For-Hire Freight Falls for Second Straight Month

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

A measure of total for-hire freight movements in the U.S. fell for the second straight month in April, according to a report issued Wednesday by Transportation Department.

Its Freight Transportation Services Index (TSI) fell 0.6% in April from March after reaching an all-time high in February and is down 2.3% since then. When April is compared to the same time a year ago it increased 0.8%.

The March index was revised downward to 123.5 from 124 in last month's release while the February figure was also revised down slightly.

The Freight TSI, which is seasonally-adjusted, 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. It measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.

The April decrease in the Freight TSI was broad based, with declines in all freight transportation modes except air freight and trucking.

According to the department, the decrease took place despite growth in other economic indicators in April. The Federal Reserve Board's Industrial Production index grew by 1% with growth in manufacturing, mining, and utilities while employment and personal income both grew in April. However, housing starts declined, while the Institute for Supply Management's Purchasing Managers' Index showed positive but slowing growth.

The two-month decline in the index represents the third time it has decreased for two months in a row since the beginning of 2015, though it represents a more modest decrease than that of August/September 2016.

The Transportation Department said research has shown a clear relationship between economic cycles and the Freight TSI as well as its separate Passenger Transportation Services Index.

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Penske Truck Leasing to Acquire Old Dominion Truck Leasing

Penske expects its deal to acquire Old Dominion Truck Leasing to close in July of this year. Photo: Penske

Penske Truck Leasing today announced it has agreed to acquire Old Dominion Truck Leasing, based in Richmond, Va. Terms of the deal were not disclosed.

“Old Dominion Truck Leasing and Penske Truck Leasing customers will benefit from synergies in our products, technology, and services available across our combined network of facilities,” said Brian Hard, president and CEO, Penske Truck Leasing. “We share a strong commitment to service and will continue to enhance the high-quality service their customers have come to expect.”

Old Dominion Truck Leasing serves approximately 360 customers in 11 locations in five states.

According to Penske, Old Dominion Truck Leasing's products and services align well with the company's existing service offerings, including full-service truck leasing, truck rental, contract fleet maintenance, and dedicated contract carriage.

The deal is subject to various legal conditions, although both parties expect it to close in July. Once complete, the acquisition will add approximately 1,400 tractors, trucks, and trailers to Penske's fleet.

Related: The Knight-Swift Merger: Lessons from the History of Ocean Shipping

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Rolling Strong Offers Mobile Driver Health and Wellness Platform

Rolling Strong has unveiled a new mobile platform aimed at helping drivers to stay healthy. Photo: Rolling Strong

Rolling Strong, a driver wellness focused company, has announced a mobile health and wellness platform to help improve driver health, safety, and retention.

Rolling Strong was acquired by Velociti in March, and the company says that the move was a catalyst for developing a mobile health and wellness platform for truckers. The recently named president of Rolling Strong, Stephen Kane, worked with Velociti to combine mobile technology with Rolling Strong's CDL wellness program.

“Driver health and wellness is a key issue getting a lot of attention,” said Kane. “However, until now there hasn't been a tangible program to fully address the needs or the importance of the situation. The new Rolling Strong health and wellness platform is truly built for drivers and is designed to address the concerns over their health and safety.”

The new platform can be accessed from iOS and Android smart devices as well as in-cab computing systems. The Rolling Strong health and wellness platform provides drivers with guidance and real-time tracking of meals, exercise, sleep, and other metrics. Rewards and gaming features have been integrated into the platform so drives and transportation providers can create and participate in wellness challenges and competitions.

“With our new health and wellness platform, our entire team is now focused on the industry's number one asset— the driver—because these men and woman deserve an opportunity to be healthy,” said Bob Perry, chief operating officer and founder of Rolling Strong. “We're excited that Velociti's expertise in automating this process is now powering our ability to reach more drivers with our approach to improving wellness, and more trucking companies with a platform that will lead to better retention and safety.”

For more information on Rolling Strong, click here.

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Penske Truck Leasing Announces Old Dominion Truck Leasing Acquisition Penske Truck Leasing today announced it has agreed to acquire Old Dominion Truc

Penske expects its deal to acquire Old Dominion Truck Leasing to close in July of this year. 

Photo: Penske

“Old Dominion Truck Leasing and Penske Truck Leasing customers will benefit from synergies in our products, technology, and services available across our combined network of facilities,” said Brian Hard, president and CEO, Penske Truck Leasing. “We share a strong commitment to service and will continue to enhance the high-quality service their customers have come to expect.”

According to the announcement, Old Dominion Truck Leasing serves approximately 360 customers in diverse industry sectors from 11 locations in five states.

According to Penske, Old Dominion Truck Leasing's products and services align well with the company's existing service offerings, including full-service truck leasing, truck rental, contract fleet maintenance, and dedicated contract carriage.

The deal is subject to various legal conditions, although both parties expect it to close in July. Once complete, the acquisition will add approximately 1,400 tractors, trucks and trailers to Penske's fleet.

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Michelin Moves Into Telematics with NexTraq Acquisition

Michelin's NexTraq acquistion of NexTraq will enhance the company's solutions for driver safety, fuel management and enhancing fleet productivity. Photo: Michelin

Michelin has been an automotive technology leader for over a century, and now the tire manufacturer is moving into telematics with its acquisition of NexTraq, a U.S. provider of commercial fleet communications systems, announced today.

Based in the Atlanta area, NexTraq is a subsidiary of FleetCor Technologies, a global provider of fuel cards and workforce payment products.

NexTraq provides solutions for driver safety, fuel management and enhancing fleet productivity. Since its inception in 2000, NexTraq has become a leading provider of GPS fleet management solutions for fleets of small commercial vehicles (classes 3‒5) ranging from two to 50 vehicles.

“Telematics and fleet management services are a rapidly growing category worldwide and an important area of Michelin Group's overall business plans,” said Ralph Dimenna, chief operating officer for Michelin Americas Truck Tires, the heavy truck unit of Michelin North America. “NexTraq represents a strategic acquisition that accelerates our growth in telematics with synergies that increase our scale, expand our geographic footprint and strengthen overall competitiveness in fleet management technology and services in the United States.”

NexTraq has 117 employees, approximately 7,000 fleet customers, and 116,000 individual subscribers. The unit will operate independently within Michelin North America.

“NexTraq has technology that, among other capabilities, monitors reckless driving and stops texting while driving. This capability is an excellent cultural fit with Michelin's purpose and long-standing commitment to road safety,” Dimenna said.

The closing of the acquisition is subject to completion of certain customary conditions, including clearance under the Hart-Scott-Rodino Act.

Related: Michelin Taking Long View of Sustainable Transportation

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Penske to acquire Old Dominion Truck Leasing

Penske Truck Leasing is entering into an agreement to acquire Richmond, Virginia-based Old Dominion Truck Leasing. Financial terms were not disclosed.

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Michelin to buy telematics provider NexTraq

Global tire maker Michelin has agreed to acquire NexTraq, a U.S. provider of commercial fleet telematics services, from its parent company, FLEETCOR Technologies, Inc., in an all-cash transaction.

“Telematics and fleet management services are a rapidly growing category worldwide and an important area of Michelin Group's overall business plans,” said Ralph Dimenna, COO for Michelin Americas Truck Tires, the heavy truck unit of Michelin North America, in a statement.

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