in the program can't drive interstate for any company other than a participating motor carrier, and the DOL boasts a retention rate of 92% for participants in registered apprenticeships broadly. Basically, DOL said, carriers recruiting a young driver to its program ought to be able to count on them staying around as they complete their training. Participants do not officially graduate from the program, they only age out. That is to say that any driver under 21 operating interstate with a letter of exemption from the FMCSA is only able to work at other SDAP participant carriers, and if they leave, their exemption is revoked. Even if the apprentice driver completes both probationary periods, they cannot apply for hazmat or overweight endorsements until they reach 21 and become full interstate-authorized CDL holders. The DOL stressed that registered apprenticeship programs represent a "great, successful model for a number of reasons." "We know it works and we want to increase its uses to grow the economy and provide equitable career pathways and increase diversity, equity and inclusion goals," said Jamie Bennett, of the DOL's Office of Apprenticeship. Bennett pointed out that the average starting wage following DOL apprenticeship is $72,000, that apprentices on average earn $300,000 more than their peers over their lifetimes, and that companies in all industries use apprenticeships. More than 10,000 apprentices currently work in every facet of the trucking industry, she said. Motor carriers with training programs looking to become registered apprenticeships, a requisite step for SADP participation, can access DOL industry intermediaries like Fastport, which will pair the companies with streamlined processes for becoming apprenticeships and access to federal and state funding or tax credits where available. Carriers with questions can email [email protected] or visit nationalapprenticeship.org. Insuring under-21 driversThe FMCSA addressed the challenges in insuring drivers who are under 21 to operate interstate by saying that carriers could apply first, then seek information later. "We know there are companies ready to insure younger drivers," said Nicole Michel, of the FMCSA's Office of Research, "and we encourage you to work with your insurance company and to talk to other insurance companies, but you can apply though us before you have this POI and we can follow up on that later." FMCSA does not offer any funds or credits to cover insurance premiums for younger drivers, and the carrier will bear that expense. https://ift.tt/xyNeRXm Trucking news and briefs for Tuesday, July 26, 2022: Maximum driving HOS suspended for certain Texas haulersThe Federal Motor Carrier Safety Administration’s Western Service Center has extended a suspension of the maximum driving time hours of service regulations for truck drivers providing direct assistance to an ongoing wildfire emergency. As a result of widespread wildfires posing an imminent threat of widespread or severe damage, injury or loss of life or property in multiple Texas counties, Texas Gov. Greg Abbott originally issued a disaster declaration on March 18. On July 21, the state of Texas requested FMCSA issue an extension of the state emergency declaration and grant emergency regulatory relief from 49 CFR § 395.3. The waiver only applies to carriers providing “direct assistance” to wildfire relief, which FMCSA says does not include routine commercial deliveries, including mixed loads with a nominal quantity of qualifying emergency relief added to obtain the benefits of the emergency declaration. Specific commodities covered by the waiver are not mentioned in the declaration. Because emergency conditions have not abated, FMCSA said it is extending the declaration until the end of the emergency, or through Aug. 22, whichever is earlier. If the emergency continues, FMCSA may extend the declaration again. Two indicted in deadly human smuggling attemptA federal grand jury in San Antonio returned an indictment last week against two men charged in the fatal human smuggling operation involving a tractor-trailer incident that occurred on June 27, resulting in the death of 50 adults and three minor children and injuring 10 adults and one minor child. Homero Zamorano Jr., 46, of Pasadena, Texas, and Christian Martinez, 28, of Palestine, Texas, are charged in a federal indictment with one count of conspiracy to transport illegal aliens resulting in death; one count of transportation of illegal aliens resulting in death; one count of conspiracy to transport aliens resulting in serious bodily injury and placing lives in jeopardy; and one count of transportation of illegal aliens resulting in serious bodily injury and placing lives in jeopardy. Upon conviction, the charges for conspiracy to transport and transport resulting in death carry a maximum penalty of life in prison or the death penalty. The Attorney General will decide whether to seek the death penalty at a later time. Should the Attorney General determine that the circumstances of the offense warrant that a sentence of death is justified, the law requires that notice be filed with the court at a reasonable time before trial. The defendants face up to 20 years in prison for the transporting resulting in serious bodily injury charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. On June 27, Homeland Security Investigations (HSI) special agents responded to the scene of a human smuggling event involving a tractor-trailer and 64 individuals suspected of entering the United States illegally. San Antonio Police Department (SAPD) officers advised HSI agents that they arrived at the location of the tractor-trailer in southwest San Antonio after receiving 911 calls from concerned citizens. At the scene, SAPD officers discovered multiple individuals -- some still inside the tractor trailer, some on the ground and in nearby brush, many of them deceased and some of them incapacitated. SAPD officers were led to the location of an individual, later identified as Zamorano, who was observed hiding in the brush after attempting to flee. Zamorano, who was the driver of the truck, was detained by SAPD officers. A search warrant was executed on a cell phone belonging to Zamorano. Through investigation, it was discovered