Trucking
DAT Freight Analytics May 22, 2023
Weekly snapshot by the numbers of van volumes and spot rates
Shippers/3PLs
Supply Chain Dive Max Garland May 22, 2023
• Target is increasing its use of larger delivery vehicles in markets served by its sortation centers, improving capacity and creating more efficient routes, executive vice president and COO John Mulligan said on an earnings call last week.
• For routes previously served by sedans, SUVs and minivans can deliver more than double the number of packages while the company’s “high-capacity vans” are able to service nearly five times as many packages, Mulligan said. Target has been testing high-capacity
van routes at Dallas and Minneapolis sortation centers.
• About 65% of Target’s last mile deliveries served by its subsidiary Shipt were made with a larger vehicle in the first quarter, versus zero a year ago, Mulligan said. “This resulted in meaningful cost savings for our last mile delivery program overall,” he
added.
LinkedIn Dr. Jason Miller May 22, 2023
Folks looking at the headline e-commerce as a percent of total retail sales series likely are thinking “nothing to see here.” However, when you remove motor vehicle and parts dealers (NAICS 441) as well as gasoline station (NAICS 447) sales, we see a very different
pattern as shown in my chart below, where I've made some additional calculations from the Census Bureau’s detailed data release and then seasonally adjust the data. Thoughts:
Q1 2023 saw a sharp drop in e-commerce as a percentage of retail trade sales. In fact, the series fell within sampling error of the pre-COVID trendline. This is the first time that we have observed this happen.
Industry
The Wall Street Journal Costas Paris May 22, 2023
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Ship operators including A.P. Moller-Maersk MAERSK.B -0.76%decrease; red down pointing triangle and Hapag-Lloyd say they need freight rates to increase to cover their operating costs. For now, there are too many ships in the water bidding for cargo, resulting
in heavy competition on prices.
Average daily freight rates from Asia to the U.S. West Coast across the Pacific are at roughly $1,500 per 40-foot container, compared with more than $14,000 a year ago, according to the Freightos Baltic Index. The cost to send a box from Asia to Europe is at
roughly $1,400, compared with nearly $11,000.
Transport Topics May 22, 2023
• Diesel prices have dropped for the past five weeks, according to EIA, after a 1.8-cent rise April 17.
• Diesel prices have fallen 73.9 cents since their 2023 high of $4.622 on Jan. 30.
• Diesel prices are down $1.688 from the same time in 2022.
• Diesel prices fell in nine of the10 regions in EIA’s weekly survey and were flat in California. The largest drop was 7.7 cents a gallon in New England, and the smallest decrease was one-tenth of a cent in the Rocky Mountain region.
Link: Energy Information Administration Gasoline and Diesel Fuel Update
Technology/Innovation
Freight Waves Grace Sharkey May 22, 2023
Lewis’ main focus is on the principle of economies of scale, through which cost advantages are achieved by increasing a level of production. Put simply in freight terms, the more shipments available within your network, the more likely you are able to bring
down costs and waste for shippers.
Yet, Lewis explains this has not been achievable for truckload market participants.
“Shippers work with dozens or even hundreds of truckload carriers and brokers who compete for their business. This is currently the best strategy for shippers to get competitive coverage, pricing and service, but it leads to a transitory or what-have-you-done-for-me-lately
mentality that limits the opportunity for each individual provider to think long term, and it prevents big bets that could lead to step-function improvements in service and cost,” said Lewis.
Government/Safety/Sustainability
Transport Topics Eric Miller May 19, 2023
A Texas state court has denied an appeal by Werner Enterprises Inc. of an $89.7 million jury verdict in a case involving a 2014 fatal crash.
“We have inspected the record and find no error in the judgment,” seven of the nine justices wrote in a May 18 opinion. “We order the judgment of the court below affirmed. We order appellants, Werner Enterprises, Inc., and [truck driver] Shiraz Ali, jointly
and severally, to pay all costs incurred in this appeal.” Two justices wrote dissenting opinions in the case.
The New York Times Ana Swanson May 21, 2023
Subscription-Based
As the world shifts to cleaner sources of energy, control over the materials needed to power that transition is still up for grabs.
China currently dominates global processing of the critical minerals that are now in high demand to make batteries for electric vehicles and renewable energy storage. In an attempt to gain more power over that supply chain, U.S. officials have begun negotiating
a series of agreements with other countries to expand America’s access to important minerals like lithium, cobalt, nickel and graphite.
Transport Topics Noel Fletcher May 22, 2023
The new law stipulates that truck drivers be allowed to use an existing bathroom facility located either on the premises of or operated by a shipper or consignee (receiver) if the restroom is intended to be used by their employees or customers.
The language of the law defines consignees as a person or business that takes delivery of property, cargo or materials transported in interstate or intrastate commerce from a motor carrier.
Bathrooms must not be located in an area where providing access would create an obvious health or safety risk to the motor carrier, the shipper, receiver or employees.
Other terms of the new law say shippers/receivers are not required to make any physical changes to a restroom and may have a company employee accompany a motor carrier to the restroom.
Wired Arian Marshall May 17, 2023
The startups and California have a lot of work ahead. The state energy commission has estimated it will need 157,000 more chargers dedicated to medium- and heavy-duty trucks by 2030—a target that would require building more than 450 per week. “The state needs
to install a biblical amount of infrastructure,” says Adam Browning, the executive vice president of policy at Forum. “We need a Manhattan Project of charging.”
CCJ May 22, 2023
A coalition of groups, including the Owner-Operator Independent Drivers Association and the International Brotherhood of Teamsters, penned a letter last week to House Transportation and Infrastructure Committee leaders noting their opposition to any legislation
that would increase truck weight or length limits.
Heavy Duty Trucking May 22, 2023
Cleaner Internal Combustion Engines
The Environmental Protection Agency’s new Clean Trucks Plan establishes 2027 as the sunset year for new diesel engine development programs by North American manufacturers, according to the report. Diesel engine NOx emission standards also will require significant
reductions as detailed in the Final Rule for Control of Air Pollution from New Motor Vehicles: Heavy-Duty Engine and Vehicle Standards. Those new standards will mandate emissions 80% lower than current standards.
Those new standards will mean significant cost increases in the purchase of a new Class 8 tractor, according to the brief, which reports the price may grow by up to $30,000.
Workforce
Fleet Owner Scott Keith May 22, 2023
Over half of leaders surveyed are already using or plan to use autonomous vehicles and/or equipment in 2023, and 42% said testing or adopting autonomous technology is a critical priority for this year.
Over half of leaders surveyed are already using or plan to use autonomous vehicles and/or equipment in 2023, and 42% said testing or adopting autonomous technology is a critical priority for this year.
Much of the investment anticipates increasing reliance on automation for businesses to stay competitive, with 91% of leaders planning to employ more automation in their operations.
Generative AI, such as the likes of ChatGPT, has received much buzz in the past year, and 31% of respondents already use similar technology in their operations. However, by 2024, adoption is expected to ramp up, as 84% of leaders plan to utilize generative
AI in their operations.
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