Category Archives: Industry News

Strong load-to-truck ratios during the final week of 2016 led to some of the highest spot truckload rates of the year, according to DAT Solutions and its network of load boards.

The number of posted loads outpaced trucks during the week ending Dec. 31, traditionally a slow period for freight. Load availability fell 17% while capacity dropped 29%, however, tighter capacity led to higher load-to-truck ratios. Flatbeds posted the biggest gain, 27%, hitting 26.8 to 1, followed by reefers adding 19% at 11.2 to 1. Vans increased 9% at 4.3 to 1

The price of diesel fuel in the U.S. increased again last week, capping off a rally in fuel prices that began more than a month ago, according to the latest numbers from the Energy Department.

The average price of on-highway diesel fuel jumped 4.6 cents last week, hitting $2.586 per gallon at the pump. As the streak of price increases continues, diesel fuel is now 37.5 cents more expensive than it was in the same week of the previous year.

Prices increased in all major regions of the country with the largest spike hitting the Central Atlantic at 8.9 cents per gallon. The smallest amount of change was a 1.9-cent increase in the Rocky Mountain region.

The price of regular gasoline was also up last week, increasing 6.8 cents to an average of $2.377 per gallon at the pump. Regular gasoline is now nearly 35 cents more expensive than it was in the final week of 2015.

After a year of plenty of ups and downs, motor carriers and freight brokers are bracing for 2017 and wondering what to expect. And how will the new presidency affect the freight industry? Here’s a review of some of the most central trucking industry trends to keep in mind for 2017.

Regulations have been on everybody’s mind over the last few years and 2017 will see a number of new regulations come into effect, while others that have not yet been introduced and accepted may end up not seeing the light of day.

One regulation that has gained attention is the implementation of the Unified Registration System (URS). Its deadline was extended yet again because the government needs additional time to securely migrate all the data. The Federal Motor Carrier Safety

Uber has launched a website for a service called Uber Freight. Little has been revealed about the company’s expansion from ride-hailing, but if the announcements it’s made over the last year are any indicator, chances are good that Uber Freight is meant to prepare the world for autonomous delivery trucks.

Uber acquired a startup called Otto, which planned to bring the first self-driving trucks to market, in August. Since then the company has used its trucks to deliver 50,000 cans of beer and hundreds of Christmas trees in San Francisco.

This new service won’t use those trucks, at least not at the beginning. Instead it will function much like Uber’s existing platform: Some people will sign up to drive items across the country, and others will join so they can send packages without having to sign a contract with established shipping companies. The service will likely bring “surge pricing” to trucking, too.

I’m as guilty as anyone in terms of predicting the demise of the small motor carrier – overlooking, as many in trucking do, that 90% or so of the fleets in this industry operate six or fewer trucks, while 97% or so operate fewer than 20 trucks.

And while there’s been a lot said regarding the reluctance of small carriers to adopt electronic logging devices (ELDs), with many interpreting such “regulatory reluctance” as yet another sign that truck capacity may exit the market next year.

“Even with all the issues associated with the current regulations and additional regulations in the  pipeline and even with the incoming  Trump administration likely to be considerably more trucker-friendly,  the evidence continues to mount that small carriers are significantly  disadvantaged vis-à-vis the larger carriers,” argued John Larkin, managing director and head of transportation capital markets research at Stifel Capital Markets, during a recent conference call.

“Even a delayed, downsized onslaught of less onerous regulations will be challenging for small carriers to cope with – especially if the ‘Beyond Compliance’ initiative gains traction with shippers and brokers,” he added.

Cutting out the middleman by connecting drivers directly to cargo.

As an effort to more strictly limit US truck driver hours of service rattled down a congressional exit ramp last week, two more trucking rules long in the works pulled into the fast lane.

Congress sidelined, perhaps permanently, efforts to make truckers spend two back-to-back 1 a.m.-5-a.m. periods off-duty before starting a new work week under hours of service rules. Coming up the on-ramp are final rules that establish a federal clearinghouse for driver alcohol and drug test results and for the first time set national training standards for new truck drivers.

These aren’t “midnight rules” rushed out before the inauguration of a new president — and the installation of a new transportation secretary — but regulations that have been in the works for more than a decade.

The rules will have a significant impact on truck drivers, and therefore on the companies that employ them and the shippers whose freight they haul. For the first time, commercial driver license applications will have to spend a minimum amount of time behind the wheel to get a CDL, and potential employers will have access, once granted permission, to drug and alcohol test results of prospective employees.

Throughout his campaign, President-elect Donald Trump vowed to invest heavily in the nation’s crumbling infrastructure and reduce or roll back regulations that govern trucking, transportation and other industries.

As he works to fill his remaining Cabinet positions, here are some of the top regulatory and legislative issues the transportation industries would like to see Trump address.

Infrastructure Investment:

Trump listed rebuilding the nation’s infrastructure as a top goal of his presidency. The American Society of Civil Engineers gave U.S. infrastructure a D-plus rating earlier this year.

Trump proposed a $1-trillion long-term infrastructure funding plan to fix the nation’s roads, bridges and ports. Labor groups are supportive of new infrastructure projects, which could put thousands to work in construction jobs and also stimulate economic growth.

Fuel cost increases diminish fleets’ buffer from weak shipper demand

The price of diesel is creeping up, threatening to put new pressure on trucking companies still grappling with a weak freight market.

Fuel is one of the trucking industry’s biggest expenses, with diesel making up anywhere from 30% to 40% of the average fleet’s spending, according to the American Transportation Research Institute, an industry group.

CCJ’s Indicators rounds up the latest reports on trucking business indicators on rates, freight, equipment, the economy and more.

Though the trucking industry will likely see declines in freight and revenue in 2016, this year’s only an outlier when looking at the industry’s long-term trend, says the American Trucking Associations in a new report.