that communications occurred between Zamorano and Martinez concerning the smuggling event. ATRI wants to hear from truckers on driver-facing camerasThe American Transportation Research Institute has launched a short survey to better understand truck driver perspectives and issues with driver-facing cameras. ATRI’s driver-facing camera research was a top research priority of its Research Advisory Committee in 2021. Previous Federal Motor Carrier Safety Administration-sponsored research conducted by ATRI documented that truck drivers have very positive opinions about road-facing cameras, but numerous driver concerns were raised about driver-facing cameras. ATRI’s driver-facing camera survey is designed to better understand the specific issues and concerns truck drivers have, and to determine what, if any, strategies might address those concerns. The OOIDA Foundation participated in both the prioritization of the research, as well as in the survey design. The second component of ATRI’s research will focus on how driver-facing camera video feeds could be used by defense attorneys to reduce unfavorable litigation outcomes against truck drivers and motor carriers. The survey is available online here. Penske opens new facility in OhioPenske Truck Leasing recently opened a new, state-of-the-art facility in Monroe, Ohio. Located at 100 Clark Boulevard, the new facility expands Penske’s capability to support the market and allows increased aid to the large territory between its Sharonville and Dayton sites in the same state. At this location, Penske offers consumer and commercial truck rental, full-service truck leasing and contract truck fleet maintenance. It is also outfitted with the company's proprietary fully digital and voice-directed preventive maintenance process and Penske digital experience solutions, which help customers leverage Penske technology as well as options related to onboard technology systems (ELDs, telematics, onboard cameras, etc.). The location's 14,520 square feet sit on 5.96 acres. It features three service bays plus an automatic truck wash bay, a two-lane fuel island and in-floor heating. https://ift.tt/xyNeRXm This year has been a hot one for mergers and acquisitions among trucking fleets, particularly among CCJ's Top 250 for-hire carriers. Deals among carriers of all sizes have popped up throughout the year, but there has been a substantial uptick early and mid-year among the country's largest. Fleets and investment groups entered January with checkbooks in hand, and to date 20 Top 250 fleets have struck 18 deals this year. Ringing in the new yearJackson, Tennessee-based Milan Supply Chain Solutions (No. 145) and its subsidiary J&B Services, based in Pontotoc, Mississippi, were acquired and merged to form a new dry van truckload carrier, Ascend. Ascend acquired Greenville, South Carolina-based Dedicated Transport Solutions just a few weeks later. Bison Transport (No. 52) acquired Bangor, Maine-based Hartt Transportation (No. 187). Schneider (No. 8) grew its dedicated operations with the acquisition of Ohio-based truckload carrier Midwest Logistics Systems (No. 103) and its more than 1,000 truck drivers and 900 tractors across 30 central U.S. locations. Brownstown, Michigan-based EHS Trucking Enterprises was acquired by RoadOne IntermodaLogistics (No. 57), a full-service trucking company serving the Great Lakes Region. J.B. Hunt Transport Services (No. 3) acquired Conover, North Carolina-based Zenith Freight Lines, a wholly-owned subsidiary of furniture manufacturer Bassett, for roughly $87 million. Hirschbach Motor Lines (No. 61) in February acquired Sapulpa, Oklahoma-based refrigerated carrier John Christner Trucking (No. 115), creating a refrigerated carrier giant. TA Services, a division of PS Logistics (No. 37) in May acquired Houston, Alabama-based C2 Freight Resources, a high-end brokerage specializing in dry-van, flatbed, temperature-controlled, expedited and LTL services. Going back to December 2021, which would include deals that were in the pipeline at the same time as those closed in January 2022, Ashley Furniture acquired the western division assets of Springfield, Missouri-based Wilson Logistics (No. 100), and Knight-Swift Transportation (No. 4) bought RAC MME Holdings and its subsidiaries, which includes Midwest Motor Express (No. 197) and Midnite Express (collectively MME), for $150 million. Summertime heats upThere have been 10 mergers and acquisitions since the beginning of June among CCJ's Top 250 for-hire carriers. PITT OHIO (No. 48) is acquiring Watertown, N.Y.-based LTL carrier Teal’s Express; Ward Transport and Logistics (No. 140) acquired Chicago-based, Quality Cartage; KLLM Transport Services (No. 45) is acquiring Quest Global; Kenan Advantage Group (No. 19) acquired a Louisiana petrochem company; USA Truck (No. 68) was bought by DB Schenker; Freymiller (No. 147) was acquired by investment groups; Fastfrate acquired Challenger Motor Freight (No. 77); PAM (No. 58) purchased Metropolitan Trucking; Heartland Express (No. 42) is picking up Roaring Spring, Pennsylvania-based Smith Transport (No. 111); and Schneider (No. 8), in its second acquisition of the year, bought deBoer Transportation, a regional and dedicated carrier headquartered in Blenker, Wisconsin. Buying high and selling highFew, if any, of the moves made among CCJ's Top 250 come from a position of weakness, where one carrier swoops in to rescue another on the brink of default. In fact, DB Shenker's acquisition of USA Truck – arguably the most significant deal to date – came on the heels of quarterly revenue that was the best in USA Truck's history. Spencer Tenney, president and CEO of Tenney Group – a company that advises motor carriers through sales and acquisitions – noted carriers "have been, for the most part, performing very well the past couple years, and if they haven’t been spending on equipment or paying dividends then they pile up cash." With build rates for new equipment languishing and prices for used equipment soaring to record levels through the first half of the year, acquisition was a means for motor carriers to onboard more equipment and drivers, although FTR Vice President of Trucking Avery Vise noted that likely wasn't the principle factor in determining buyout targets. "My