Trailer orders saw nominal improvement from November to December, according to ACT Research. At 24,300 units, preliminary data indicated it was lower compared to last December, a decrease of nearly 58% year-over-year. As it was during the peak order season, factoring in a seasonal adjustment, December’s data drops to 17,200 units. However, it’s still 10% higher than November. December’s preliminary net orders aligned with expectations, said Jennifer McNealy, director commercial vehicle market research and publications at ACT Research. This comes as fleets have noted weak profitability and trailer manufacturers that have shared “orders are coming, but at a slower pace than they have the last few years.” "This month’s results continue to support our thesis that when fleets don’t make money, their ability and/or willingness to purchase equipment is muted," McNealy said. "That said, the lower orders don’t indicate a catastrophic year in the offing either, simply the slowest December we’ve seen since before the pandemic began.” She noted that other indicators that ACT Research is looking into include cancellations, which fluctuated above comfortable levels in Decembers, and the backlog-to-build ratio, which in aggregate is weakening, now around five months. “However, some specialty segments have no available build slots until late in 2024 at the earliest, while others are in the three-month range,” she added. Backlog-to-build ratio rise
At the same time, FTR reported that trailer production slowed by 15% month over month in December. It was similarly down 15% year-over-year. Though the build number was the lowest since the beginning of 2021, a drop in production after November is normal, noted FTR. Average monthly build is still healthy at more than 26,600 units. “With orders coming in above production levels, backlogs in December rose somewhat, increasing by more than 3,000 units to more than 143,300 units in total,” said Eric Starks, FTR’s chairman of the board. The fall in production and increase in backlogs resulted in an increase for the backlog-to-build ratio to 7.1 months, he said. Due to lower production levels in December, which is above the historical average before 2020, the ratio is slightly high. “A jump in the ratio is normal around the holidays, and the overall picture is still of an industry that is continuing its move towards a pre-pandemic level of stability," said Starks. Similarly, McNealy noted that total cancellations increased to 1.7% of the backlog from November’s 0.9%, elevated for most segments and much higher for some. "Digging down, several markets were again above 1.0%, including dry vans at 1.3%, flats at 3.5%, medium lowbeds at 1.5%, and dumps at 1.3%. Both tank categories reported a spike in cancellations, both around 7% of the backlog," she added. Recent oil price weakness is a possible factor, she said. https://ift.tt/K8I49lM
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Volvo Trucks North America on Tuesday rolled out its redesigned Volvo VNL, the first update to the company's flagship on-highway long-haul truck since 2017. Volvo Trucks North America President Peter Voorhoeve, calling the debut of his company's next-generation VNL "a quantum leap forward," noted that design sketching on the truck started "with a blank sheet of paper," adding that the resulting retooled aerodynamics and engineering achieve a fuel efficiency improvement of up to 10% over prior generation models. "This is our most innovative, fuel efficient and safest truck ever," he said. "We changed about 90% of it," Director of Product Marketing Johan Agebrand noted of the current-generation VNL to the coming generation. The up to 10% fuel economy uptick is a blend of 7% improvement from aero and 3% from powertrain improvement.
The new VNL will be the platform Volvo uses to usher in all its upcoming technologies, including battery-electric powertrains, fuel cell and renewable fuel and hydrogen internal combustion engines. The first 24-volt electrical infrastructure in the North American trucking industry and active safety features that are introduced in this new generation of Volvo trucks will be the standard for the future commercialization of fully autonomous trucks. Because the electrical system is 24 volts, Agebrand said engineers were able to use smaller and lighter components. The 24-volt system was also needed to support redundant systems and autonomous systems. The all-new Volvo VNL is packaged into four exterior and interior trim levels — Core, Edge, Edge Black and Ultimate — and six cab configurations: VNL 300 Day Cab; VNL 440 42-inch Mid-Roof Sleeper; VNL 640 62-inch Mid-Roof Sleeper; VNL 660 62-inch Full-Height Sleeper; VNL 840 74-inch Mid-Roof Sleeper; and VNL 860 74-inch Full-Height Sleeper. Power and aeroInspired by Volvo's SuperTruck 2 but yet still a "simplistic design," according Volvo's Global Design Director Jonathan Disley, the NextGen VNL features a streamlined and angular, wedge-shaped cab design and a curved and bonded windshield: key factors in achieving up to 10% improvement in fuel efficiency. Additional aerodynamic gains were created from the integration of tighter clearances around turbulent air areas like wheel openings, the bumper and the hood, chassis fairings and promoting a tighter trailer gap. The latest generation D13 engine – available in four horsepower ratings, ranging from 405-500hp and three torque ratings from 1,750-1,950 lb-ft – is equipped with an optimized I-Shift transmission, which features up to 30% faster shift speeds. The Turbo Compounding 13-liter will continue to be the standard engine on the new VNL. Safety and techA variety of new and improved proprietary active and passive safety features are included on the new VNL, including Volvo Active Driver Assist Plus with Pilot Assist, which provides active lane centering. Volvo Active Driver Assist Plus is powered by Volvo Dynamic Steering, which improves maneuvering at all speeds, including more controlled backing, increases stability at all road