Author: Vitaliy Dadalyan

Cargo Thefts Decline, Average Loss Increases

<img width="150" src="http://www.automotive-fleet.com/fc_images/news/m-a5903fe0-82d7-4e29-8adf-80c06a129dbb-cnet-2016-q2-heat-map-clusters-black-1.jpg" border="0" alt="

Highlighted areas show incidents of the most cargo thefts in the second quarter. Graphic: CargoNet

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Highlighted areas show incidents of the most cargo thefts in the second quarter. Graphic: CargoNet

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A new report reveals the number of reported cargo thefts in the U.S. fell during the second quarter of the year compared to the same time in 2015, but the average value of the heists increased, according to the cargo theft prevention and recovery service CargoNet.

Its command center logged 297 reports of cargo theft, identity theft, vehicle theft and other criminal intelligence matters relating to the United States and Canadian supply chain. Of these incidents, 192 involved thefts of cargo, down 15% compared to a year earlier.

An estimated $39 million in cargo was stolen in second-quarter 2016, up $1.3 million from the 2015 second quarter. Sixty-one percent of incidents had a loss value recorded, averaging $330,339, up $63,243 from cargo theft incidents reported in second-quarter 2015.

Also in second-quarter of 2016, CargoNet recorded eight cargo theft incidents worth $1 million or more and one valued at an estimated $8 million.

During the most recent quarter, $14.6 million in electronics items were stolen in cargo thefts, the most costly category, but not the most frequently stolen commodity. Food and beverage items were stolen most often, though losses in the category decreased 17% year-over-year, totaling $3.81 million.

Warehouse or distribution center locations were the most common location for cargo theft, with 53 thefts. Unsecured yards were the next most common with 29 cargo thefts, growing 45% year-over-year.

Fifty-nine percent of unsecured yard thefts occurred in Texas and California, though the Lone Star State had a larger share. In contrast, cargo thefts were down 26% at truck stops and 36% lower at parking lots.

Many of the top states showed a decrease or little change in reported cargo theft when comparing the second quarters of 2015 and 2016. However, cargo theft incidents in California climbed 86%, from 37 reported incidents to 68 reported incidents, totaling $17.4 million in losses. Nineteen fictitious pickups were reported also in the state, eight more than in second-quarter 2015.

Across the United States and Canada, 139 trailers and 124 tractors were reported stolen in second-quarter 2016, down from 173 trailers and 143 tractors in second-quarter 2015.

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Spot Market Flatbed Rates Continue Rise; Vans, Reefers Fall Again

The number of available loads on the spot truckload freight market increased 3.5% during the week ending July 30, sending load-to-truck ratios higher at the close of July, but only flatbed rates are continuing to head higher.

New figures provided by the freight matching service provider DAT Solutions, based on its load boards, show the number of flatbed load posts fell 3% and truck posts declined 7% compared to a week earlier, causing the load-to-truck ratio to increase 5% to 14.4 loads per truck.

The national average flatbed rate increased 1 cent to $1.92 per mile. All reported rates include fuel surcharges.

Most major flatbed markets were down but one bucked that trend, Raleigh, North Carolina, where strong construction activity helped propel spot rates up 14 cents last week to an average of $2.54 per mile. The lane from Raleigh to Tampa has gained 35 cents in the past month to $2.55 per mile.

On the dry van side there is one surprise, according to DAT, the monthly average spot rate of $1.64 per mile in July is 2 cents higher than the average in June, when shippers typically have more demand for truckload capacity.

The number of van-load posts increased 6% last week while the van load-to-truck ratio rose slightly to 2.8 loads per truck on a 5% drop in the number of posted trucks. Regionally, markets with the highest average outbound rates showed little or no change compared to the previous week, but ranged from a low of $1.58 per mile in Dallas to a high of $2.12 in Los Angeles.

Meantime, the national average spot reefer rate fell another 3 cents to $1.93 per mile. That's below the June average but only by 4 cents. By comparison, last year's national reefer rate dropped 10 cents from June to July

The number of reefer load posts gained 13% last week while truck posts fell 5%, which led to an 18% jump in the reefer load-to-truck ratio to 5.1 loads per truck.

Overall activity in DAT's spot freight market happened as the total number of available loads increased 3.5%, truck posts declined 5% and the national average price of diesel slipped 3 cents to $2.35 per gallon.