sense of it is that acquisitions of sizable operations by sizable operations are rarely about raw capacity – obtaining more trucks and drivers. Rather, acquisitions tend to be about filling a strategic need that usually has to do with either lanes/customers served or specialized service offerings," Vise said. "Carriers might want to build lane density or they might want to create or build on a service they view as a competitive differentiation. Or a major regional operation might want to acquire a similar operation in an entirely different region to expand their footprint. I doubt the buyers' objectives in any two deals are precisely the same." Expansion via acquisition also comes fraught with baked-in pricing premiums for equipment and drivers, making post-closing profits problematic. "Truckload is a business where people buy trucking companies and pay more than book, and those transactions don’t work," said Donald Broughton, managing partner and principal at Broughton Capital, LLC. "I can count on one hand the number of transactions where company A bought B and paid more than book and three to five years after people said 'That was a great deal.' "In 1998 – or maybe '99 – Bob Synowicki, who was on the Swift board, was the COO of Werner, and John Steele, who was then and still is CFO of Werner, were meeting with the guys at Wellington in Boston who said 'Fleets are doing all these acquisitions. Why don’t you do acquisitions?' Synowicki said 'We did an acquisition last year, we acquired 800 trucks and I paid book value and all the drivers were trained the right way and the margin is the same as the rest of the fleet,'" Broughton recalled. "Basically, he had grown the fleet by 800 trucks at book and the margins were equivalent. Why would you pay more than that? The portfolio manager got what he was trying to say." Conversely, Broughton noted that Swift paid more than book for M.S. Carriers at $383 million in December 2000. "Then they kept continuing to buy things until the wheels fell off," he said. "It just doesn’t work unless you have companies that are in trouble and you buy at a discount, if you can buy for less than book value. If you pay more than book, you have problems. You have to keep all the drivers, all the business; if you pay more than book and lose the driver, then you go from paying 110 cents on the dollar to paying even more than that because you’re not going to get any cashflow." If equipment remains difficult to obtain and freight rates continue to cool, Tenney said he expects mergers and acquisitions among trucking companies to continue at "relatively high levels for the carriers that are better operators who also have less spot exposure." "Most [truckload carriers] are counter-cyclical," he added, "so in a normal environment, if rates cool, they pull back on capex and pile cash. On the other hand, this time may be different as carriers have been deferring capex and could spend in a down cycle. It largely depends on if the OEMs can meet demand." Other factors that may drive high merger and acquisition activity in the second half of 2022, Tenney said, include "fatigue from the past 24-plus months of dealing with COVID; aging business owners with no successors needing to take chips off the table; the need to offset a variety of increasing expenses; and a wave of new leadership that is expanding the pool of 'first time' industry acquirers." https://ift.tt/xyNeRXm Trucking news and briefs for Monday, July 25, 2022: For-hire trucking saw more capacity, lower volume, rates in JuneThe latest release of ACT’s For-Hire Trucking Index showed freight volume and pricing down, with capacity still on the high side, resulting in a lower supply-demand balance in June. Carter Vieth, Research Associate at ACT Research, said June’s index “shows volumes continuing to contract, as sustained inflation and high fuel prices erode consumer confidence.” He added that consumers are choosing to spend more money on travel rather than goods, which is keeping freight volumes down. “Pricing strength continues to moderate from January’s peak, as volumes fall and more drivers enter the industry,” Vieth noted. “The Omicron roll-off and Russia’s invasion of Ukraine helped hasten the decrease by adding significantly to freight costs via fuel, hurting spot rates, even as consumer spending began reverting to services from goods.” He added, “The supply-demand balance reflects loosening in the trucking market and a late stage in the freight cycle. With improving capacity and slowing freight volumes, the pendulum has finally swung from tight to loose. Recent entrants reliant on spot rates will struggle, and their exit will set up the next tight market.” Regarding driver availability, Vieth said the index’s reading “is the first reading above 50 in two years, the 8th highest reading in the index’s history and well above the 39.1 average in the 4-year history of this index.” Yellow opens new Driving Academy in DetroitYellow Corporation (CCJ Top 250, No. 5) last week opened a new Driving Academy in Detroit, the company’s 21st Driving Academy and its first in Michigan, to train the next generation of truck drivers. Yellow’s Driving Academies are comprehensive, tuition-free training programs that provide students with classroom and behind-the-wheel training while preparing them to pursue their commercial driver’s license (CDL). After receiving a license, students are offered a driving position with additional on-the-job training at Yellow. Students will also learn the operations side of the trucking and logistics business while being paid a competitive hourly wage throughout the program. “Our Driving Academies open the door to an entirely new career for men and women who want to earn a good living with benefits. Training our own drivers is also the best way to tackle the driver shortage in America,” said Tamara Jalving, vice president of safety and talent acquisition at Yellow. “We’re thrilled to own and operate 21 permanent Driving Academies throughout the United States. In the last year, we have opened nine new Academies, with more scheduled to open later this year in other parts of the country.” Each of Yellow’s Driving Academies is certified as a Department of Labor apprenticeship program, which is designed to provide