speeds, and adapts and corrects for crosswinds, highway crowning, soft shoulders, or emergency situations like tire failure. The new pedestrian detection feature alerts the driver when a pedestrian or bicyclist may be in their path or blind spots and will activate frontal automatic emergency braking for objects directly in the path of travel. Passive safety systems offered in the new Volvo VNL include the new windshield and its panoramic view, improving visibility for drivers, bolstering safety and reducing wind noise in the cab. The cab of the new Volvo VNL is designed according to Volvo Trucks’ leading crash test standards and will offer a side-curtain airbag, with options for driver-only or driver and passenger airbags, a North American industry first. Cabs are constructed of high-strength steel to deflect the energy of a crash to reduce the chance of injury. Additionally, Volvo Trucks’ splayed frame rails allow the powertrain to drop down below the cab to protect the driver in the event of a head-on collision. E-Call, an innovative new safety feature, connects the driver to emergency services where cellular connectivity is available and provides precise location details. This occurs automatically in the event of a rollover crash or airbag deployment. A 24-month Volvo Connect subscription, an all-in-one fleet management portal that includes vehicle data insights, diagnostics, remote programming, fuel economy reports, safety reports and location services, comes standard with all new Volvo trucks. With the new Volvo MyTruck app, drivers can see estimated remaining fuel range, DEF levels and coolant levels, as well as receiving notifications about potential issues such as light malfunctions, low washer fluid levels and other important items so they can address them at rest breaks or in their pre-trip inspection. Nicole Portello, Volvo Trucks' senior vice president and chief digital officer, said the MyTruck app also allows drivers to schedule specific days and times to start the climate control to have the cabin climate reach a preferred temperature before arriving to their truck to start the workday. Speaking of the cab...Safety isn't the only thing that's important in a cab design. It has to be comfortable, too, for the people spending upwards of 60 hours per week in the driver's seat. The new VNL features newly introduced or dramatically improved amenities, including an optional folding bunk to allow easy access to the dinette space, a singular multi-functional control panel in the back of the cab, upgraded insulation for climate control and noise reduction, a larger refrigerator and enough power options to support any device. A new, optional air suspension system, GRAS (Global Rear Air Suspension), improves ride quality with dual leveling rods that reduce roll and pitch angles, improve lateral stability and minimize road shocks, maintaining a constant ride height. The GRAS and the Volvo Smart Suspension software work in tandem with Volvo's Dynamic Steering system to provide precise steering control and reduce driver fatigue regardless of load, terrain, road condition and varying engine torque levels. GRAS with Volvo Smart Suspension provides three settings to adjust the suspension for different loading and unloading conditions. The new Volvo VNL also features a new ultra-quiet, proprietary, integrated Volvo Parking Cooler -- a climate-control option that utilizes the onboard 24-volt battery system to power the cab’s HVAC when parked, reducing emissions, engine wear and fuel costs. https://ift.tt/K8I49lM As supply chain stakeholders with a genuine interest in the well-being of the trucking industry, each one of us has a responsibility to raise our voice when something isn’t right. With the onslaught of legislative and regulatory action being considered or implemented, sometimes we wonder if anyone is even listening. When we step back and consider the compounding impact of these rules, there is a point where we have to say enough is enough. That may be right now. On the southern border of the United States, thousands of individuals have been lining up trying to get into this country by any means possible. This is not a new issue and it will likely take some time to resolve the deep-seated issues that surround immigration policy. As a nation, we will continue to debate the balance that takes place between showing empathy for those looking for a better life, increasing the supply of labor, understanding the costs and impacts of unregulated immigration, and maintaining a semblance of law and order. But again, this is not a new issue. For centuries now, people of all nations have flowed to the borders of this country. So, what is it that draws so many people to want to cross the border and begin a life in the United States? I would guess that there are many reasons, but chief among them would likely be opportunity – the opportunity to exercise freedom; the opportunity to work hard and get ahead; the opportunity to own land; the opportunity to own and operate a business; the opportunity to worship and believe what you want to believe. The list goes on. This is the American Dream. For all the criticism aimed at how imperfect or dysfunctional this country is, people from other countries are still desperately trying to get in. The entire concept of the American Dream is important, and I believe that we have an obligation to protect it. A recent rule released by the United States Department of Labor (DOL) appears to potentially limit the opportunities for truck drivers to live out their American Dream. The rule changes the definition of an independent contractor by now looking at six factors: (1) the degree of the alleged employer's right to control the manner in which the work is to be performed; (2) the worker's opportunity for profit or loss depending upon their managerial skill; (3) the worker's investment in equipment or materials required for their task, or their employment of helpers; (4) whether the service rendered requires a special skill; (5) the degree