XPO Profit Jumps As It Mulls More Acquisitions, USA Truck Losses Grow

XPO Logistics' profit during the second quarter was 11.7% higher than a year ago, as a separate report said the company is looking to greatly expand its business in the next year or two. In contrast, USA Truck saw its second quarter loss more than double as revenue declined.

Net income totaled $47.6 million, or 38 cents per share, compared to $42.6 million in the second quarter of 2016, or 35 cents per share. Revenue increased nearly 2.2% to $3.76 billion.

“The most notable growth came in last mile and contract logistics, two fast-growing parts of the supply chain where we hold leading positions in e-commerce,” said Bradley Jacobs, chairman and CEO. “Importantly, we're continuing to grow adjusted EBITDA faster than revenue in both transportation and logistics."

The company's transportation segment generated revenue of $2.41 billion in the quarter. This compares with $2.42 billion for the same period in 2016, which included $133.4 million of revenue from the North American truckload unit divested in October 2016.

Segment revenue was led by increases in truck brokerage and last mile, partially offset by a decrease in global forwarding revenue and unfavorable foreign exchange rates, according to the company.

Operating income for the transportation segment increased to $160 million in the quarter, compared with $153.2 million a year ago.

XPO's Logistics segment generated revenue of $1.4 billion for the quarter, compared with $1.33 billion for the same period in 2016.

The year-over-year increase was primarily due to strong demand for contract logistics in both Europe and North America, partially offset by a decline in managed transportation revenue and unfavorable foreign exchange rates, according to XPO. In Europe, contract logistics growth was led by e-commerce and cold chain contracts in the UK and the Netherlands. In North America, the largest gains came from the e-commerce and industrial sectors.

Operating income for ...Read the rest of this story

Spot Freight Volumes Rise in Late July Push, Rates Move Little

An unusual surge of truckload freight led to higher-than-normal volume on the spot market for the week ending July 29, according to DAT Solutions and its network of load boards, but it failed to turn into any substantial rate increases.

The number of available loads increased 2% while truck posts edged down 2% compared to the previous week. Typically, July is a month when spot truckload freight activity begins to decline.

National average load-to-truck ratios stayed firm with the van load to truck ratio at 5.3 to 1, up from 4.8 to 1 the previous week. Flatbeds remained at 36.1 to 1 and reefers held at 8.5 to 1.

In the van market, the top 100 van lanes set all-time records for volumes last week. Nationally, load posts increased 6% and posted truck capacity decreased 2%. However, rates did not respond with the national average van rate falling 2 cents to $1.79 per mile, down from $1.90 per mile for the week ending July 8. (All rates below include fuel surcharges and are based on real transactions between carriers and brokers.)

Outbound average van rates also declined in several major markets:

Reefer demand remains strong for late July as load posts increased 5% and truck posts declined 2%. The national average rate fell 1 cent to $2.08 per mile, its lowest level out of the past four weeks.

Regionally, harsh weather is taking a toll on crops but several lanes showed solid gains:

The highest outbound average reefer rate last week was ...Read the rest of this story

House Bill Aims to Clarify Independent Contractor Status

Image: FMCSA

A bill newly proposed in the House would amend the Internal Revenue Code of1986 to change the classification of employers and employees.

“Currently, it is difficult and overly complicated for businesses to use independent contractors, which limits companies' growth and individuals' work,” said Rep. Erik Paulsen (R-MN), who introduced H.R. 3396 on July 25.

He added that this legislation “provides clarity and guidance for businesses so they know they are properly classifying independent contractors without fear of IRS penalties.”

Paulsen noted that he sees his bill as part and parcel of “the larger tax reform effort” that GOP leaders have promised to undertake before this year is out.

H.R. 3396 has been referred to the Ways and Means Committee. The text of the bill has yet to be released, but the Customized Logistics and Delivery Association, a proponent of the measure, said the legislation would “provide standards for determining a worker's employment status.” It would do so by putting forth a two-part test that “establishes a formal definition of who is an independent contractor and creates Safe Harbor provisions of the Tax Code" that help to define the relationship between an independent contractor and the service recipient and/or payor, said CLDA.

“This bill provides much-needed clarity and guidance for businesses that partner with independent contractors to provide the flexibility of their workforce they need to meet customer needs,” said John Benko, CLDA president. He noted that in a recent survey, over 89% of CLDA members said that their ability to use independent contractors was important to their business success.

