For-Hire Freight Movements Remain High Despite Trucking Decline

Freight Transportation Services Index, June 2012 - June 2017. Graphic: U.S. DOT

After hitting a new record high in May, a measure of the amount of freight moved by the nation's for-hire transportation industry declined in June, according to new Transportation Department figures.

Its Freight Transportation Services Index (TSI) declined 0.8% in June to a level of 126.2 from the month before while the May reading was revised upward to 127.2 from 126.8 and remains at an all-time high. Monthly numbers for January through April remained virtually unchanged.

Even with this drop from the month before the Freight TSI was at its second highest level of all time, exceeding the level from April by 1.6%. So far this year, while there have been four months when TSI declined, and only two months when it increased, the net increase in 2017 has been 1.3% because of the large increase in May.

Despite the month-to-month drop in June, for-hire freight shipments increased 2.9% from June 2016.

The Freight TSI measures the month-to-month changes in for-hire freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. The index consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.

According to the department, the June decline from the previous month was due to significant decreases in trucking and water while air freight and rail carloads and intermodal grew. Pipeline remained steady.

“The increase ran counter to mostly rising trends in other economic indicators,” the report said. “Employment, housing starts and personal income grew. The Federal Reserve Board Industrial Production index rose by 0.4% in June, due to growth in manufacturing and mining. The Institute for Supply Management Manufacturing index rose to 57.8, indicating accelerating growth.”

While the monthly TSI declined, the quarterly TSI covering a three-month period rose. The 1.4% second quarter ...Read the rest of this story

TorcUP offers line of Raptor torque wrenches

TorcUP is offering its line of Raptor non-impacting pneumatic torque wrenches for the trucking industry's toughest bolting applications.

“The Raptor is accurate to within 5% of its torque value compared to an impact wrench that is only accurate to within about 20% of its torque value,” explained Tim Benford, director of sales and marketing. “It has been proven that consistent use of an impact wrench can cause harm to mechanics in the form of white finger disease, carpal tunnel and nerve damage.”

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AFTC launches FSMA compliance tool

American Trucking Assns.' Agricultural and Food Transporters Conference, along with the American Frozen Food Institute, launched a new online self-assessment tool to help motor carriers evaluate their processes and procedures for complying with the Food Safety Modernization Act.

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Spot Truckload Rates Rebound, Freight Volume Unusually High

We're supposed to be in the dog days of summer but spot market truckload freight volumes are still higher than any month except June while August had a stronger start than any month in more than a year and a half, according to DAT Solutions and its network of load boards.

The surge of freight during the last full week of July continued into the week ending August 5, as the number of posted loads was nearly unchanged compared to the previous week while available truck capacity fell 2.1%.

National average van, flatbed, and refrigerated rates, which include fuel surcharges, all increased.

For van freight, load posts edged up 2% while truck posts fell 3%, bumping the van load-to-truck ratio from 5.2 to 1 to 5.5 to 1.

The national average van rate increased 3 cents to $1.82 per mile, higher than the average rates for June and July. The biggest rate jumps were on lanes heading to retail distribution centers in the Northeast in advance of back-to-school shopping season.

Buffalo saw the largest average rate gain of any major van market last week, up 11 cents to $1.98 per mile. Other key outbound markets:

Flatbed load posts declined 7% last week while the number of truck posts rose 2%. That caused the load-to-truck ratio to decline 9% to 34 loads per truck, still a very high ratio for this time of year

At $2.22 per mile, the national average flatbed rate was 3 cents higher compared to the previous week and posted its highest level out of the last four weeks.

Overall, 18% more flatbed loads moved last week than the week before and rates are holding up ...Read the rest of this story

Wabash National to Buy Truck Body Maker Supreme

Photo: Wabash National

Trailer maker Wabash National Corp. (NYSE:WNC) will acquire truck body maker Supreme Industries, Inc. (NYSE MKT:STS), the two Indiana-based manufacturers announced late on August 12.

The driving factor behind the buy was cited as the impact that the rising tide of e-commerce shipping business is having on the need for more “final mile” deliveries.

“Wabash National has been closely monitoring the transportation landscape as the growth of e-commerce has continued to change the logistics model,” said Dick Giromini, CEO of Wabash National, in a statement.

“We formally entered the final mile space in 2015 with the launch of our dry and refrigerated truck bodies, and we have been aggressively growing our presence and product offering over the past two years," he continued. "This acquisition supports these efforts and accelerates our objective to transform our business into a more diversified industrial manufacturer.”

“Combining with Wabash will enhance our ability to innovate more quickly and create more value for customers,” said Supreme Industries CEO Officer Mark Weber. “We found a cultural fit with Wabash National. Because of their commitment to safety, innovation and customer relationships, I'm confident joining the Wabash National family will benefit our employees, customers and distributors.”

The firms stated they have entered into a definitive agreement under which Wabash National would acquire all of the outstanding shares of Supreme in a cash tender offer for $21 per share, which represents an equity value of $364 million and an enterprise value of $342 million.

Wabash National, launch in 1985 in Lafayette Ind., is among North America's top producers of semi-trailers and liquid transportation systems. Its products include dry van and reefer trailers and truck bodies as well as platform and bulk tank trailers. Founded in 1974, Goshen, Ind.-based Supreme is one of the largest U.S. manufacturers of truck bodies, ...Read the rest of this story