“The typical mid-July slump isn't as bad for some truckers as it was in previous years,” said DAT Analyst Peggy Dorf last week in a post of the company's blog. “A downturn in July is a normal seasonal trend on the spot market, but it's sometimes followed by a rebound in August and September. Reefers may get a pay raise then, too, when grocers stock up on fresh food for back-to-school season.”

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Slump deepens for heavy truck orders

Medium-duty orders down as well, but not steep as those for Class 8.

A deep decline in Class 8 orders for the month of July is not surprising trucking industry analysts all that much, as both freight demand and rates remain subdued.

North American Class 8 orders slumped to 10,500 units in July, according to data tracked by ACT Research, down 19% from June, down 57% year-over-year, and marking the lowest order level since the first quarter of 2010.

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Test Drive: Western Star’s 6900XD Heavy, Heavy Hauler

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Western Star's new 6900XD, hooked to a SmithCo 70-ton side dump trailer. Photos: John G. Smith

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Western Star's new 6900XD, hooked to a SmithCo 70-ton side dump trailer. Photos: John G. Smith

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Not all heavy trucks travel on the highways, and that's why we were there when Western Star launched its head-turning 6900XD with the MBT-40 option.

The 6900 has been around for a long time. That doesn't mean it's old; it's been a work in progress all that time. The new XD (extreme duty) version the company brought to Michelin's Laurens, S.C., proving grounds for this demonstration represents the pinnacle of that evolution. While the truck is remarkable enough, Western Star has also developed a package that offers the customer unmatched versatility, called MBT-40. That stands for Multi Body Transformer, and it literally gives the customer several trucks for the price of one.

The truck can be engineered for on-road operations as well as different off-road applications. We drove the off-road version, engineered specifically for extremely rugged environments – in this case, mining operations. Even within that sphere, Western Star offers configurations for long-and short-haul operations. Long-haul is defined as anything in excess of 12 miles. In mining, you're moving earth and ore around a mine site or you're hauling it up out of a pit. The specs are quite different, and they include changes to the tires, brakes and powertrain.

For example, this truck had dry drum brakes, akin to what we find on a highway truck only bigger, as opposed to a wet-disc brake system. These systems are better suited for long steep grades with GVW in excess of 150,000 pounds. They also produce more mechanical drag when they are not applied, so fuel efficiency can be a concern. A Western Star brochure claims the truck configured as we drove it would consume about 7 gallons of fuel per hour, which is about the same as a highway truck averaging 8 mpg.

The truck also has high-pressure tires (145 psi) for reduced rolling resistance as opposed to softer tires designed for superior traction.

The powertrain is not for the faint-hearted. Western Star offers four engines, the DD15, DD16, Detroit Series 60 (until the end of 2017) and the Cummins ISX in ratings up to 600 hp and 1,850 lb-ft.

“The Tier III-compliant 505-hp Series 60 is a new engine, not a reman,” says John Tomlinson, XD and vocational sales manager for Western Star. “It's available through special arrangements Daimler negotiated with EPA quite a few years ago. The DD15 and 16 are EPA 2017 compliant. We bypassed Tier IV and went right to EPA 17.”

pstrongWestern Star's 6900XD in dump-box trim. Note the Palfinger hoist attached to the nose of the box. /strong/p

The basic chassis is available in 6x4, 6x6 or 8x8 twin-steer (all-wheel drive), which demands a transfer case and often an auxiliary transmission (such as the 3-speed Fabco FAT-30), in addition to the 7-speed Allison 4700 RDS or ORS (Off Road Series) automatic transmissions.

Axle-wise, the 6900XD features planetary axles with a final drive ratio of 11.26:1. Compare that to a downsped highway truck with a ratio of perhaps 2.4 or 2.26:1. The truck configured as we drove it had a top speed of 43 mph, but it can do that up and down hills and on flat ground all day long.

