Analysis: Freight Rate Thaw May Be in the Works

The Cass Truckload Linehaul Index shows while freight rates weren't as good last year as they were in 2015, they were mostly better than in 2014 and appear to be heading higher this year. Source: Cass Information Systems Inc., and Avondale Partners

There are real hopes that freight rates for truckload linehaul and intermodal movements may finally be headed higher, after being frozen in lower territory the last couple of years.

The most recent Cass Truckload Linehaul Index, which tracks monthly changes in linehaul rates, fell 0.9% in December, marking 10 straight monthly declines. But analysts at the investment firm Avondale Partners said there is cause for optimism.

That's because the December reading improved 2.6% compared to the month before. That marked the index's biggest month-over-month gain of 2016 and its highest reading since December 2015.

“The current strength being reported in spot rates is leading us to believe that our current -3% to 1% truckload pricing forecast may need to be improved or moved to a slightly more positive outlook,” Avondale said.

The intermodal sector, which suffered much of last year and the year before, at least compared to 2014, is expected to see some improvements as well. The Cass Intermodal Price Index, which measures changes in total intermodal per-mile costs (including fuel), increased 1.5% in December compared to a year earlier. That's after rising 0.3% and 0.4% in November and October, respectively, while posting a 2.8% December hike from November. December marked the third consecutive year-over-year gain after 21 straight months of declines.

The good news is Avondale expects intermodal pricing to improve year-over-year until late into 2017. The bad news is pricing isn't expected to reach the high levels of three years earlier.

On top of this, the Cass Freight Index, which measures monthly expenditures for shipments across multiple modes, was down far less ...Read the rest of this story

Dart Ups Long-Haul Driver Pay

Photo: Dart Transit

Dart Transit has rolled out a pay increase for its over-the-road company truck drivers, the carrier announced.

Dart is raising its starting pay for long-haul company drivers along its main freight lanes by 5 cents per mile. The company said that top-performing drivers could earn over $60,000 in the first year with the company.

Dar is also rolling out anniversary pay increases for each year a driver is with the company and a 3.5-cent per mile monthly performance bonus. It also introduced a bonus called “Sign-on Plus” that it is paid in increments from the sign-on through the first year-and-a-half with Dart.

“We are thrilled to offer truck drivers a large increase in pay,” said Russ Moore, Dart vice president of safety and fleet services. “The higher pay, combined with anniversary increases, the Sign-on Plus, and performance bonus, make Dart's pay package one of the best in the industry.”

Drivers interested in a career with Dart can visit DartTruckingJobs.com for more information.

Related: How Important is Driver Pay?

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Nissan Adds Extended King Cab for Titan Pickups

The 2017 Nissan Titan King Cab offers available 6-person seating, wide-opening rear doors and a “rear seat delete” option for commercial use with its flat floor and secure in-cab storage space. Photo courtesy of Nissan.

Nissan will offer King Cab versions of its 2017 Titan and Titan XD pickups, which allows Nissan to offer three cab options to buyers, along with the previously announced Single Cab and Crew Cab TItan models.

The King Cab Titan and Titan XD debuted during a media event at the Chicago Auto Show, which runs from Feb. 11 to 20. Nissan also brought a specially built Nissan NV Cargo X and two specially modified Titan PRO-4X models.

The King Cab arrives with two traditional doors and two wide-opening rear latching doors. It offers available six-person seating and an available rear seat delete option for commercial use with its flat floor and secure in-cab storage space. The seat delete option also removes the rear heater duct and rear roof-mounted assist grips and adds a flat rear load floor and rear wall finisher with tie-down hooks.

The new King Cab body features a roomy cab with a choice of front split bench seat or front bucket seats (standard on PRO-4X, optional on SV grade). A 60/40-split fold-down rear seat is also standard. Heated front seats are available with PRO-4X and SV grade, along with optional heated and cooled front seats on PRO-4X.

The Titan King Cab will be offered in 4x4 and rear-wheel drive and three grade levels – S, SV, and PRO-4X – with a standard 390-hp 5.6L Endurance V-8 engine and 7-speed automatic transmission. Titan King Cab offers an available maximum towing capacity of 9,420 pounds and maximum payload capacity of 1,640 pounds when properly equipped.

The Titan XD King Cab will be available in 4x4 and rear-wheel drive and three ...Read the rest of this story

FTR, CKCVR Issue Maintenance Benchmarking Study

FTR and CK Commercial Vehicle Research have released a comprehensive benchmarking study that examines fleet maintenance practices in heavy- and medium-duty fleets.

The study covers preventive maintenance intervals, maintenance and repair part and tire costs, preferences for maintenance providers, and replacement part purchases.

The report also contains information on the average age of vehicles, typical replacement cycles, and other details to be used as benchmarking tools by commercial truck fleets.

Fleets can use the 18-page report to determine how they measure up to other fleets with regard to their maintenance practices and to see how other similar operations handle these duties and contain the costs.

The report separates data on Class 8 trucks, commercial trailers by segment, and Class 6-7 trucks.

Data was collected by surveying 83 fleet maintenance executives from small, medium, and large for-hire and private fleets. In total, the respondents are responsible for 64,000 medium- and heavy-duty trucks and 120,000 trailers. All duty cycles, vehicle brands, types of trailers, and age of equipment were represented in the survey results.

FTR collects and analyzes data on North American freight transportation, issuing reports and forecasts for trucking, rail, and intermodal transportation. CK Commercial Vehicle Research surveys fleet advisors representing a mix of large, medium, and small for-hire, private, and government fleet operations.

The report is being offered at a discounted price to eligible North American fleet operations. For questions on the report, contact Don Ake by phoning 888-988-1699 x47 or emailing to [email protected]. To order a copy for your fleet, click here.

Related: The Modern Maintenance Manager

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Trucking-Futures Exchange Startup TransVix Sets up Shop in Chattanooga

Image: TransVix

TransVix LLC, a startup aimed at launching the first futures exchange based on trucking capacity, has moved its headquarters from Fort Worth to Chattanooga, Tenn., to leverage the city's emerging reputation as an entrepreneurial hive and transportation hub.

According to the company, its game plan is to create a trucking-capacity futures exchange to address rate volatility, which it regards as “one of the most significant challenges in freight transportation today.”

As TransVix sees it, currently shippers, carriers and freight brokers have no effective way to protect their market exposure on the volatility of trucking spot market pricing. But by leveraging advanced technology to create an exchange to help mitigate the pricing risks associated with the $726B trucking industry, TransVix will “enhance the way participants currently buy and sell trucking capacity.”

The company noted that freight futures have been traded in the maritime market and listed on exchanges around the world in London, Shanghai, and Singapore. TransVix would be the first exchange in the world to focus on trucking freight.

Given that the U.S. trucking and logistics market accounts for 81.5% of all freight transportation spend, per TransVix, the futures contract market potential is “an estimated 4x multiple of the underlying market revenue, creating a $2.8-trillion market opportunity for U.S. trucking futures.”

TransVix CEO Craig Fuller said the move to Chattanooga was driven by the firm's significant growth and desire to capitalize on the strengths “Gig City” offers. “Over the past decade Chattanooga has transformed into an entrepreneurial hotspot and the city is on its way to becoming the nation's capital of supply chain, logistics and transportation technology,” he said.

“Talking with business leaders, both here and across the country, it's clear that assets like our fiber-optic Gig infrastructure and Innovation District make Chattanooga a leader and global competitor in ...Read the rest of this story

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