How the Amazon-Whole Foods Deal Could Change Trucking

New market trends, including the recent Amazon acquistion of Whole Foods, are creating opportunites for fleets willing to rethink pickup and last-mile delivery. Photo: Tiger Cool Express

More than two thousand years ago, merchants in the market square in Pompeii felt an ominous rumbling under their feet and glanced nervously at the smoking volcano off in the distance wondering what, if anything, was going to happen.

Metaphorically speaking, U.S. retailers nationwide felt a similar ominous rumbling last month. While the cause of those shudders is not an active volcano, the acquisition of Whole Foods by Amazon is likely to prove as disruptive an economic force in the coming months as Mt. Vesuvius proved to be for those Roman merchants so long ago.

And the shockwaves from this deal will not stop with brick-and-mortar retailers. They could potentially transform almost every aspect of our economy and long-held models of consumer behavior. And certainly, no market segment will be hit harder, or sooner, than logistics and transportation.

With questions swirling about how the Amazon-Whole Foods acquisition will affect trucking and when, transportation and logistics equity research firm Stifel recently tapped Tom Finkbiner and Ted Prince, founders of Kansas City-based Tiger Cool Express, a large-scale, stand-alone, refrigerated intermodal carrier to discuss in an analyst call the timing and degree of changes this move will have on trucking and logistics in the near future.

The bulk of the discussion, which you can read here, focused on the perishable foods market and how this acquisition, technology, regulations, and competitive pressure will affect fleets and intermodal operators today.

“This is a $40 billion market but it's a very sophisticated market and a very complicated market with respect to transportation,” Finkbiner noted. “There is the fresh portion [the produce] and the processed portion [where processed foods are made]. An example of a ...Read the rest of this story

Purkeys Offers Preventative Maintenance Tool

The Purkeys Handheld Electrical Analyzer allows technicians to quickly test the electrical systems of heavy-duty vehicles.

The tester has a menu-driven system that guides technicians through tests for heavy-duty vehicles' starting, charging, and battery systems. It is designed to simplify the process of identifying and troubleshooting electrical issues.

The portability and light-weight design of the Handheld Electrical Analyzer allows technicians to use it in the field or in the shop. Optimized for AGM and flooded cell batteries, this device can record its testing history with printable results.

The Handheld Electrical Analyzer has multiple leads to conduct preventative maintenance checks, battery tests, and more. It can apply 40 to 120 amps for automated load tests while testing for voltage drop.

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Can trucking benefit from those seeking a career change?

Lately, there seems to be a growing uptick in the number of working adults in the U.S. who desire a chance to change careers. That would seem, potentially, to open up an opportunity to bring fresh blood into the arteries of the trucking industry – an opportunity I've mentioned in this space before.

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Muncie Power releases new load-sense valve

Muncie Power Products has expanded its valve line with a new post-compensated, sectional, load-sense valve – the L125.

A 33 GPM nominal flow rate valve, the L125's inlet is capable of a maximum of 40 GPM and its work sections a maximum of 26.4 GPM.

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New U-Haul location in Smithtown

U-Haul Company of New York and Vermont announced Trannyman Transmission & Auto has signed on as a U-Haul neighborhood dealer to serve the Smithtown community.

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Wilwood Engineering recalls select master cylinders

Wilwood Engineering Inc. of Camarillo, CA, has notified NHTSA of a defect in certain 7/8” bore Tandem Master Cylinders (with integral reservoir) and its intent to voluntarily rebuild or repair the affected parts. Wilwood customers will be notified of this recall starting this month.

The recall is limited to the following part numbers:

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Celadon Names New CEO, Chairman of the Board

Paul Svindland Photo via LinkedIn

Celadon Group has announced the appointment of Paul C. Svindland as chief executive officer, effective on or about July 24. He will succeed Paul Will, who will retire as CEO and chairman of the board. Svindland will also serve as a member of the board.

Current lead independent director of the board and chairman of the compensation committee Michael Miller will replace Will as chairman.

Svindland currently serves as chairman and CEO of Farren International Holdings, a private equity-backed holding company for multiple trucking companies. Before it was merged with Farren International Holdings, Svindland served as CEO of EZE Trucking Holdings.

"I have spent most of my career helping transportation companies realize their true potential,” said Svindland. “With its large asset base, broad international network, niche businesses, and dedicated associates, I believe Celadon has tremendous untapped opportunity.”

Prior to joining EZE, he served in various executive positions at Pacer International, AlixPartners LLP, and ICG Commerce. Svindland's experience also includes several years in management roles with Maersk. He serves on the boards of Suntecktts, HwyTribe, and The Salzberg Program at The Whitman School of Management at Syracuse University.

Svindland holds a Bachelor of Science degree from the Syracuse University School of Management and an MBA from The Wharton School of Business at the University of Pennsylvania.

Celadon has had serious financial difficulties in the past year resulting in major management changes. The firm posted a $10 million operating loss in the first quarter of the year and was threatened with delisting its stock on the New York Stock Exchange.

“Given his background and the insight he has already offered, we fully expect Mr. Svindland to hit the ground running,” said Miller. “As the newly appointed independent chairman, I also look forward to working with Mr. ...Read the rest of this story