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    Category Archives: Industry News

    Trucking economist projects positive near-term outlook

    The short-term economic outlook is positive, but political risk factors threaten to destabilize economic growth, said Eric Starks, chairman and CEO of FTR, during the economic outlook presentation at the Truckload Carriers Association’s 79th Annual Convention in Nashville, Tenn.

    The Institute for Supply Management (ISM) Manufacturing Index has been in a period of expansion for the last year and is likely to continue to grow.

    “Manufacturing is the bread and butter of transportation,” said Starks. “If we look at ISM Index, right now this information tells us manufacturing is growing and in the near-term is likely to continue to grow.” Starks also cited the Federal Reserve’s Industrial Production Index for Manufacturing showing similar positive momentum after two years of stagnation.

    In the broader economy, payroll employment and the overall job market are improving, adding 238,000 jobs in January and 235,000 in February after three straight months below 165,000 to end 2016.

    “In a 2-percent growth economy, job growth in the 200,000-plus range suggests the economy can continue to be self-sustaining,” said Starks, adding that wages are also increasing. “The numbers are telling us we are near full employment. What we’d like to start seeing in the next 12 months is wage inflation.”

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    Used Truck Market Stabilized in February

    The North American market for used trucks recovered last month from a dip in January, according to Price Digests, a trucking information services company.

    Price Digests’ Price Stability Index, a measure of used truck values and the strength of the resale market in the U.S. and Canada, rose to 99 in February from 95.8 in January. A measure of 99 to 100 represents a stable market.

    Price Digests, which collects data from used truck dealers and vehicle auctions, said the inventory of used

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    As Economy Pushes Trucking Rates Higher, ELD Mandate Could Roil Industry

    A healthy U.S. economy has shipping rates poised to head higher, but an upcoming federal mandate to equip long-haul trucks with electronic logging devices could disrupt the industry and launch trucking prices into an even more rapid ascent.

    Carriers are seeing the leading edge of a freight wave, according to analysts at DAT, an online freight exchange. For the first three months of 2017, load volumes are running 100 percent above the level of the same period a year earlier. And this is before April, when the peak season for freight usually kicks off.

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    Deadline Looms for Trucking Companies to Comply with FDA Sanitary Transportation Rule

    Trucking companies have until April 6 to comply with the training provision of the FDA’s Sanitary Transportation of Human and Animal Food rule, but with less than two weeks before the compliance date, the federal agency has yet to post its digital training course.

    As part of the 2011 Food Safety Modernization Act, or FSMA, carriers responsible for sanitary conditions during food transportation must train drivers to deal with potential food safety problems, as well as teach them basic sanitary practices and the responsibilities for motor carriers dictated by the rule.

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    Trucking companies begging for drivers during shortage

    NEW CASTLE, Pa. (WYTV) – The famous saying by truckers is “you bought it, I brought it.” But those in the industry say there’s a shortage of drivers — a problem that needs to be addressed right away.

    Watching trucks roll through Hubbard, it’s hard to believe there’s a driver shortage. But Zeke Haddle, with R&J Trucking, notices it every day. He could use a dozen drivers to drive between seven terminals around the state.

    “Every company out there is suffering from lack of drivers to get their freight from point A to point B,” Haddle said.

    If nothing changes soon, the American Trucking Association believes there will be more than 900,000 unfilled driving jobs within ten years.

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    Mack highlights fuel-efficient, powerful highway models at 2017 Mid-America Trucking Show

    Mack Trucks will highlight the fuel efficiency benefits of its highway models with four powerful Mack trucks displayed during the 2017 Mid-America Trucking Show March 23-25 in Louisville, Kentucky. Also on display will be Jack Mack, a custom-built one-of-a-kind mega-crew cab named after John “Jack” M. Mack, one of the founders of Mack Trucks.

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    Indicators: Trucking conditions point to ‘better year ahead,’ freight jumped in February

    Trucking conditions point to stronger ‘17, FTR says: Market conditions for carriers, as measured by the monthly Trucking Conditions Index from FTR, remained nearly unchanged in January from December, dipping slightly between the two months. However, FTR COO Jonathan Starks says 2017 is “looking like a better year for the trucking industry,” due to expected capacity constraints prompted by increasing adoption of electronic logging devices ahead of the December 2017 compliance date and industry-wide struggles in finding and keeping drivers.