of permanence of the working relationship; and (6) the extent to which the service rendered is an integral part of the alleged employer's business.” As an industry, we are still studying the rule to determine its potential impact. But in any case, the efforts to limit the opportunities for truck drivers to own their own business have been relentless. While this particular rule may not go as far as California’s rule, something tells me that this is not the last step for the DOL. Beginning in California and now at the Federal level, the attacks on our industry are baffling. As you look back at the history of trucking, this is an industry that is critical to the economy of this country. This is an industry that has been a wonderful place for individuals to take some risk, work hard and reap the rewards of that work by owning and operating their own business. Some of the biggest companies on the road today started with a single truck and an owner with a vision. With the escalating influence of environmental regulations, inflationary equipment costs, rising fuel costs, astronomical insurance costs, threats of nuclear verdicts, trailer pool requirements, load tracking technology and other challenges, independent contractors have been struggling to thrive on their own. That is why many of these individuals have found mutually beneficial affiliations with a fleet to be so helpful. They still own their own truck, pay for their own fuel, select their own loads, carry significant risk, and earn meaningfully more than an employee for taking on those risks. This model has provided thousands of drivers their own version of the American Dream for close to five decades. One would think that this significant shift in policy that may have a substantial impact on the nation’s supply chain would have come from Congress through legislation. Sadly, this is not the case. It came through a regulatory agency who just decided that it was time for a change. This is not what America is all about. Rather than constricting access to the American Dream, we need to be enabling it. More opportunity, not less. Now is the time to join us by reaching out to your elected representatives and letting them know that this does not work for our industry. If you have any questions on the recent DOL rule or how to communicate with your local representatives, I encourage you to reach out to TCA Senior Vice President of Safety and Government Affairs, Dave Heller, who can be reached at [email protected]. https://ift.tt/K8I49lM Trucking news and briefs for Tuesday, Jan. 23, 2024: ATRI calls for carrier input on detention timeAs part of a larger study on the impacts of truck driver detention on the trucking industry, the American Transportation Research Institute has issued a call for motor carriers and owner-operators to participate in a new ATRI data collection on the consequences of driver detention in the industry. Driver detention – time spent waiting at shipper or receiver facilities outside of loading/unloading – is a longstanding issue in the trucking industry. Accordingly, ATRI’s Research Advisory Committee (RAC) identified the need for new research to document the widespread negative consequences of driver detention for carriers, truck drivers, shippers and the economy as a whole. The short survey asks carriers to share details on their experiences with detention and how it relates to their operations, as well as their strategies for mitigating detention. Later this year ATRI, will release two additional surveys as part of this research -- one for company drivers and one for shippers/receivers. Motor carriers and owner-operators can complete the survey here. [Related: ATRI identifies detention, diesel tech shortage, more as 2023 top priorities] Two Plains states issue HOS waivers due to weatherCertain truck drivers traveling through Montana and North Dakota can operate with an hours of service waiver temporarily as a result of harsh winter weather. Montana Gov. Greg Gianforte on Jan. 19 signed an executive order waiving parts 395.3 of the federal hours of service regulations (maximum driving time) for motor carriers and drivers hauling residential heating fuels through Feb. 1. Commodities included in the waiver include heating oil, natural gas and propane. Gianforte said “recent historic low temperatures and ongoing conditions have caused an increased short-term demand for propane and heating oil and necessitate the timely delivery of these products.” Additionally, North Dakota Gov. Doug Burgum issued a 30-day waiver from Parts 390-399 of the federal hours of service regulations through Feb. 17. North Dakota’s waiver applies to drivers transporting propane supplies. Paccar recalls 11K Kenworth, Peterbilt trucks over mirror issuePaccar is recalling more than 11,000 Class 5-8 Kenworth and Peterbilt trucks for an issue related to the cab mirrors, according to National Highway Traffic Safety Administration documents. Affected trucks include model year 2022-‘24 Peterbilt 535, 536, 537 and 548 models, and Kenworth T180, T280, T380 and T480 trucks. In the affected units, the glass lock ring on the cab mirror assembly may not be fully seated, allowing the mirror glass to detach. Dealers will inspect the mirror glass lock ring and repair it as necessary, free of charge. Owner notification letters are expected to be mailed March 15. Owners can contact Kenworth customer service at 1-425-828-5888 with recall number 24KWA or Peterbilt customer service at 1-940-591-4220 with recall number 24PBA. NHTSA’s recall number is 24V-017. Landstar breaks ground on new Indiana facilityLandstar System (CCJTop 250, No. 7) announced Friday, Jan. 19 the groundbreaking of its new field operations center in Crawfordsville, Indiana. The center is being built on a 14-acre site west of I-74 in Crawfordsville with Landstar’s nearly 10,000 independent leased owner-operators in mind, the company said.. The new 7,000-square-foot building will include classrooms, a conference room and several convenient amenities for owner-operators