paid on-the-job instruction for workers as they prepare for a career that is in high demand. In addition to the new Driving Academy in Detroit, other Yellow Driving Academies are located in Atlanta/Marietta, Georgia; Charlotte; Chicago; Cincinnati, Cleveland and Columbus, Ohio; Denver; Fort Worth, Texas; Hagerstown, Maryland; Indianapolis; Kansas City; Maybrook, New York; Memphis; Nashville; Pico Rivera, California; Portland; Salt Lake City; South Bend, Indiana; and Tracy, California. Amazon rolling out Rivian electric delivery vehiclesAmazon last week began rolling out custom electric delivery vehicles from Rivian to deliver Amazon packages, with the electric vehicles hitting the road in Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle, and St. Louis, among other cities. This rollout, Amazon said, is the beginning of what is expected to be thousands of Amazon’s custom electric delivery vehicles in more than 100 cities by the end of this year – and 100,000 across the U.S. by 2030. The vehicles are designed from the ground-up with safety, sustainability and comfort in mind, and have been thoroughly tested by drivers across the country. They are the product of Amazon’s partnership with Rivian, which the companies announced in 2019 when Amazon co-founded, and became the first signatory of The Climate Pledge – a commitment to reach net-zero carbon across our operations by 2040. As part of the Pledge, Amazon is creating a more sustainable delivery fleet, and its work with Rivian is a step toward decarbonizing its last mile logistics, as well as accelerating innovation that can help others reach net-zero carbon. With its commitment to have all 100,000 electric delivery vehicles on the road by 2030, Amazon will save millions of metric tons of carbon per year. Amazon has been testing deliveries with Rivian preproduction vehicles since 2021, delivering more than 430,000 packages and accumulating more than 90,000 miles. This significant testing has allowed Rivian to continuously improve the vehicle’s performance, safety and durability in various climates and geographies as well as its state-of-the-art features to ensure driver satisfaction, and overall functionality. Rivian has also completed certifications with the National Highway Traffic Safety Administration, California Air Resources Board, and U.S. Environmental Protection Agency. https://ift.tt/hSzsYao Net trailer orders in the U.S. reached 25,444 units in June, according to data released by ACT Research – 31% higher compared to May and nearly 122% above the year-ago. Order placement remained choppy in June as dry van and bulk tank net orders sequentially increased by double digits over May but reefers and flatbeds saw double-digit declines. "OEMs continue to negotiate with fleets, and as some 2023 order boards have opened, those efforts are quickly moving from staged/planned orders to booked business," said Jennifer McNealy, ACT Research director of CV market research and publications. While some OEMs have opened part of their 2023 build slots, McNealy said discussions indicate that others are holding to their plans to wait a bit longer as manufactures continue to face supply-side challenges, limited material availability and labor problems. "Demand remains strong, despite increased pricing," she said, "and cancelations, although ticking upward, are insignificant, as fleets in queue need the equipment and plan to stay in queue until orders are converted to deliveries. The industry closed June with a 7.6-month backlog-to-build ratio, which commits the industry, on average, into early 2023.” June's final order intake was notably higher than preliminary estimations as the industry enters summer months where numbers traditionally decline. This year, order tabulations are somewhat unique as OEMs can't build trailers fast enough and are limiting how many orders they will accept on a month-to-month basis, said Don Ake, vice president of commercial vehicles at FTR. “The OEMs are holding onto an enormous amount of fleet commitments for 2023," Ake added. "Unstable commodity costs and other variables make quoting prices difficult right now. However, these commitments should begin turning into booked orders beginning in September, and there is the potential for record order volumes in the fourth quarter.” https://ift.tt/hSzsYao As a mechanic years ago I remember having to walk across the shop to borrow tools from my brother. That wasn’t always the case, but as a rookie I was far from having such an enviable collection. Every visit to that giant Snap-On box made me feel like a kid in a candy store. And it wasn’t just the amount of tools; it was how clean and well-organized they were. Pat could quickly size up a job, know what tools he needed and then quickly get those tools to get the job done. I also leaned on other mechanics for tools and advice because it wouldn’t have done me or the shop much good if I had just stayed in my stall and simply talked about my vision for car repair. I needed to work with the tools I had and then lean on others when necessary to get the job done. A recent trip I took to Cummins’ headquarters in Indiana took me back to those days as an eager wrench wrangler and gave me a renewed appreciation for working with those master mechanics years ago. From Cummins’ corporate office to their heritage center, their research and technology division and lastly to their mid-range engine plant, I was amazed by the talent, tools, knowledge and passion they bring to get the job done. And at Cummins, they’re taking on a lot of jobs. In addition to continually improving internal combustion, they’re pursuing all-electric and fuel cell powertrains along with hydrogen production and even wireless charging for trucks, all of which demonstrate a strong willingness to fully master various modes of propulsion as they push on to Destination Zero. Destination Zero is the 40-year path Cummins envisions for fully transitioning from internal combustion to zero-emission powertrains like fuel cell and all-electric. It’s a long journey where Cummins sees both conventional and renewable fuels playing an important part. Other industry players envision a similar future, which makes sense given the state of current powertrain technologies paired with the