“Independent contractors are the backbone of our industry,” Benko added, “allowing us to be responsive and flexible enough to meet changing customer demands. This bill brings clarity and transparency to the definition of an independent contractor, enabling all industries that depend on them ...Read the rest of this story

Frito-Lay Participates in CNG Station Ribbon-Cutting

Open 24-hours, the fast-fill Fayetteville station has three consumer-friendly dispensers equipped with NGV2 nozzles to optimize the experience for heavy-duty, high-capacity users, as well as NGV1 nozzles for light and medium-duty use.  (Photo courtesy of ANG)

American Natural Gas (ANG), a distributor of alternative motor fuels held a ribbon cutting ceremony in collaboration with Tennessee Clean Fuels to unveil its new public compressed natural gas (CNG) station in Fayetteville, Tenn. The facility, located at 1560 Winchester Hwy., will be open to the public and PepsiCo's Frito-Lay division will be a major customer with its fleet of CNG tractor-trailers.

“At ANG, we're committed to building better stations, serving our customers, and introducing the power of CNG to new communities across the country,” said Drew West, chief executive officer of ANG. “It's an honor to be in Fayetteville today to celebrate our new station, highlight the achievements of the region's energy pioneers, and honor Frito-Lay for its distinguished leadership and commitment to moving the alternative fuel industry forward.”

Open 24-hours, the fast-fill Fayetteville station has three consumer-friendly dispensers equipped with NGV2 nozzles to optimize the experience for heavy-duty, high-capacity users, as well as NGV1 nozzles for light and medium-duty use. The station accepts all major credit cards, including Voyager, Wright Express/Wex, and other leading fleet cards. ANG will oversee operations with state-of-the-art monitoring platforms and an expert on-call maintenance team.

“We are thrilled that Frito-Lay selected Fayetteville and Tennessee as a site to continue expanding their CNG fleet and are excited to get to know ANG as they help make it happen,” said Jonathan Overly, director of Tennessee Clean Fuels. “CNG has so many benefits: it reduces greenhouse gas and criteria pollutant emissions, supports growing more green American jobs, and reduces oil imports – don't forget that we are still roughly 20% dependent on countries like ...Read the rest of this story

ATRI Announces New Focus on Web

The American Transportation Research Institute has a new web address, www.truckingresearch.org, aimed at making it easier to access the organization's work.

"ATRI is the leading voice on trucking research and now we're doing more to raise that voice so it can be heard loud and clear by industry, our public sector partners, and lawmakers across the country," said Rebecca Brewster, ATRI president and COO.

In addition to relaunching its website at a new address, ATRI announced that it is taking steps to streamline its online presence and promote its ongoing research efforts. These efforts include the annual top industry issues survey, the cost of congestion report and identification of the nation's top freight bottlenecks.

"Key to our success as an organization is not only the quality of our research but in our ability to disseminate the findings far and wide," Brewster said. "We are taking steps, including this new web address, to get critical research findings and analysis out in the world so it can be used to improve the trucking industry's safety and productivity."

Related: ATRI Updates Online Guide to Sustainable Freight Practices

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Capitol Hill Aide to Lead Intermodal Motor Carrier Conference

American Trucking Associations has named Tyler Rushforth as executive director of the Intermodal Motor Carrier Conference.

The IMCC is an affiliated conference of the ATA, representing companies in business and services supporting intermodal transportation. IMCC is aimed at providing a voice for the intermodal carrier sector before the government and private entities on key issues, including roadability, economic and operational fairness, and infrastructure efficiencies.

Rushforth has served on Capitol Hill as counsel to the Environment and Public Works Committee and as a legislative advisor and counsel to former Senate Majority Leader Harry Reid (D-Nevada).

“Intermodal is an essential sector of the freight economy, and IMCC carries out the important mission of providing a strong, unified and effective voice for this large and growing sector,” said Chris Spear, ATA president and CEO. “Tyler brings a wealth of experience from his time on Capitol Hill — experience that will prove to be a valuable asset for our carriers.”

Randy Guillot, IMCC chairman and president of Triple G Express, praseid Rushford's "impressive resume and deep knowledge of transportation and infrastructure issues."

Related: Draytech Summit Offers Glimpse of Port Trucking's Future

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ATRI debuts new web address

The American Transportation Research Institute debuted a new web address aimed at making it easier to access the organization's work.

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