leased to a Landstar motor carrier, such as a business center with free Wi-Fi, laundry facilities, showers and a breakroom. “Landstar maintains facilities focused on its leased owner-operators across the United States and in Canada,” said Rocco Davanzo, Landstar Transportation Logistics executive vice president of capacity development. “They serve as domicile locations and designated places for Landstar independent owner-operators to connect and network with each other, and to participate in continuous professional education to keep their businesses running smoothly.” The Crawfordsville location is convenient for Landstar owner-operators headed to or from Indianapolis, the company noted, and it has easy truck access from the main road. Landstar owner-operators who visit the new center also will have access to the facility’s secured parking lot, which has spaces for more than 100 trucks and 70 additional passenger vehicles. Polaris names new VP of Pricing and Market StrategyPolaris Transportation Group, a provider of cross-border transportation and logistics, announced Monday that Lesley Veldstra Killingsworth has been appointed as the company’s Vice President of Pricing and Market Strategy. Previously serving as Director of Traffic and Pricing since 2016, Killingsworth has made a significant impact on Polaris' growth, leveraging her expert insights and industry experience to spearhead their competitive pricing and market strategies. Based out of California, she has been instrumental in forging strong partnerships that have resulted in the company's ongoing market share expansions across Canada and the U.S. Killingsworth has dedicated 18 years to the trucking industry in previous director roles, establishing rate and pricing structures for reputable carriers and 3PL providers. For 12 years, she has served as a dedicated member of the National Motor Freight Traffic Association (NMFTA), upholding their values to "promote, advance and improve the welfare and interests of the motor carrier industry." In 2023, she made history as the first chairwoman to join the NMFTA Board of Directors. In her new role, Killingsworth will continue to guide her team with enthusiasm while placing a heavy focus on relationship-building with Polaris' partners and customers. A determined leader with the drive and expertise for motivating change, she will play a major role in helping the company evolve as a leader in transportation and logistics. https://ift.tt/FCeIO3Y The rules governing the classification of independent truckers are like the weather in the Great Plains: wait a bit, and they'll change. And it's that volatility that is causing some anxiety in the industry. Department of Labor (DOL) rules governing the classification of independent contractors will revert to pre-2021 changes March 11 – rule changes that impact contractors in all careers but have vast implications for owner-operator truck drivers and fleets that use them. The updated Biden administration classification of independent contractors reverts to emphasizing how six economic factors should be "considered" when determining independent contractor (IC) versus employee classification. The DOL calls this a "totality of the circumstance" analysis, so no factor is weighted more heavily than others in determining a worker's status. [Related: Biden again nominates embattled Su for labor boss] In contrast, the Trump-era rules emphasized two core factors in making a classification determination: the nature and degree of control over the work, and the work's opportunity for profit or risk of loss. The DOL said in its final rule that, as a general matter, most employees, labor unions and worker advocacy groups expressed support for the proposal to rescind the Trump-era rule. By contrast, commenters who identified as independent contractors and business entities were generally opposed to the proposal, “criticizing the department’s proposed economic reality test as ambiguous and biased against independent contracting.” Montana Trucking Association President Duane Williams said the subjectivity of the rules can stifle entrepreneurship from ICs who might go on to start their own businesses. "I think these rules have a lot of unintended consequences, such as safety," Williams said. "It's not good. We don't like the new rules." For Jim Burg, owner of Warren, Michigan-based James Burg Trucking Company, being an independent operator helped him build his business, and he views being an owner-operator as a potential stepping stone for others wanting to do the same. Burg started his company in 1984 with one truck as an independent contractor. His company is now a 94-truck operation with a terminal in Michigan City, Indiana. His trucks primarily haul steel for the automotive and manufacturing industries. "I drove over 1.2 million miles during the early years of my company's existence. Being an IC gave me the experience to understand the trucking industry and how to run a business, Burg recalled, "and it allowed me to gain knowledge of both as I set out to establish my own company." Burg said about 20 drivers in his fleet are ICs. Each has the option to work for the company as an employee or purchase their own equipment to lease to the company as independents. Over the years, Burg said five ICs have left the company to start their own trucking companies, something he views as a point of pride. "This is a common progression in the industry and should not be taken away," Burg said. Burg's biggest beef with the new independent contractor model soon to be enacted by the Biden administration is its lack of clarity. "The rules are very vague, making it ripe for litigious abuse," Burg said, sketching a scenario where agreements are in place with contractors, and everyone agrees to do the work, but one disgruntled person is unhappy and goes to an attorney. "And then suddenly there's a class action suit. So the rules, to me, are more of an issue of litigation instead of regulation." The pending rule change is already having a chilling