challenging demands of heavy-duty trucking. The good part is if a diesel fleet wants to cut emissions now, they’ve got drop-in options that don’t require massive investments like all-electric and fuel cell. Fleets can turn to an engine manufacturing expert like Cummins and a biofuel guru like Chevron, Neste, Optimus Technologies and Shell to see what their best options are. Renewable diesel and biodiesel offer improved cetane values and emissions reductions right away. Optimus Technologies enables fleets to run on B100 biodiesel, which offers even greater improvements at the tailpipe. Renewable natural gas, renewable propane and newcomer, renewable gasoline, can all cut carbon as well for much less investment than zero-emission technologies. According to the California Air Resources Board, renewable natural gas is a carbon-negative fuel with the lowest carbon intensity value of any transportation fuel. Fleets, particularly in California where they can cash in on the state’s Low Carbon Fuels credit program, have taken notice. “RNG’s use as a transportation fuel increased 234% over the past five years and offset 3.8 million tons of CO2e in 2021 alone,” Johannes Escudero, founder and CEO of the Coalition for Renewable Natural Gas, told CCJ. Renewable diesel use is also growing. To help meet increased demand, Oregon-based NEXT Renewable Fuels partnered with Shell and BP to build the world’s largest renewable diesel refinery plant just outside of Portland. Once completed, plant production is expected to reach 700 million gallons of renewable diesel annually. An ongoing supply of wood waste in Oregon will be among the renewable materials used to create the fuel at the plant, said Keith Wilson, CEO of Titan Freight, a plant proponent and renewable diesel user in Portland. With the popularity and the production of renewables growing, it’s disappointing to see Mission Possible Partnership’s latest report diminishing the role of biofuels, which they contend are “expected to play a very limited role in truck decarbonization” given what they say is excessive cost and inadequate feedstock availability. Mission Possible is instead cheering for a fast track to all-electric and fuel cell trucks. Better not tell all these major industry players, like Shell, who have been betting big on renewables: “LCF play a vital role in trucking, aviation and shipping,” reads Shell’s statement on its Low Carbon Fuels webpage. “This is because liquid LCF provide a lot of energy for a given amount of fuel. Electricity and hydrogen offer solutions over shorter distances today, but the longer the journey, the more important LCF are.” When it comes to availability, there has certainly been plenty of headlines concerning an ongoing lithium shortage, which has quadrupled the element’s price in the past year, cobalt mined by children in Africa, and power shortages in Texas where Tesla owners have been asked to charge up during off-peak hours. These are cars, mind you, not juice-hungry trucks that will require so much more of the grid. And when more electric trucks and vans hit the road, grid failures brought on by storms, earthquakes and God knows what else become even more of a concern. We lost power for two weeks following Cat 5 Hurricane Michael in Panama City, Fla. We didn't see any EVs on the road during that time. Diesel and natural gas kept the trucks going. In short, all-electric and fuel cell as a toolbox for trucking is a pretty humble sight at this point. It’s definitely got promise, particularly as infrastructure, cobalt substitution and solid-state battery development continues. Second-life use cases for batteries following the powertrain lifecycle and ultimately battery recycling are also improving. Obviously, with roughly 50 hydrogen fueling stations in the U.S. being confined solely to California, there’s a lot of room for growth there. An awful lot. In the meantime, internal combustion, especially when paired with renewable fuels, can further reduce emissions now for a challenging segment of transportation that’s going to take decades and historic investment to fully electrify. https://ift.tt/4tCyXHS I recently submitted comments on the Federal Motor Carrier Safety Administration’s Notice of Intent (NOI) to file an advance notice of supplemental proposed rulemaking on speed limiters countering the FMCSA’s premise that a speed limiter rule is neither necessary nor desired. You can read my comments here. Through its NOI, the regulatory agency seeks answers to questions that suggest it is pursuing a pre-conceived, antiquated 1950s solution to a 2020s' problem. It is clear from the NOI that the FMCSA seeks to apply statically set speed limiters by programming the truck’s electronic engine control unit. That in and of itself suggests that the very agency tasked with regulating the trucking industry knows little about the technology available in today’s trucks. First, I believe that the implementation of a speed limiter final rule will have deleterious effects and will cause more accidents and damage to the economy. In my comments, I proposed several modern, readily available technological solutions to the implementation of speed limiters that will better satisfy the objective of a speed limiter rule while also enhancing safety in a geographically diverse, dynamic environment that make a direct response to the questions posed by the FMCSA’s NOI irrelevant. We need better speed enforcement across the board without creating a safety hazard. The apparent lack of state and local speed enforcement, for whatever reason, is insufficient grounds to force the entire industry to bend to a speed limiter regulation that fails to justify the cost burden placed upon the industry as a whole, especially a one-size-fits-all approach that ignores the vast diversity of the nation’s geography, population and traffic patterns. If speeding is the problem that needs fixing, then speed limiters on trucks alone is a misapplication of law enforcement policy and strategy. As both an industry advocate and million-mile professional driver, I believe the proposed speed limiter rule is secondary to the two actual root causes of truck speeding in the first place. The first root cause is the Motor Carrier Exemption to the Fair Labor Standards Act (FLSA) that