Cross-Border Freight Value Posts First Hike in More Than a Year

27 Oct by Vitaliy Dadalyan Tags:

Cross-Border Freight Value Posts First Hike in More Than a Year

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U.S.-NAFTA freight value percent change from previous year over the last 24 months. Graphic: U.S. DOT

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U.S.-NAFTA freight value percent change from previous year over the last 24 months. Graphic: U.S. DOT

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The total value of U.S. freight moved between Canada and Mexico during August posted its first year-over-year increase since December 2014, according to new Transportation Department figures.

The resulting 0.7% increase from August 2015 also came as just two transportation modes, truck and air, carried more cross-border freight by value.

The value of commodities moving by truck and air increased 3.4% and 4.9%, respectively, while the value of freight carried by rail fell 0.3%. Pipeline declined 4.5% and vessel dropped 12.5%. The overall value totaled $93.1 billion.

Trucks carried 65.3% of the freight moved with North American Free Trade Agreement (NAFTA) partners Canada and Mexico. Trucking accounted for $31.2 billion of the $49.7 billion of imports, or 62.8%, and $29.6 billion of the $43.4 billion of exports, 68.3%.

Rail remained the second largest mode by value, moving 15.3% of all U.S.-NAFTA freight.

Much of the earlier year-over-year declines were due to the dramatic drop in the price of crude oil compared to two years ago.

U.S.-Canada Freight Value Slips

From August 2015 to August 2016, air, rail, and truck carried a higher value of U.S.-Canada freight than a year earlier. However, the total value of U.S.-Canada freight fell to $47.3 billion, down 1.4% from a year earlier, due to decreases in the value of goods moved by vessel and pipeline.

The top commodity category transported between the U.S. and Canada by all modes was vehicles and parts, of which $5.2 billion, or 55.1%, moved by truck and $4 billion, or 42.5%, moved by rail.

Trucks carried 59.6% of the value of the freight to and from Canada. Rail carried 16.5%, followed by pipeline, 9%; air, 4.7%; and vessel, 3.8%.

U.S.-Mexico Freight Value Increases

In August the value of U.S.-Mexico freight increased 3% from the same ...Read the rest of this story

27 Oct by Vitaliy Dadalyan Tags:

Earnings Watch: UPS, ODFL Rise; Knight, P.A.M., Hub, Echo Fall

At a time when many trucking companies are reporting lower third quarter profits, two report slight gains – but they remain the exception rather than the rule.

International Package Growth Drives UPS Profits

UPS Inc. (NYSE:UPS) reported net income increased 1% to $1.27 billion, or $1.44 per share, up from $1.257 billion, or $1.39 per share, a year earlier, due in large part to higher profit from international operations. Earnings per share were 1 cent better than analysts' expectations.

Total reported revenue was $14.9 billion, up 4.9% over the same quarter last year for the Georgia-based fleet.

In the company's supply chain and freight segment, revenue increased 8.1%, to $2.6 billion, primarily due to the Coyote Logistics acquisition midway through the third quarter last year.

According to the company, weak market conditions in its air freight forwarding and less-than truckload markets weighed on top-line growth, as operating profit declined 5.9% to $206 million from a year earlier.

UPS Freight LTL revenue per hundredweight increased 3.7% over the same period last year, however, “total tonnage remains challenged by current market conditions," noted the company. UPS Freight revenue fell 5.3% to $701 million.

U.S. domestic package revenue increased 4.8% over the third quarter of 2015, to $9.3 billion, but the unit's operating profit slid 0.5% to $1.25 billion.

International package operating profit jumped 14% to $576 million, a record for any third quarter in company history.

UPS reaffirmed it expects adjusted earnings for 2016 to be between $5.70 to $5.90 per share.

ODFL Profit Edges 1.4% Higher

Profits increased by a slightly greater margin at Old Dominion Freight Line Inc. (NASDAQ: ODFL), as the mainly LTL fleet reported a 1.4% uptick, hitting $85.6 million.

Earnings per share in the most recent quarter were $1.03, 6 cents better than a consensus estimate from analysts, and up from 99 cents a year earlier.

Revenue increased just 0.4% ...Read the rest of this story

27 Oct by Vitaliy Dadalyan Tags:

Idle Free App Provides Information on APU

Phillips and Temro Industries have launched a mobile app that provides truckers with important information about their Idle Free Auxiliary Power Unit.

The app features Idle Free APU troubleshooting, shorepower locations, Idle Free Dealer locations and idling laws by state.

“Smartphone apps are increasing truckers' productivity on the road by putting important information in the palm of their hands,” said Tom Moser, president Phillips & Temro Industries. “Our new free Idle Free mobile app builds upon our commitment to helping truckers and fleets improve safety and compliance, reduce costs and increase customer satisfaction.”

With the Idle Free Service app, drivers can locate dealers who service the Idle Free APU along with their hours of operation, as well as shorepower sites for electrification for trucks. The app also includes a troubleshooting guide, a link to a compilation of idling laws by state and a feedback mechanism to help improve the app.

The app is free and is available on the Apple App Store and Google Play Store.

Follow @HDTrucking on Twitter

...Read the rest of this story
27 Oct by Vitaliy Dadalyan Tags:

Economic Watch: Durable Goods Mixed, New Home Sales Best in 9 Years

Shipments and new orders for long-lasting manufactured durable goods were varied in September. While home sales continue growing, one key economic indicator fell.

The increase of 0.8% in shipments last month is the third in the last four months and was led by a 2.3% increase in transportation orders.

In contrast, new orders for manufactured durable goods dropped 0.1%, led by a 0.8% drop in transportation equipment orders. That follows a 0.3% overall August improvement. Excluding transportation, new orders increased 0.2%. Excluding defense, new orders increased 0.7%

The overall September drop is smaller than a 0.6% decline expected by a panel of economists surveyed by The Wall Street Journal.

Orders for nondefense capital goods excluding aircraft, a proxy of business investment, fell 1.2% following three straight months of gains. It's 3.9% lower so far this year compared to the first nine months of last year.

“Machinery orders are just beginning to climb out of the hole created by the collapse of manufacturing activity in response to the strong dollar and oil bust," said Diane Swonk, analyst at DS Economics. “In fact, investment appears to have bottomed in the oil industry; we saw signs of a modest turnaround over the summer, which we expect to gain momentum in 2017.”

On a more positive note, a preliminary report released a few days earlier showed manufacturing has recovered at least somewhat this month. The Flash U.S. Manufacturing Purchasing Managers' Index from the financial information services provider IHS Markit rebounded to a level of 53.2 in October, from a three-month low of 51.5 in September.

Single-Family Home Sales Nearly 30% Higher

Sales of new single-family homes in the U.S. unexpectedly jumped in September, according to new Commerce Department figures, hitting the second highest level since the Great Recession.

The seasonally adjusted annual rate of 593,000 is 3.1% above ...Read the rest of this story