effect on Burg's ability to bring new ICs on board. For instance, Burg has an employee interested in buying his own truck and entering into a leasing arrangement to become an IC. But once the final rules were announced, Burg said the guidelines became much more vague and he felt uncomfortable proceeding. "Now, I am not making any changes," he said, adding that he didn't want the employee to invest in a truck only to find that they couldn't make the new rules work. "I don't want to put myself or him in that position. I'm doing it as much for him as for me." Burg will wait and see how the new rules are unpacked over the months ahead and consult with others before making any changes. His current ICs will continue as usual. "Because they are already invested, if I have to make changes they are in the game already," Burg said. Meanwhile, the 40 truck fleet at Lafayette Logistics in Indiana seems poised to weather the shifting rules without much turbulence. Still, the company keeps an eye on it for potential issues. "I would not say that we are making any big changes," said Operations Manager Dustin Hardebeck, adding the company keeps things simple by clearly defining the carrier-contractor relationship. "They have their own business, a W9, an EIN, and we have drivers run their own plates. They are completely separate other than insurance, and that protects us too," Hardebeck said. Lafayette Logistics currently isn't planning to hire any more ICs, but that isn't because of rule changes. It's trying to grow the company fleet, which currently stands at 40 and specializes in transporting steel and automotive parts. But Hardebeck said that an overall chilling of the IC market would "be a blow to all the workforce." Impact of rule variesNot every motor carrier is equally impacted by changing rules. Smith Transfer, based in Evansville, Indiana, boasts 32 trucks in its fleet and specializes in food hauling and freight within a 500-mile radius. John Dyer, president of Smith Transfer, said that his company doesn't have any ICs in its corps of drivers, so the changing rules has no impact. In other places, the impact of the IC rule depends on how the local trucking industry has evolved. "IC is not much of an issue here as I do not know of any company utilizing that system," said Gareth Sakakida, president and CEO of the Hawaii Transportation Association. The lack of independent contractors owes to the islands' unique trucking culture, which lacks a true OTR component. Sakakida said that some trucking companies in Hawaii have tried the owner-operator system in the past but it hasn't caught on, and he's not aware of anyone in Hawaii doing so now. Even on the mainland, there are places where concern over contractor rules isn't as high. Rick Clasby, executive director of the Utah Trucking Association, said the independent contractor model is not much of a factor there. "I'm not sure why, but there just aren't many of our members that hire independent contractors," Clasby said. FedEx is one exception he named. Because so few are impacted by the rules in the state, Clasby said it has yet to be a topic of much discussion. That isn't the case in Alaska where several large trucking companies use independent contractors. Josh Norum is the president of Sourdough Express, a Fairbanks-based freight and moving company with 100 company drivers. He uses about 30 drivers on a contract basis. The operators act as separate company entities that purchase and own their own trucks. Norum, past president of the Alaska Trucking Association, said the six-point test is too vague and open to interpretation. "The biggest question when I see the definition, and this is where we get hung up, is where their revenue is coming from. For some of our independent drivers, their revenue is 100% from us," Norum said, adding that under their contract, tomorrow the independent drivers could go out the door and work elsewhere. In Alaska, trucking can be seasonal, so drivers may seek work elsewhere when things are slow. Currently, business is bustling as ice roads to the North Slope are open for trucks. Norum echoed Burg's concerns that litigation is the biggest threat because of subjectivity and Norum said the independent contractor rules impact about five Alaska trucking companies. https://ift.tt/FCeIO3Y Forward Air (CCJ Top 250, No. 57) on Monday reached an agreement with Omni Logistics to amend the terms of a merger agreement announced in August relating to their previously announced acquisition. The agreement ends litigation between the parties, which will be dismissed. “We have always believed in the power of this acquisition and are pleased to have found a way forward,” said Tom Schmitt, Chairman, President and Chief Executive Officer of Forward. “In recent days, we have engaged constructively with Omni to set a path forward that ends our legal dispute.” Under the terms of the amended merger agreement, Omni shareholders will receive $20 million in cash, instead of the $150 million initially agreed, and 35%1 of Forward’s pro forma common equity (on a fully-diluted, as-converted basis), as compared to the 37.7% of Forward’s pro forma common equity (on a fully-diluted, as-converted basis) contemplated by the original agreement. Schmitt said the revised agreement enables Forward Air to accelerate its long-term Grow Forward strategy and positions the combined company as the premier provider of choice in high-quality freight transportation. "We believe this highly compelling acquisition will deliver significant long-term shareholder value and we look forward to swiftly closing the transaction so we can begin to capitalize on the many exciting opportunities ahead," he said. Forward and Omni’s agreement resolves previously announced transaction litigation between them. The parties are targeting a transaction closing by the end of the week. https://ift.tt/FCeIO3Y The strength of 2023 truck sales could make 2024 a better year than initially expected, Mack Trucks’ President Jonathan Randall told suppliers Monday