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    Rising Orders for Class 8 Trucks Point to Trucking Industry Rebound

    Sales of heavy duty trucks rose in February, pointing to a turnaround in the trucking industry.

    North American orders for trucks in the heaviest Class 8 weight segment rose 28 percent to 22,900 vehicles compared with the same month a year earlier, according to FTR Transportation Intelligence. February’s order level was 5 percent above January.

    “Orders have increased for four straight months, indicating the market is making a solid recovery after the second-half slump in 2016,” said Don Ake, vice president of commercial vehicles at FTR.

    The steady order trend pushed backlogs to over 100,000 units for the first time since June 2016, the research firm said.

    “Freight is starting to pick again after sagging some in 2016. Rates are climbing and fleets are feeling much more confident about business going forward,” Ake said.  “Truck builds and sales should now begin a modest upturn which should continue throughout this year.”

    The rebound is good news for truck manufacturers. The industry slashed production and laid off thousands of workers in the U.S. last year.

    Class 8 orders for the past three months translate to an annualized sales pace of 263,000 units, Ake said. Class 8 truck sales fell to 216,000 last year after reaching 278,000 in 2015.

    “This is what a turning point looks like,” Ake said.

    ACT Research says the boost in February represents a 14-month high and a second consecutive month of Class 8 orders rising above most analysts expectations.

    Analysts had expected lowers numbers because they were getting caught up in “an optical illusion,” said Kenny Vieth, president and senior analyst for ACT.

    “While the forecast for 2017 is below what actually transpired in 2016, we have to break the market down into quarters,” he said.

    Last year the industry built trucks at a seasonally adjusted annual rate of 296,000 in the first quarter and 193,000 in the fourth quarter, generating full-year build of 228,300 units, Vieth said.

    “In 2017, we will see the reversal of that trend with a first quarter annual production rate of around 200,000 units, and a build rate in the neighborhood of 230,000 at the end,” Vieth said. “Ending 2017 with a stronger build rate is a more meaningful way to close out the year despite an expected year-over-year decline.”

    Still, J.P. Morgan industry analyst Ann Duignan is forecasting production of about 200,000 Class 8 trucks this year, down 12 percent from 2016.

    The outlook for trucks in the Class 5 through 7 weight segments is better. Duignan forecasts production will rise 3 percent from the 2016 level to 240,000 units.

    Other analysts are taking an increasingly positive view of the trucking industry.

    “Orders have continued to build sequentially despite general seasonal patterns that would indicate a modest decline,” said Michael Baudendistel, an analyst at Stifel Financial Corp.

    Stifel has increased its 2017 production estimate from 200,000 vehicles to 215,000.

    “We continue to become more positive on the truck equipment space as a whole,” Baudendistel said in a report to investors.

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    Trump scheduled to meet with truckers this week to discuss healthcare

    President Trump is expected to meet with trucking industry stakeholders, including drivers and carriers, on Thursday to discuss healthcare, says Trump’s Press Secretary Sean Spicer. He made the announcement Monday during the White House’s daily press briefing.

    “The president will hold an event with truck drivers and representatives from the trucking companies and industry on healthcare and its negative impacts on their industry and livelihood, which just happens to be the largest employer in 29 states,” Spicer said.

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    Trucking Activity Looks Strong to Start 2017

    LAS VEGAS. “Truckable Economic Activity,” that chunk of the Gross Domestic Product that spends time in trucks, looks to be getting off to a strong start in 2017, according to Robert Dieli, president of RDLB, Inc., a Chicago-based economic research and management consulting firm.

    Speaking at the Heavy Duty Aftermarket Dialogue event here, Dieli said he expects the expansion phase of the business cycle to continue through 2017. “Domestic events, mainly those surrounding fiscal policy are expected to have the most effect on TEA over the course of 2017 and 2018.”

    The main components of TEA are consumption, investment, exports, imports and government. Dieli said the composition of TEA growth will continue to change. “We expect improvements in Truckable Fixed Investment and Truckable Exports. The adjustment to structural transformation will continue; of special concern is the implementation of electronic logging device regulations.” 

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