exempts trucking companies from paying overtime pay to its interstate drivers while they routinely work 70-plus hours per week. Similar to the speed limiter proposal, it is long past time to update the FLSA to reflect the modern-day reality of the technological gains since its passage by repealing the overtime exemption in its entirety. If Congress acts on the FMCSA’s recommendation (based on highway safety) and the Department of Labor’s recommendation (based on pay plan equality honoring President Roosevelt’s FLSA goal to create “a floor under wages” and “a ceiling over hours”), then Congress can and should curb or eliminate unfavorable trucking labor conditions. With the passage of time that brought technological advancements, the conditions precedent to the 84-year old exemption have all disappeared, making the exemption’s continued existence not only unnecessary, but also a compounding factor in the supply chain bottleneck that contributes to an economic and national security vulnerability. Since the FLSA’s 1938 enactment, the Motor Carrier Exemption has deprived $4.8 trillion in today's dollars from hardworking drivers' earnings, denying each interstate truck driver an annual average of $38,100 – $95 billion combined industry wide in 2022 dollars. Removing the exemption could inject that into the economy at a grassroots level that would broadly boost the economy. While Congress originally passed the FLSA with the aim of improving workers’ purchasing power, the exemption’s unintended consequences are now the very source of the ills that Congress intended the FLSA to cure. The second root cause is the archaic pay-by-mile paradigm where carriers pay their drivers only when the wheels are turning while regulated by hour. This dichotomy presents an intrinsic compromise between safety and earning a paycheck. Without some economic value attributed to drivers’ working but non-driving time, no number of piecemeal regulatory Band-Aids will sufficiently cover the wounds inflicted upon the trucking industry. I propose seeking and implementing solutions that bring professional truck drivers to pay parity among non-executive labor markets with the result of eliminating the financial motivations to speed. I am keenly interested in helping the agency develop a more comprehensive approach to the industry’s many challenges that will benefit the industry, its professional drivers, the public and the country. Unfortunately, the approach taken by FMCSA regarding speed limiters represents a major industry breakdown. Absent a comprehensive regulatory approach, the FMCSA will fail to see the highway for the potholes. Alec Costerus is president of Colorado-based over-the-road long-haul trucking company Aerodyne Transportation, LLC, and is co-founder of Alpha Drivers Testing & Consulting, a consulting firm specializing in optimizing drivetrains for owner-operators and fleets. He is the immediate past-Chairman of the Trucking Solutions Group, a peer-to-peer group of owner-operators who collaborate on trucking business and regulatory matters. He can be reached at [email protected]. https://ift.tt/4tCyXHS Something weird is happening in the economy, and with trucking so often a canary in the economic coal mine, commentators have rushed to predict, or even declare, a freight recession as a precursor to a wider whole-of-economy recession. In early April, predictions of a "trucking bloodbath" were everywhere, as spot van and reefer freight rates fell off all-time highs and diesel prices were on their record-breaking jaunt well past $5/gallon, and eventually to $6. Since then, the S&P 500 and Dow have both tumbled around 10% while core inflation, which even excludes food and fuel, has ballooned a whopping 9% year over year, according to the latest data. All of it carries consumer inflation expectations, and generally poor everyday economic sentiment that can create something of a self-fulfilling prophecy. But despite investor losses and consumer pain, the U.S. isn't in a recession. While, colloquially, people say a recession means two consecutive quarters of negative GDP growth (we'll get some idea of Q2 on July 28), it's technically declared by the National Bureau of Economic Researchers, a private nonprofit that looks at a variety of factors before dropping the dreaded R word. But tell that to a family that just bought groceries and filled up the family midsize crossover for more than $100. Tell it to the owner-operator who just filled up for a grand, is paying too much on a used truck, and is looking at spot loads for south of $2.50/mile just a few months after they might have been moving at $3.50. Spot rates have indeed fallen, but remain fairly high historically. Supply chain issues have indeed snarled availability of everything from DEF and motor oil to parts and diesel itself, but freight volumes remain up. Diesel stands at a towering $5.42/gallon nationally as of July 18, but freight spending has grown, too. The weird state of play in the economy has economists scratching their heads, wondering if a recession is actually coming, how bad it might be if so, and how best to measure it. One metric that's gained some traction lately, and some may hold up as an example of a supposed "trucking bloodbath" claiming its victims, has been DOT authority revocations, tracked by FTR Transportation Intelligence, among others. Far too many in the wider trucking world seem to believe there's a direct correlation between those revocations and bona fide bankruptcies. Yet, a closer look at realities behind that data show that the prophesied "bloodbath" might well be more akin to a reallocation of resources, as nimble small trucking businesses shift approach with the winds of market change. Trucking authority revocations might not mean much at allTo fully appreciate the graph above, which does show an admittedly unprecedented pace of revocations in recent months, first remember how many new businesses acquired their own authority since the start of the COVID-19 pandemic. "Starting back in July of 2020 we started to see an unprecedented surge in the number of new carriers, which continues even now, though it's decelerating," said Avery Vise, VP of Trucking at FTR. "If you look back five years to the pre-pandemic, we typically