at Heavy Duty Aftermarket Dialogue, presented by MEMA and MacKay & Company, in Grapevine, Texas. Kicking off the dialogue event and preceding Heavy Duty Aftermarket Week (HDAW), Randall shared why Mack is optimistic for the year ahead, and also stressed how important OEM supplier partners will be in the future of the trucking industry. Randall said Mack’s data indicates the 2023 Class 8 market was 330,849 units in the United States and Canada, and estimates the 2024 market will be only slightly smaller at 290,000 units. Randall said Mack believes the long-haul market will be the main driver of the downturn, but said other segments such as straight trucks (where Mack has a larger market share) will likely pick up some of that slack. [RELATED: Flat freight market keeps dealers’ expectations low for 2024] In the medium-duty market, Randall said Mack is even expecting an uptick, from 109,500 to 115,000 units in the United States and Canada. When asked by moderator John Blodgett of MacKay & Company as to why Mack’s estimates for both markets are slightly higher than other numbers floated across the industry, Randall referenced how orders are being received. Randall said pre-pandemic, between 30-40% of heavy- and medium-duty truck orders placed by dealers were placed without a customer allocated to the unit. He said the dealers generally knew which customers in their market would be needing trucks that year — even if the customers hadn’t ordered them — and ordered them in advance to have them on site. That’s not the case anymore. Randall said 94% of orders Mack received in the Class 8 market in 2023 were allocated to a fleet when ordered. In the medium-duty space that was 85% percent. In both cases, Randall said their dealers also knew who would need the other trucks they had requested and Mack expects that to continue in 2024 and beyond. “[In 2023], the customers wanted more than we were able to deliver,” he said. “Customers have learned they need to plan further out” regarding their future purchasing needs, he added. [RELATED: MEMA's 'Chasing the Aftermarket' showcases benefits of business intelligence tools] Randall also spoke positively of Mack’s supplier partners and how vital they will be in helping the continued transformation of the trucking sector. And the sector is absolutely transforming, Randall said. Electrification and zero emissions, autonomy and connectivity are revolutionizing how trucks are built, marketed and sold. Randall said when he entered the truck sales world in 1995, the sale was the truck. The unit itself. He said now and moving forward, OEMs and dealers aren’t just selling the unit but all the services and solutions that are required to maximize the value of the asset. “We all love our iron, but iron is only a piece of the equation now,” he said. Randall added Mack suppliers should view the OEM as a “strong business partner that communicates transparently, negotiates based on facts and principles, while collaborating to strengthen relationships and create value for your businesses.” He said committing to that will help the OEM and its entire supplier partner base provide the best possible service experience for customers. https://ift.tt/FCeIO3Y Many carriers are still using antiquated means like spreadsheets to manage their operations while modern options like transportation management systems (TMS) continue to evolve and become more sophisticated. Some trucking companies haven’t grown enough to move beyond the use of spreadsheets, but still, there are a plethora of benefits they’re missing by forgoing a TMS, said Jay Delaney, director of product management for TMS provider Magnus Technologies. The biggest benefit, he said, is the ability to approach load planning in a proactive manner rather than a reactionary stance. Magnus is in the final stages of developing a new tool that aims to solve load planning challenges by using artificial intelligence to give load planners a view into the future to proactively plan freight moves based on market predictions. “I've got a driver that needs work, and I’ve got capacity, and I match them up at the last possible minute. I do that because of all the variability and all the chaos that exists in transportation. It's hard to plan in advance. There's just too much change and variation,” Delaney said. “You don’t have the ability to actually plan even though we call it planning. It's more reactionary. And I think part of that is because we're not really managing the network.” Magnus’s tool, to be released by the end of the first quarter as part of its base TMS package, will give planners a five-day advanced view that will allow them to predict potential problems – like being undersold or oversold – in the market and make adjustments accordingly to mitigate costly occurrences. Magnus’ new tool will also consolidate all the data that gets thrown at planners and digest it into useful bits of information by load that they can act on, rather than wasting time trying to interpret it. In addition to visibility into data surrounding loads and the market, the tool will give planners visibility into their own KPIs so they can understand the impact their decisions have on the company. Planners will be able to see in advance the impact a decision will have on their company. Some of those KPIs include driver satisfaction and decisions they make around deadhead, utilization and shift miles/hours, Delaney said. “We believe the planner has a huge impact on the success and viability of a trucking company. They can actually make or break a company,” he said. “Planners by and large don't know the impacts of the decisions they make, and planners make decisions every single day that affect the viability and profitability of that company.” Delaney said when he looked at the landscape of available TMS, he saw some big opportunities for improvement, using technology to positively impact the planning function. Another TMS that’s taking a proactive approach to planning is GP Transco’s OpenRoad TMS. The trucking company