Commentary: Welcome to the New Normal

Daniel Meckstroth, chief economist with the Manufacturers Alliance for Productivity and Innovation, speaking at the FTR
Transportation Conference. Photo: Evan Lockridge

Fleets attending the FTR Transportation Conference in Indianapolis last month wanted to know: When are things are going to get back to normal?

When are truck freight levels, pricing and even the economy going to be at the level we are accustomed to seeing?

The good news is that a recovery for freight and the overall U.S. economy is in the cards for the fourth quarter of the year, Daniel Meckstroth, chief economist with the industry group the Manufacturers Alliance for Productivity and Innovation, told attendees.

The bad news is it's not expected to be a huge boom.

After a long while, July showed “the first indication that the manufacturing inventory-to-sales ratios are falling” after higher levels hurt freight shipments earlier in the year. The July level is also the lowest in about two years. And inventory cycles, such as the high one manufacturing has experienced lately, are usually short. When they are over, you typically see a spike in production, he said.

High inventories have been a drag on economic activity as well as freight movements, but now they are coming into closer balance. This results not only in better sales of manufactured goods but others as well, resulting in an improvement in the general economy.

Helping this along is the ever-resilient U.S. consumer, who accounts for about 70% of all U.S. economic activity. “Consumers are keeping us out of a recession,” Meckstroth said. “We are in a jobs boom, with the percentage of new jobs being adding being much faster than overall economic expansion.

“It's new jobs creating new income…that's what's propelling the U.S. economy right now,” he explained.

However, there are still other problems lingering that will keep both trucking and the economy from seeing ...Read the rest of this story

DOC Miscalculation Raises Tariffs on Truck Tires From China

The U.S. Department of Commerce has admitted to a miscalculation in its preliminary anti-dumping tariff rate for truck and bus tires imported from China.

As a result, the rates of every manufacturer and importer are increasing to 30.36% - nearly 10 points higher than the initial calculation, according to a report in our sister website Modern Tire Dealer.

The change stems from two fine details that were used to establish the rate for Prinx Chengshan (Shandong) Tire Co. Ltd. One is related to using a per-kilogram basis instead of a per-piece basis in the calculation; another refers to not using a weight average when reconstructing control numbers.

The result is what the DOC calls a significant ministerial error, which it defines as a mathematical or clerical error that “would result in a change of at least five absolute percentage points, but not less than 25% of the weighted average dumping margin.”

As it relates to this anti-dumping tariff, the recalculated rate for Prinx Chengshan is 30.36%, up from 20.87%.

In every tariff investigation the DOC selects manufacturers to serve as mandatory respondents. Those companies then provide data and answer questions, and those figures and answers serve as the basis and gauge for the whole industry. Other manufacturers also may volunteer to provide their data throughout the investigation as well. Usually there's at least a slight reward in doing so because companies who don't comply can be subject to the highest tariffs.

That was the case in August when the anti-dumping rates were first announced. The DOC set a rate for Prinx Chengshan, and used that same rate for the “non-selected separate rate respondents.” A slightly higher tariff, of 22.57%, was levied against all other manufacturers in China.

As it turns out, the rate for Prinx Chengshan is now higher than the rate originally imposed on all ...Read the rest of this story

ATRI Appoints Congdon, Low to Board of Directors

Image via ATRI

The American Transportation Research Institute has appointed two motor-carrier CEOs to its board of directors.

David S. Congdon, vice chairman and CEO of Old Dominion Freight Line and Robert E. Low, president and CEO of Prime were appointed by ATRI chairman Judy McReynolds, ArcBest Corporation chairman, president and CEO.

Congdon has been in the LTL business for 43 years, serving in positions ranging from dockman and driver to director of safety and CEO. Old Dominion Freight Line was founded by Congdon's grandparents over 80 years ago.

Low in 1970 founded Springfield, Mo.-based Prime, a provider of logistics, refrigerated, tanker, flatbed, floral, and intermodal transportation. He is a past chairman of the Truckload Carriers Association.

Also joining the ATRI board of directors is Chris Spear, the new president and CEO of the American Trucking Associations.

At the board meeting, held October 3, ATRI Chairman Judy McReynolds recognized the service of several board members whose terms on the ATRI Board are concluding:

McReynolds also recognized the service of ATRI Research Advisory Committee Chairman Steve Niswander, vice president of safety policy and regulatory relations for Groendyke Transport, whose term as RAC Chairman will conclude at the end of this year.

A complete listing of the ATRI board of directors is available here.

Related: ATRI Still Seeking Carrier and Driver Input for Mayo Clinic Survey

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Brampton driver sought in fellow trucker's shooting death

Opti-Lite Brake Drum Offers Fleets a Lightweight Option

Meritor has expanded its wheel end portfolio to include Opti-Lite brake drums, positioned as a cost-conscious lightweight drum option.

The Opti-Lite drum is designed for linehaul and weight sensitive applications such as tanker/trailer and freight.

Opti-Lite drums were developed on the same platform as the SteeLite X30 brake drums and the Opti-Lite offers similar weight and fuel savings, according to Meritor. The drums are offered most common wheel-end configurations for steer, drive and trailer axle applications.

The Opti-Lite drums do not require welded on weights and offer an optimized balance spec for smoother performance on the road.

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Registration Open for 2017 Work Truck Show

To gain perspective on the work truck industry's evolving dynamics, it's important to understand the big picture, as well as the small details. The Work Truck Show 2017 and Green Truck Summit offer equipment distributors, truck dealers, fleet managers and others in the industry a unique opportunity to do both. In addition to an expansive exhibit hall featuring all the latest work trucks and equipment, the Work Truck Show 2017 includes a full educational conference with sessions covering emerging national and global trends and the new strategies and technologies being developed in response.

North America's largest work truck event is produced annually by NTEA – the Association for the Work Truck Industry. The 2017 Show will be held March 14–17 at the Indiana Convention Center in Indianapolis. Work Truck Show and Green Truck summit educational sessions begin March 14, and the exhibit hall is open March 15–17. Registration is now open at worktruckshow.com.

“This year's Work Truck Show educational conference includes sessions focused on helping attendees with the myriad of regulatory, environmental and competitive challenges they face,” says Steve Carey, NTEA executive director. “At the Show, industry professionals can take courses on satisfying federal safety requirements, optimizing fleet maintenance and recruiting the next generation of technicians. At the same venue, they can talk one-on-one with exhibiting company product engineers, get the latest product developments from leading work truck OEMs, explore fuel-saving technologies and alternative fuels, and ask NTEA staff their individual technical and regulatory questions. It's a can't-miss event.”

New educational sessions at The Work Truck Show 2017:

Diesel technicians: Is the shortage real?

The diesel technician shortage currently being experienced in trucking may be more of a management issue rather than strictly a lack-of-personnel problem, according to a panel discussion held during the annual American Trucking Associations (ATA) conference in Las Vegas last week.

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