Trucking
American Trucking Associations March 21, 2023
“Tonnage has increased sequentially for the last three months totaling 2.9 percent,” said ATA Chief Economist Bob Costello. “As a result, the index is just 0.3 percent below the recent high in September. The fact that our index is growing sequentially and on
a year-over-year basis demonstrates that contract freight continues to hold up at high levels. “Looking ahead, we continue to see evidence the inventory cycle is improving, which means bloated stocks will stop being a headwind and eventually help truck freight
volumes,” Costello said. “Increased infrastructure spending will also boost volumes heading into the summer months. However, we expect to see continued freight softness related to lower home construction and slowing factory output.
The Journal Of Commerce William B. Cassidy March 21, 2023
Subscription-Based
In a move that will increase its revenue by as much as 30 percent, Knight-Swift Transportation Holdings will acquire U.S. Xpress Enterprises, a Chattanooga, Tennessee-based truckload provider, for approximately $808 million, excluding transaction costs, Knight-Swift
said Tuesday.
The deal is the largest acquisition of one publicly owned trucking company by another since TFI International acquired UPS Freight for $800 million in 2021 and is likely to echo across a trucking landscape where many smaller carriers are squeezed for cash and
ready to sell.
Related: The Wall Street Journal Trucking Giant Knight-Swift Transportation to Buy U.S.
Xpress
Fleet Owner Geert De Lombaerde and Josh Fisher March 21, 2023
Knight-Swift was borne out of a 2017 merger of Knight Transportation and Swift Transportation, which combined the truckload carriers into what is now the third-largest for-hire fleet in the U.S. At the time, nearly six years ago, Swift was operating about 18,500
units, driven by company and owner-operator drivers. Knight had about 4,500 vehicles then.
Since combining to form a fleet of some 23,000 tractors and 77,000 trailers in late 2017, Knight-Swift Transportation has grown to a fleet of 24,900 vehicles. Its 24,724 registered trailers are the third-most of any for-hire fleet, according to the FleetOwner
500 rankings.
Freight Waves Mark Solomon March 21, 2023
A leading parcel industry consultant said Tuesday that he expects a contract agreement between UPS Inc. and the Teamsters union to be reached no later than June 30.
The comments from Satish Jindel, president of Ship Matrix Inc., are the first from any consultant to go as far as forecasting a time frame for averting what could be a potentially devastating walkout by 350,000 UPS-employed Teamsters. Jindel has also gone on
record as saying there is no chance there will be a strike.
In a follow-up email, Jindel said he does not have inside information on the status of the negotiations. Instead, his views are based on having lived through many contract cycles and knowing the “current market dynamics to connect the dots and make a very credible
forecast.” UPS-Teamsters contracts typically have five-year durations.
Shippers/3PLs
The Wall Street Journal Inti Pacheco March 21, 2023
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Nike Inc. made progress working through the inventory glut that squeezed the sneaker maker last year, reporting a 14% jump in quarterly sales.
The sportswear company said its inventory increased 16% in the quarter ended Feb. 28 compared with the same period a year ago. Inventories had swelled by more than 40% in each of the prior two quarters.
Government/Safety/Sustainability
Heavy Duty Trucking Deborah Lockridge March 21, 2023
The FET is currently the highest percentage excise tax levied on any product and could add $15,000 to $30,000 to the cost of new heavy trucks, trailers, semitrailer chassis, and tractors for highway use, explains a news release from Rep. Pappas. The FET applies
to vehicles with a gross weight of 33,000 pounds.
“Nearly half of America’s trucking fleet is over 10 years old,” said Scott McCandless, chairman of American Truck Dealers and President of McCandless Truck Center of Aurora, Colorado. “Repealing the FET will be a giant step toward achieving our national goal
of turning over America’s aging truck fleet.”
Workforce
Fleet Owner Seth Skydel March 21, 2023
The value of digital technology
In her role as transportation adviser at Tenstreet, a software company that connects carriers and drivers throughout the driver life cycle, Marilyn Surber has firsthand experience with the value of digital technology. “Mobile-first technology is what a younger
generation is looking for,” she said. “Using an app like Tenstreet’s Driver Pulse lets them complete tasks easily and streamlines the hiring process for both carriers and drivers.”
“If you expect a 23-year-old to fill out paperwork manually or spend a lot of time navigating your website, you will lose them,” added Surber, transportation adviser at Tenstreet. “In addition, you can customize your processes to meet the needs of different
groups of drivers. A streamlined, modern, digital process sets the right tone from the beginning.”
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