launched its own TMS years ago when it couldn’t find what it was looking for on the market, and has since offered it to other carriers. The TMS includes the OpenRoad Planner feature that allows planners to visualize an entire week in advance for its entire fleet, showing where every truck is going to go, what time it’s going to arrive, what time it needs to leave and all the attached documents. Delaney said this proactive approach is necessary for carriers to compete in the market. “Planning becomes even more critical during times when markets are tight because now you have less ability to afford a poor planning error. If you miss the mark, and your competitors are doing a better job of planning, and they're managing that chaos that's five days out, and you're not, you're at a competitive disadvantage,” he said. “You're going to end up struggling to survive during those times, whereas customers who are using our planning solution and looking five days out and managing that chaos that we know is going to exist … then your operating ratio improves dramatically, and you can weather those storms.” The LTL differenceDelaney said proactive planning as opposed to reactionary planning is the “next big leap” the industry will see in the planning function for transportation companies moving forward. Carrier Logistics Inc. President Ben Wiesen agreed. “I think there's no question that not only the future but the current of the more advanced systems is to try and optimize every aspect of every operation at a trucking company,” Wiesen said. While both are moving toward proactive measures, LTL is a bit different compared to the truckload market. Truckload is always trying to optimize the reload to reduce idle time and empty miles. LTL is trying to optimize their line haul network with a fixed terminal location to arrive at a balanced network, meaning that, in general, the amount of freight they have flowing east to west is in balance with the amount of freight they have going west to east, Wiesen said. “It's impossible to truly always achieve balance,” he said. But CLI is giving insight into where there is imbalance with its Terminal Route Optimization predictive load planning feature for LTL environments. Wiesen said the LTL challenge is figuring out which orders should be delivered by which driver and in what order the driver should make those deliveries to meet all the service commitments. He said it is impossible for any human to determine the optimal solution of how to allocate deliveries by driver when you have 50 drivers and an average of 15 stops per driver. There are so many possible combinations. CLI’s TMS consolidates all of the data from things like bill of lading, the fleet database, customer files, traffic and routes and computes the optimal solution to meet all service commitments in a way that reduces costs. The TMS allows the user to see line-haul projections so they can understand how much line-haul capacity will need to be made available in each lane in order to service the freight on hand. “At the same time, that starts providing insight into where there is imbalance. So if I know early in the day that I'm already projecting to have more line hauls going east to west than I will have going west to east, that tells me I should try to attract freight that's going west to east in order to better achieve balance,” Wiesen said. CLI’s TMS evaluates all the freight that is going to move or is moving through the LTL carrier’s network and provides users insight into what’s going to happen in the next 12 to 18 hours. “They're using it tactically to say, what do I need to plan for in order to move the freight that I have, and they're also using it strategically to say, ‘the day isn't over yet. I can still work with my customer base to try and attract some freight that will fill my backhauls that I'm predicting to have. I don't actually have those backhauls yet until a little later on in the day – 10, 12, 18 hours later – but I know I'm going to have them so I can work with my sales team and with my customers to achieve that balance and better utilize my assets,” he said. https://ift.tt/FCeIO3Y Trucking news and briefs for Monday, Jan. 22, 2024: Fuel drives November improvement in carrier conditionsFTR’s Trucking Conditions Index for November improved to a reading of -1.35 from the previous month’s -6.07. The gain resulted primarily from a sharp drop in fuel prices, FTR said, but all key factors contributing to the index were more favorable for carriers in November. The outlook remains modestly negative through late 2024, however. “Unfortunately for carriers, November’s market conditions likely were the least unfavorable that they will be through at least the first half of this year barring another sustained slide in diesel prices,” Avery Vise, FTR’s vice president of trucking. “However, as we have noted frequently, lower fuel costs are complicated. Falling diesel prices tend to slow exits of very small carriers, which could further depress capacity utilization and deflate any upward pressure on rates.” Vise added that freight demand doesn’t appear to be improving in the near future. “Trucking should see incremental improvement throughout 2024 but not enough to create any real inflection in the market,” he said. Love’s completes rollout of Freightliner ExpressPoint repair serviceDrivers of Freightliner trucks can now utilize a new service at Love’s Travel Stops’ maintenance network with increased support and convenience for light mechanical repairs. Love’s and Daimler Trucks North America on Thursday announced the rollout of Freightliner ExpressPoint at more than 400 Love’s Truck Care and Speedco locations, with additional location openings planned. “We are excited to have Love’s Freightliner ExpressPoint network fully online, less than a year after announcing our partnership with DTNA," said Eric Daniels, vice president of total truck care for Love's. "Love's Truck Care and Speedco technicians have received comprehensive training from their local Freightliner