Spot Truckload Freight Rates Soar Along With Load-to-Truck Ratios

Graphic: DAT

Average spot truckload freight rates jumped sharply for the second straight week in all three major equipment types while load-to-truck ratios also headed much higher for the week ending June 10, according to new figures from DAT Solutions and based on its network of load boards.

The number of available loads was up 30% compared to the previous week, which was shortened by the Memorial Day holiday and included the annual Roadcheck truck inspection blitz. A 20% increase is more in line with expectations.

According to DAT, brokers and shippers paid a premium for capacity in most major markets and lanes. Load-to-truck ratios reflected the increased freight activity:

Nationally, the number of posted van loads increased 12% while truck posts were 8% higher. The national average van rate gained 6 cents to $1.79 per mile. Outbound rates were up in almost every major van freight market:

Of the top 100 van lanes, only 26 had lower rates.

Reefer load posts increased 30% while truck posts fell 2%, which helped move the national average rate 7 cents higher to $2.11 per mile. California shipments are expected to stay strong at least through the Fourth of July, and a few lanes crossed the $3 mark:

Florida outbound rates tumbled, including Lakeland-Charlotte, which plunged 84 cents to an ...Read the rest of this story

No Tariffs, No Certainty for Truck Tires

“Due to consistently lower diesel prices, many fleets are asking for tires that offer long tread wear and enhanced traction,” says Brian Buckham at Goodyear.

When it comes to medium truck tires, fuel efficiency and cost-per-mile considerations remain priorities, but there are other trends driving the segment as well.

Heavier front axles on trucks are requiring higher load ratings on steer tires. Fleets are adapting to wide-base tires.

Smart tires, outfitted with sensors, are monitoring everything from changes in a tire's pressure to the truck's load and speed. The data can help fleet managers calculate and understand the factors contributing to tire wear.

And those are just a few of the highlights. Fourteen tire manufacturers outlined the top trends in truck tires.

But there's another force at play in the current truck tire market, one some might have thought was settled. Tariffs — and even a lack of tariffs — are creating uncertainty.

The decision in February 2017 by the International Trade Commission (ITC) not to impose tariffs on truck and bus tires from China was a stunner. There had been no indication leading up to the ITC's vote that the case would go that way, and the early stage of the investigation indicated nearly all truck and bus tires from China would be subject to tariffs of around 50%. Dealers and tire distributors tried to beat what seemed like an inevitable price hike. Now they're sitting on excess inventory as these imports are returning to the U.S. market.

Rick Phillips, vice president of sales for Triangle Tire USA, says that's the biggest impact of the tariff decision. “But going forward the impact of the decision will ultimately be determined by the end users buying the tires, and by the dealers delivering the tires.

“The market certainly has an appetite for products in this space and that ...Read the rest of this story

Michelin Reveals ‘Wheel with No Air’ Tire Concept

Michelin's long-term Visionary concept can perhaps be best summed up as a "wheel with no air." Photo: Michelin

MONTREAL. Looking not unlike a lushly blue life form on James Cameron's cinematic world of Pandora, the prototype of Michelin's Visionary concept tire glowingly held center stage here on June 14 at the tire maker's Movin' On global conference on sustainable transportation.

Michelin Group Executive Vice President of Research and Development Terry K. Gettys called the airless tire-and-wheel combination a long-term concept that represents nothing less than “a concrete demonstration of a system of solutions for the future of sustainable mobility.”

More specifically, it can be viewed as the sum of three key elements:

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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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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.

Follow @HDTrucking on Twitter