saw 3,000 new carriers added per month. Since then we’re seeing typically anywhere from 10,000-11,000 for most of last year, with 8,000 this June." [Related: Driver shortage claims miss self-employment explosion] Incredible spot rates, as well as the pandemic itself displacing many company drivers and an outpouring of stimulus checks and PPP loans, combined with the proliferation of technology that allows brokers to manage groups of trucks almost as well as an asset-based carrier, drove hundreds of thousands to start their own trucking businesses, according to Vise. These were drivers acting of their own free will to go into business for themselves. Now, some, and not necessarily the same group, are making the opposite decision, but there's no reason to believe they're not also doing it for their own benefit. Just as the great wave of new trucking authorities in the early pandemic coincided with weak payroll employment numbers in trucking, Vise said we're now seeing that undone as professional drivers who have what it takes to go out as owner-operators simply find career situations that better fit their needs. "We see in the revocations data the impact just starting to show up in payroll employment," said Vise. "When you look at the growth we saw in April and May in trucking employment, those are the second two strongest months ever recorded," with the strongest month ever taking place in 1994 at the conclusion of a Teamster strike. "A lot of those drivers are giving up their authority and now working for larger truckload carriers," Vise added, "either as leased owner-operators or as company drivers, which is understandable with diesel through the roof, and the spot market frequently not getting fuel surcharges. Company drivers don't ever worry about fuel prices, and even leased owner-operators get passed through surcharges," and often enough steep discounts at the pump via volume contracts their fleets negotiate. With some fleets promising as much as $110,000 annual starting pay, "working for larger carriers has become attractive for a lot of these operators," said Vise. [Related: How COVID-19 fast-tracked an explosion in power-only trucking] Donald Broughton, managing director of Broughton Capital, pointed out that revocations alone can have many meanings, plenty of which aren't all that apocalyptic for the industry or wider economy. Broughton pointed out that over the pandemic, spot rates eclipsed contract rates for a record amount of time, 22 months within the reefer category. Now spot rates for the three major categories have crashed well below contract rates, but that's because contract rates "did their part" by rising, Broughton said. Furthermore, Broughton pointed out that spot rates plus fuel have remained mostly flat, with fuel surcharges now becoming the main driver of cost in this market. "When spot was at premium to contract, it incentivized people to do all kinds of things, like getting their own authority," he said. "Are those authorities related to private fleets or company fleets? There’s no detail to the data. You don’t even know if any authorities had a single truck. Maybe they applied for the authority and then never bought the truck, or decided they didn't need to have their own authority so they let it lapse." Importantly, according to Broughton, the spike in revocations of authority "doesn't mean the capacity changed at all." Taking dry van for example, Broughton observes that year-to-date load post volume remains higher than in 2021. While spot pricing has fallen 38.5% from the January 2022 peak, "it is still a healthy 34% above May '19." Contract pricing remains more than 50 cents/mile above the previous 2018 record high, "and poised to go higher," as Broughton wrote for the National Association of Small Trucking Companies' quarterly publication. Broughton attributes the dive in spot rates, at least in part, to how difficult it's been for shippers to maintain freight capacity over the pandemic and their attempt to move to contract deals with more stable pricing. "In each and every contract in which we have been given access to the details, securing capacity was the shipper's primary objective," Broughton wrote for NATSC. "What comes from that is carriers saying, 'OK, we'll give you guaranteed trucks, but you give us guaranteed loads,'" Broughton said, leaving shippers scrambling to occupy their contracted carriers and, ultimately, "it takes loads out" of the spot market. What trucking can teach economistsThere's no shortage of online content where so-called financial experts try to teach drivers the ins and outs of the economy, but as the supply chain has become a (if not the) central issue of today's economy, there's an important lesson to be gained for economists. The entire debate over whether or not the nation has fallen into a recession essentially hinges on the question of whether or not demand has died down. The pandemic and accompanying stimulus checks saw unprecedented demand for durable goods across the country, which is all stuff that needs to be hauled in trailers. Now, economists predict that rising inflation and a shift to consumer spending on services, rather than goods, will hurt manufacturing and transportation. But the latest U.S. retail sales figures narrowly beat expectations. Importantly, they showed spending on hobby items like sporting goods and musical instruments, both durable goods, remain 47% above pre-pandemic levels. What kind of recession have you ever heard of where people are still buying guitars? Rates have dropped, sure, but remain historically high. Demand for goods and freight persists. Professional drivers still have plenty of profitable career options. The one true wildcard in the economy remains fuel prices. In July alone, JP Morgan predicted, in a worst-case scenario, oil could sail to $380 a barrel while Citi predicted a crash to $65. Diesel has already dropped nearly 50 cents off its peak, and could head down further, enhancing profitability for small trucking operations exposed to fuel price volatility -- or making them viable and profitable once again, as the case may be, and lining the pockets of the lucky fueling up on a haul with a fuel surcharge locked in at last week's price. Overdrive's last close look at the fuel situation