dealer to provide quality customer service, maximizing uptime for the drivers who keep America running." Through Freightliner ExpressPoint, participating Love's locations will provide light mechanical warranty repair work, roadside warranty emergency services and approved field service and recall campaigns for Freightliner trucks. Warranty repair services include HVAC, fuel systems, external engine components, brakes and suspension, among other services. "We show full commitment to our customers’ uptime by expanding select service offerings with more than 400 Love’s Truck Care and Speedco locations to Freightliner customers," said Paul Romanaggi, chief customer experience officer and general manager of service for DTNA. “The strategic partnership with Love’s and our robust Freightliner Service network charts a course that ensures reliability and efficiency to increase customer profitability keeping their trucks running.” Love’s locations work directly with their local Freightliner dealer to provide parts availability, quality repair work, and easy warranty claim filing to help Freightliner customers get back on the road quickly. C.H. Robinson expands carrier scholarship programGlobal logistics provider C.H. Robinson is expanding its support for the truck driving community and the more than 450,000 contract carriers on the company’s platform. The C.H. Robinson Foundation is offering 25 scholarships and, new in 2024, will double its annual individual scholarship award from $2,500 to $5,000 each for a total of $125,000. Applications will be accepted Jan. 18 through Feb. 28. Now in its 12th year, the global Contract Carrier Scholarship is open to employees or dependents of contract carriers that have been a C.H. Robinson carrier for a minimum of one year as of Feb. 28. Scholarships can be used at accredited college institutions across the globe to support tuition for undergraduate and vocational-technical education for the 2024-2025 academic year. Applicants must also:
Since 2013, the C.H. Robinson Foundation has awarded 340 scholarships totaling $850,000. Scholarship recipients are selected based on academic record, demonstrated leadership and participation in school and community activities, work experience, and educational and career goals and objectives. Scholarship America, a neutral third party, manages the award selection process. https://ift.tt/FCeIO3Y Federal Motor Carrier Safety Administration (FMCSA) Administrator Robin Hutcheson has resigned and will leave the department effective Jan. 26, the agency announced Friday. Sue Lawless, FMCSA Executive Director and Chief Safety Officer, will serve as Acting Deputy Administrator and lead the agency. Hutcheson had served administrator since September 2022 – the first full-time administrator in three years. She was appointed deputy administrator in January 2022 and became acting administrator when then-acting administrator Meera Joshi resigned to accept a post in the administration of New York City Mayor Eric Adams. FMCSA's top position has been fraught with turnover dating back to 2019. Ray Martinez stepped down in October that year and the job was then handed to a series of acting administrators before Hutcheson: Jim Mullen, Wiley Deck and Joshi. [Related: Q&A with DOT Secretary Pete Buttigieg and FMCSA Admin Robin Hutcheson] “It has been the most profound honor to serve in the Biden-Harris Administration, and I am grateful to President Biden for appointing me to these roles,” Hutcheson said. “I thank Secretary Buttigieg for his leadership and confidence and recognize the dedicated team of professionals at the Department of Transportation who work hand in hand with industry partners to serve the American people and keep our country moving forward.” Prior being named FMCSA’s Deputy Administrator, Hutcheson served as the Deputy Assistant Secretary for Safety Policy for the U.S. Department of Transportation in the Biden-Harris Administration, leading safety policy for the department and coordinating other efforts like COVID-19 response and recovery. Hutcheson's nomination and tenure had the support of trucking's major stakeholder groups, including the American Trucking Associations (ATA), the Owner-Operator Independent Drivers Association (OOIDA), the Truckload Carriers Association (TCA) and the Commercial Vehicle Safety Alliance (CVSA). "Administrator Hutcheson led FMCSA through a critical time as the pandemic, natural disasters, workforce shortages and supply chain disruptions challenged the freight economy in ways never seen before," ATA President and CEO Chris Spear said. "America’s trucking industry is the heartbeat of this nation, and we depend on partners in government like Administrator Hutcheson who value data and stakeholder input to meet real-world needs and ensure the safe movement of freight across our nation’s highways. We applaud her communication, transparency and commitment to ATA and our members, and we wish her well in her future endeavors.” CVSA Executive Director Collin Mooney via statement provided to CCJ extended his agency's appreciation to the outgoing-administrator "for her dedicated public service of promoting and advancing commercial motor vehicle safety on our roadways. We wish her all the best in her future endeavors and look forward to working with the new incoming leadership at FMCSA." As FMCSA Administrator, Hutcheson focused on the safety of truck and bus drivers to improve safety outcomes and strengthen the supply chain, FMCSA said. During her tenure, FMCSA established the Women of Trucking Advisory Board, the Truck Leasing Task Force and more. The agency also began working toward changes to its Safety Measurement System and its system for determining a motor carrier’s safety fitness, among other things. The agency also restarted its pursuit of mandating speed limiters and automatic emergency braking systems on heavy-duty trucks. https://ift.tt/UbNmi7R |
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April 2023
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