Depending on the exact spec and the trailer you might be pulling with it, the standard configuration gives you a capacity of 40 metric tons, with an option of going to 100 metric tons. If you go all out and use a heavy-haul trailer with the correct fifth wheel rating, pulling capacity can soar to 180 tons.

pstrongWater tanks are used to keep dust down. This 8,000-gallon tank slips on and off the truck in mere minutes./strong/p

The MBT option

The MBT-40, dubbed the Multi-Body Transformer for its ability to quickly change from one fully functional cab-controlled body application to another, is a new concept for off-road equipment markets. The MBT-40 package allows customers to go, for example, from a 70-ton tip tractor (like the one we drove) to a 35-ton dump body to an 8,000-gallon water tank in a matter of minutes.

The MBT-40 uses a 68,000-lb Palfinger G68 hook-lift to hoist the various bodies up onto the frame, much the same way a roll-off truck works. The in-cab control system and the self-adapting onboard hydraulics package automatically determine which body has been dragged aboard and assigns the controls accordingly. All the operator has to do is hook up the control and actuator lines and drive away.

It is designed to replace the need for multiple pieces of dedicated off-road equipment on a job site that sit for long periods of time when they are not needed, says Tomlinson.

“The MBT-40 package is a game changer in construction applications for its ability to be multiple pieces of equipment in one chassis,” he said. “The development of this platform was all about finding better economic ways of filling needs for our customers. Off-road chassis equipment can be expensive to buy and maintain, and new emissions levels are making the investment even more costly.”

Engineers from several truck body manufacturers came together to design and test their equipment on the XD chassis, including Carco Industries, Klein Products, Ground Force, SmithCo and Palfinger. All had to make some design changes to their typical configurations to accommodate the quick-hookup electrical and hydraulic connections, and to accommodate the lift mechanism. Word from the field is they are very happy with the opportunities the MBT concept offers and are reportedly busy working on more body configurations to suit equipment in other applications.

WATCH: Focus On... Western Star's MBT-40 [Video]

pstrongThe MBT-40 in action. Why buy a dump truck and a water truck when you can run both bodies on the same chassis?/strong/p

On the trail

The last thing they told me before I put the truck into gear and drove off was, “It takes a few acres to turn the thing around.” Knowledge gained from previous experience pulling trains told me I had to be sure I had a way out before nosing in somewhere that I couldn't turn around. Hence, I went straight when I should have turned right because I could see the path ahead. Not knowing the path ahead led to the off-road section of the proving ground, I blithely drove on through the windy and hilly dirt road they had been running the dump trucks on all day. There were some very tight turns and a few hillocks I feared I might bottom-out the trailer, but I soldiered on.

Unknown to me, there was a bunch of head-slapping and eye-rolling going on behind me in the gallery where my colleagues sought refuge from the South Carolina sun. What the event officials neglected to tell me was the tractor-trailer setup was supposed to stay on the gravel road.

I have pulled 140,000-lb loads off road before, back in my real driving days, and with much less truck than the 6900XD, so I wasn't the least bit concerned. The 500-hp DD16 was churning out all the torque I needed, and the Allison was bouncing around between 2nd and 3rd gear like a day in the park.

With the big steel front fenders and steel railings out front, it felt a little like sitting in a locomotive — though on the wrong side of the cab. It was a rough ride to be sure. My camera man, John G. Smith of Today's Trucking, did his best to keep the camera pointed my way, and he mostly succeeded. Rough though it was, it was manageable. And it was really quiet in the cab as well.

pstrongThe side-dump option means no time is wasted getting rid of the load. /strong/p

On a few occasions, the ground turned from a 2- or 3-inch-deep layer of dust over a firm surface, to a morass of soft, talc-like dust at least a few feet deep, replete with tire ruts from previous passes of the dump trucks. Again, my 140,000-lb 6900XD just dug in and got the job done. I stopped at one point to retrieve a GoPro camera that had been tossed off the truck by a particularly nasty bump. Everyone back in the gallery believed I had become stuck.

Not a chance. I found the camera, stuffed it back into gear and plowed back through the dirt heading for the shelter.

Later, Kelley Platt, the president of Western Star, told me she was very pleased that I had taken the truck off-road, though she admitted I was in uncharted territory and they were all holding their breath waiting to see if I would make it out.

I had little doubt the mission would be a success. With six wheels driving there's tons of traction and more than enough power to keep everything moving.

Earlier in the day Platt put a smile on a few journalists' faces by calling the 6900XD a “kick-ass truck.” I couldn't agree with her more.

Related: Western Star Debuts Extreme Duty Off-Road 'Transformer'

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