New tools promote flatdeck safety

SWIFT TRANSPORTATION INVESTOR ALERT BY THE FORMER ATTORNEY GENERAL OF LOUISIANA: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Swift Transportation Company

Spot Truckload Freight Rates Heat Up Despite Less Freight

Spot truckload freight rates posted impressive gains the first week of this month despite a small but typical decline compared to the week before, according to DAT Solutions and its network of load boards, as shippers rushed to move cargo before closing their books on the first quarter.

The national average rate for vans and reefers each increased 6 cents to $1.69 per mile and $1.93 per mile, respectively. Flatbeds gained 4 cents for $2.07 per mile. Rates for all three sectors were also the highest out of the past four weeks. All rates include fuel surcharges.

While overall freight volume declined 1.7% and truck capacity gained 1.5%, the number of refrigerated load and truck posts was virtually unchanged compared to the previous week.The reefer load-to-truck ratio rose slightly to 6.8 loads per truck.

A 6% drop in van load posts contributed to an 8% decline in the van load-to-truck ratio to 3.4 to 1. Flatbed load posts held steady and truck posts increased slightly, which sent the flatbed load-to-truck ratio down 4% to 39.1 to 1.

In the van market, load counts in Atlanta rose and the average outbound rate gained 2 cents to $1.94 per mile last week. Rates increased on major inbound lanes, unusual for this time of year, according to DAT. Memphis-Atlanta paid 13 cents better at an average of $2.23 per mile compared to last week.

Freight volumes and rates slipped in the Charlotte market, which lost fruit in a mid-March freeze. That seemed to have a spillover effect into van capacity as Charlotte van rates dropped 3 cents to $1.89 per mile.

In the reefer sector, produce is picking up momentum as the average outbound rate from Lakeland, Florida., gained 9 cents to $1.48 per mile. Reefer load counts are expected to build in southern border markets as avocados ...Read the rest of this story

Forward Air Acquisition to Expand Intermodal Footprint

Photo: Forward Air

Yet another indicator of the upswing in trucking mergers and acquisitions is word that Forward Air Corporation has announced its wholly owned subsidiary, Central States Trucking Co., will buy substantially all of the assets of Atlantic Trucking Co., a Charleston, S.C.-based privately held provider of intermodal and drayage services.

The purchase is consistent with Greeneville, TN-based Forward Air's strategy over the past several years to expand its intermodal holdings via acquisition.

Stifel analysts termed the deal “a bolt-on acquisition,” as Atlantic's service area “basically plugs a Southeastern hole in CST's drayage footprint.”

The transaction is expected to close by the end of Q2. No terms were disclosed, but Stifel estimated the price was in the $25 million range, or five times Atlantic's $5.1 million EBITDA figure for last year. During calendar year 2016, Atlantic generated approximately $62.3 million in revenue.

The deal includes the assets of Atlantic Trucking Co. along with those of Heavy Duty Equipment Leasing LLC, Atlantic Logistics LLC, and Transportation Holdings Inc.

“We are pleased to add Atlantic to our Intermodal segment,” said Matthew Jewell, president of Logistics Services at Forward Air. “Atlantic has the management talent, fleet size, customer base, geographic footprint and quality of operations that we have been looking for to serve as our Southeast beachhead, and to complement our Midwest legacy locations.”

M&A activity in the trucking space has picked up of late, most notably reflected in the mega-deal announced ealrier this week to bring Knight and Swift together.

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For-Hire Freight Shipments Hit New Record High

A measure of U.S. for-hire freight movements set another record high in February, according to new Transportation Department figures released Wednesday, following no change the month before.

The 1.5% increase in the Freight Transportation Services Index (TSI), places the gauge at a level of 126.4 for the month, 33.5% above the April 2009 low during the most recent recession. The latest all time high exceeds the previous one hit in July 2016, by 1%.

The December and January indexes were both revised to 124.5 from 123.2 in last month's release. When February is compared to the same time a year ago the latest increase totals 4%.

The Freight TSI 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. The index 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 February increase in the Freight TSI was broad based, with growth in all freight transportation modes except pipeline. The increase took place against a background of upward signals in other economic indicators.

Employment, housing starts and personal income all grew in February. Also, the Institute for Supply Management's Purchasing Managers' Index, which measures manufacturing output, showed positive and accelerating growth. And while The Federal Reserve's Industrial Production index was unchanged, growth in manufacturing and mining offset by decline in utility output.

The February TSI increase represented the fifth month in a row when the measure moved higher or was stable, for an overall increase of 4.5%, following two months of declines.

For the year to date, for-hire freight shipments measured by the index were up 1.5% in February compared to the end of 2016.

According to the department, research has shown a clear relationship between economic cycles and the Freight TSI.

...Read the rest of this story

Volvo previews new VNR regional haul model

Volvo Trucks North America offered a glimpse of the shape of trucks to come with two preview videos for its new Volvo VNR regional haul model.

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Cameras catch reactions to new Volvo VNR