Improved Freight Demand Could Increase Equipment Purchases

Source: FTR

FTR's Trucking Conditions Index for April rebounded more than four points from March, showing improving conditions despite weak growth in the contract freight market.

The April TCI hit a reading of 7.03, showing that freight demand is moving higher as the industrial sector continues to improve, with capacity tightening. The first quarter of 2017 registered the strongest freight growth of the current economic recovery, according to FTR.

“Overall, our expectation of improvements in freight demand for 2017 are coming to fruition,” said Jonathan Starks, chief operating officer at FTR. “However, we are seeing a significant difference between the contract carriers, specifically those in more dedicated routes, and the spot market.”

The Trucking Conditions Index tracks the changes representing six major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fleet bankruptcies, fuel price, and financing. The individual metrics are combined into a single index that tracks the market conditions that influence fleet behavior.

FTR expects to see modest growth for the rest of 2017 and it is projecting the index to fall off in the next few months but remain in mid-range positive territory through 2018. Spot market load activity in early June was up more than 50% compared to the same time last year and the average rate has increased 10%, according to Starks.

“We typically see spot markets move prior to the contract arena, so we would expect to see stronger contract pricing negotiations as we finish 2017 and head into 2018,” said Starks. “The market is gaining strength, and conditions for carriers are showing significant improvements.”

With improving conditions, fleets also appear to be looking to buy new equipment. ACT Research's For-Hire Trucking Index indicated that May's purchase intentions are high, with 61% of responding fleets planning to buy new equipment in the next three months. ACT says purchase ...Read the rest of this story

Pirelli Names Vitale to Head North American Commercial Tire Brand

Alex Vitale has been named the North American CEO of TP Commercial Solutions, the business unit in charge of marketing and distributing Pirelli brand commercial truck tires in the U.S. and Canada.

Vitale has more than 20 years of experience in the global tire industry. He will lead the company's efforts and expansion in the commercial truck and fleet markets in North America. Vitale is succeeding Clif Armstrong in the position.

“I look forward to continue driving the expansion of Pirelli branded truck, bus, agro, and OTR business in North America,” Vitale said. “It's an exciting time for the company and we will build on our product launches this year through further product development and offerings for the market.”

Born in Italy and raised in the U.S., Vitale has worked with companies in the U.S., Canada, Europe and emerging markets like the Middle East, South America, Africa, and Russia. Prior to his new position, Vitale was the general manager for Agro and OTR Global for Pirelli Tires. In the past, he worked for Kal Tire as the vice president of international sales and marketing and spent nine years at Goodyear as the business unit manager for EMEA and India.

TP Commercial Solutions is part of the Prometeon Tyre Group, the former Pirelli industrial business unit that supplies commercial truck tires and fleet solutions to the global market.

Related: Pirelli Bringing Truck Tires to North America

Follow @HDTrucking on Twitter

Mickey Truck Bodies Offers New Reefer Van Option

Mickey Truck Bodies has designed a refrigerated van option, featuring thermal-efficient composite panels on the roof, walls, and floor.

The Reefer body is designed to maintain temperature from 0 degrees to 32 degrees Fahrenheit in a more efficient manner than conventional panels, according to Mickey Truck Bodies. The bodies also use smooth sidewalls with no fasteners that allow for easier decal application and a “billboard” appearance.

Standard features include insulated roll-up rear doors, E-Track cargo constraints and food grade interior walls.

The company is currently building the unit in a 16-foot length but longer versions could be available in the future. Mickey evaluates the thermal efficiency of each new reefer unit to ensure that cargo is maintained at the required temperature.

Follow @HDTrucking on Twitter

Southern California Mayors Aim for Zero Emissions at Ports

(Left) Long Beach Mayor Robert Garcia and L.A. Mayor Eric Garcetti signed a joint declaration to set goals for the transition to zero emissions at Southern California ports. Photo: Office of Mayor Eric Garcetti

The mayors of Los Angeles and Long Beach, California, are aiming for zero emissions at the ports or Los Angeles and Long Beach by 2035 as part of their commitment to adopting the Paris Climate Agreement goals in their cities.

Mayor Eric Garcetti of Los Angeles and Mayor Robert Garcia of Long Beach signed a joint declaration to set goals for the twin ports to make the transition to zero emissions in their Clean Air Action Plan. The CAAP will include new investments in clean technology, expanding emissions reductions, and launching a zero-emissions drayage truck pilot in the next few years.

“Our ports are the engines that power our economy — they must also be the forces that drive our region toward a greener, more sustainable future,” said Garcetti. “I am proud to stand with my fellow Climate Mayor Robert Garcia today, as we renew our commitment to cleaning our air, and moving boldly toward our goal of zero emissions goods movement at the ports.”

A spokesman for the Harbor Trucking Association, an advocacy group of intermodal carriers in California, is supportive of clean air technology but told HDT the group is skeptical that the goals stated by the two mayors were actually achievable.

“We're not against clean technology or clean air, but you need to be careful in the goals you set,” said Weston LaBar, the executive director of the HTA. “You can't set hard goals and milestones to get to zero emissions when the technology does not really exist today.”

“As of right now, what they're asking for doesn't exist."

The two mayors also launched the Green Ports Collaborative, a program aimed ...Read the rest of this story

Port Strike Highlights Pay, Emissions Regulation Struggles

Picketers at XPO Logistics' port operations say port truck drivers should be classified as employees. Photo via Justice4PortDrivers Twitter

Southern California truck drivers and warehouse workers who serve the Ports of Los Angeles and Long Beach went on strike on June 19, protesting poor wages and labor practices.

The strike involves workers for Intermodal Bridge Transport, XPO Logistics, and California Cartage, and is just the latest in a series of wage and labor disputes surrounding the major Southern California ports complex.

In a letter from truckers to the clients of IBT that was released by the Teamsters Union, the drivers bring up the practice of hiring independent contractors to haul cargo to and from the ports as part of an “illegal business model."

“You cannot deny knowledge that your subcontractor is breaking the law as we have struck before, we have sent you letters, and the company's illegal behavior has been widely reported in the news media,” the drivers stated.

The impact of the strike is expected to be minimal to the ports, according to the Harbor Trucking Association. Similar picketing actions have occurred as many as 15 times in the last three years, and security and port operations personnel are prepared.

“It's not really a strike, it's just ambulatory picketing and [the impact] tends to be minimal,” Weston LaBar, executive director for the HTA, told HDT in an interview. "The most I've seen a dozen picketers at one terminal, most of them have single digits or no picketers whatsoever.”

The driver misclassification issue cited by the protesters argues that although the port trucking companies classify their drivers as independent contractors, they are not truly independent from the companies they work for and should be classified as company employees and given requisite benefits and wages. This has led to several lawsuits from ...Read the rest of this story

Trailer orders down in May but remain strong overall

According to data tracked by FTR Transportation Intelligence, net trailer orders for the month of May totaled 16,600 units, down 17% month-over-month but continuing to show strong year-over-year comparisons, as that's up 26% versus May 2016.

“This was a very typical month for the trailer market. Business activity met expectations, with few surprises,” noted Don Ake, FTR's vice president of commercial vehicles, in a statement.

read more

Fleets and OEMs continue to work toward more miles per gallon

I am heartened by things I am hearing out in the field.

Earlier this year at the Advanced Clean Transportation (ACT) Expo, a panel of OEM representatives responded to questions about what they would do if Phase 2 greenhouse gas (GHG) rules were altered or eliminated.

Basically, it sounds like they are going to stay the course. In part they cited fleets' continuing demands for greater fuel economy even with diesel fuel prices at relatively low levels.

read more