concluded with a quote from an owner that "the strong will survive." It's an enticing bit of sentiment, because it's self-fulfilling -- those who survive hard times are strong. Those who don't? Not so much. But in today's world, the skill to move freight as a professional, however one does it, represents an in-demand capability to bring to market. No amount of authority revocations, true trucking failures or garden-variety setbacks are likely to derail the career of a truly determined hauler. [Related: Will only the strong survive historic fuel-price highs] https://ift.tt/4tCyXHS Trucking news and briefs for Friday, July 22, 2022: J.B. Hunt names new presidentShelley Simpson has been appointed as president of J.B. Hunt Transport Services (CCJ Top 250, No. 3). The company’s Board of Directors elected Simpson, 50, as company president, effective Aug. 1. Over Simpson’s 28-year career at J.B. Hunt, she has served 15 years in executive leadership roles, most recently as chief commercial officer and executive vice president of people and human resources, in addition to leading International Services and Corporate Marketing. John N. Roberts III, will remain chief executive officer and a member of the J.B. Hunt Board of Directors, a new management structure for the company. “Over her tenure at J.B. Hunt, Shelley has worn multiple hats across our business, bringing a data-driven, experienced-based approach to every area she has led,” said Roberts. “If you look at the most disruptive areas of our company, from new technologies to global commercialization to investments in our people, Shelley’s innovative leadership has always guided us toward positive results.” Simpson will take charge of oversight of all management duties and performance for all company business units, emerging technology, developing services and People and Human Resources. In 2007, Simpson was named president of Integrated Capacity Solutions (ICS), a business unit she helped to create. She assumed sales and marketing executive responsibilities in 2011 as chief marketing officer. She took on additional leadership in 2014 as president of J.B. Hunt’s Truckload business segment. Simpson was named chief commercial officer and president of Highway Services in 2017 and led the strategic direction and launch of J.B. Hunt 360. In 2020, Simpson added responsibilities for people and human resources. “I am grateful for John’s continued leadership and growth mindset,” said Simpson. “As our year-long 60th anniversary comes to a close, I can’t help but reflect on our company’s storied history of innovation. From leading the way as the industry’s first asset-based intermodal service provider to leveraging the benefits of technology for shippers and carriers through J.B. Hunt 360, our people have and will continue to fuel our growth through a cycle of innovation that is intrinsic to our organization.” In addition to these changes, Brad Hicks will continue as president of Highway Services and will take on additional responsibilities as executive vice president of people. Spencer Frazier will assume the role of executive vice president of Sales and Marketing. Yellow joins Army workforce partnership programYellow Corporation, (CCJ Top 250, No. 5) entered into a memorandum of agreement this week with the U.S. Army Partnership for Your Success (PaYS) program, demonstrating the company’s commitment to helping ensure veterans have successful careers upon leaving service. “Veterans bring with them the discipline, training and can-do attitude that we value at Yellow,” said Darren Hawkins, CEO of Yellow. “We see the partnership with PaYS as a win-win opportunity for us and for veterans. Giving veterans a great place to work is the least we can do to thank them for serving their country.” The PaYS Program is a strategic partnership between the U.S. Army and a cross section of corporations, companies and public sector agencies. The program provides America's soldiers with an opportunity to serve their country while they prepare for their future. PaYS partners guarantee soldiers an interview and possible employment after the Army. This unique program is part of the Army's effort to partner with America's business community and reconnect America with its Army. “In the trucking industry, veterans can have a new career in service, as they help ensure essential goods are safely delivered to our communities,” Hawkins added. “Yellow is proud to support our troops with a meaningful career and honor their sacrifices made to preserve our freedom.” Merchant Fleet acquired by Bain Capital, ADIAWork truck and delivery van fleet management company Merchants Fleet announced Thursday that Bain Capital and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) have signed an agreement to acquire Merchants Automotive Group, DBA Merchants Fleet and Merchants Auto. Terms of the deal were not disclosed. It is expected to close in the third quarter of 2022. The members of the Merchants leadership team will remain in their current roles and will be co-investors in the business. Chief Executive Officer Brendan P. Keegan will also assume roles of president & chairperson. Founded in 1962, Merchants is the fourth largest provider of fleet management services with over $2 billion in assets under management and 165,000 managed commercial fleet units across North America. The company has a unique business model focused on forward-thinking technology solutions, innovative fleet services, and the proactive adoption of electric vehicles. Merchants will continue to operate independently, and benefit from additional resources under the new ownership that will help speed new service launches, technology innovation, and expansion into new markets. “When we initially provided growth financing to Merchants in 2020, we had our eye on a longer-term partnership,” said Olof Bergqvist, a managing director at Bain Capital. “As the fleet management industry continues to experience considerable disruption, we are excited to continue to support Brendan and the Merchants team on their path of consistent long-term growth driven by connected vehicles, multi-modal transportation, efficiency requirements and data-driven intelligence.” https://ift.tt/VMrKi5S |
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