Showing posts with label Transportation and Logistics. Show all posts
Showing posts with label Transportation and Logistics. Show all posts

Will Trucking Pay The Price For The Fiscal Cliff?


I am not sure whether the fiscal cliff is political propaganda or is a real threat to the economy and the lifeblood of his economy, the trucking industry. I know both parties have been known to drag these out and the Federal government has gone unfunded for a few weeks.
US truck - California 2007
The Fiscal Cliff? (Photo credit: Wikipedia)
That is political posturing that gets publicity. Letting the entire economy go down the toilet to prove their point is unacceptable. I have featured this topic on a couple of other blog posts which I will link here.






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Will Rail Overtake Trucks in Volume Someday?

The Return of Rail

Over 5 billion dollars have been leavied against the trucking industry and it has taken its toll.
Freightliner truck at Olympic Bouleward, Los A...Image via Wikipedia
  1. There are less drivers
  2. Higher costs have put scores of truckers out of business
  3. AND NOW...

Railroad is picking up the slack. I have just read that they are reaping huge profits. When I say huge I mean
enough to spend our 10 billion dollars on infrastructure improvement. WHAT..lets do a comparison

  • Trucking has added 5 billion dollars of cost    
  • Rail is able to spend 10 billion on infrastructure from profit
I am glad that the jobs are just moving to other forms of American business but I do not understand
why the federal government has such a campaign against trucking. Maybe they did not set out to do this but this is definitely the result

for more information about the rise of rail CLICK HERE



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Will Rail Impact Trucking?

US truck - California 2007Image via WikipediaExcellent article on the potential for rail to take away trucking business.

Thoughts: Owning a truck has become very expensive. Rail taking away business is not that outlandish since trucking:

  • Is heavily tied to the cost of fuel
  • Is overegulated
  • Has a driver shortage
article link: 

http://money.msn.com/top-stocks/post.aspx?post=d5e78e9e-25cc-4456-adbe-fb1f206606fb
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The Fake Trucker Confidence Scam..Making It Harder On The Rest Of Us


Containers of K Line, a Japanese shipping comp...Confidence Scam Artists Posing as TruckersAs you know thieves are becoming more and more sophisticated and the internet is not helping. One confidence scam to beware of is the dummy shipping company. Basically a conman sets up a dummy online shipping company and bids for freight to steal. Whats really sneaky though is that the thieves will often wait a few loads to lull their victims into trusting them. Some of these scam artists actually have real DOT permits and insurance to further appear legitimate. This is only going to make it harder on the independent owner operator who will come under scrutiny since they may not be as well known as a larger company. 

http://fleetowner.com/management/news/cargo-thieves-high-tech-tactics-0830/

 

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The Truck Driver Shortage is Intensifying..

From TruckingInfo.Com
2011
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Truckload Driver Turnover Rises to 3-Year High in 2nd Quarter

The turnover rate for over-the-road truck drivers rose to 79% in the second quarter, according to American Trucking Associations' latest Trucking Activity Report. It is the third quarter in a row of increased churn in the driver market.

The turnover rate for drivers at large truckload fleets rose four basis points from the first quarter's rate of
75%, pushing the rate to its highest point since the second quarter of 2008.

"Even though the increase was small, we still believe the market for quality drivers is getting extremely tight and fleets are aggressively recruiting to fill their openings," said ATA Chief Economist Bob Costello.

To read the full article CLICK HERE


American Trucking AssociationsImage via Wikipedia
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Broken record trucking commentary: "looming driver shortage"

A container truck. Cab-over design.Image via WikipediaIts a familiar theme: A trucking or trucker shortage is looming. Then you hear, trucker rates will rise. I am not all that surprised, are you. Companies constantly recruit new people to replace older drivers. The Federal Government is squeezing the life out of the potential driver, and your jammed on overcrowded roads with a society that has not accepted that everything you get...was probably delivered by truck. On top of this, the government, our government in lieu of a mandate that THEY HAVE TO cut billions from the economy, want to subsidize drivers from another nation so that they can take more trucking jobs.


What message do you think your sending to future drivers?

The only thing that I think is odd it that it took as long as it did to get to this point....
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Gas Reduction Strategies for Trucks

The push to save GAS

With fuel costs going way up everyone is scrambling to save money on their fleets and trucks. An article in Heavy Duty Trucking talks about some measures companies are using to do thisFuel Guage  

The biggest is the use of an onboard feedback system to tell the driver his or her performance on the road. The driver can then make changes with their driving techniques, uneccessary idling, and tractor speed.

Basically the modern truck driver is being trained on the spot how to drive with efficiency in mind. The Driver Feedback Systems are like low pressure mobile trainers. This simple on the spot training system can reduce fuel waste by as much as 24% though results vary.

Information adapted from: http://www.truckinginfo.com/news/news-detail.asp?news_id=74282&news_category_id=42



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Authorities investigate death of trucker left undiscovered for days

Authorities investigate death of trucker left undiscovered for days

Authorities in Ontario, OR, are investigating the death of truck driver who was discovered dead in his rig parked in a busy truck stop. The trucker, who authorities are still attempting to positively identify, had been dead for as long as 10 days before he was found.

The truck was parked, idling until it ran out of fuel, at the Love’s Truck Stop in Ontario. An employee of the truck stop called police on July 13 after finding the trucker dead in the cab of his truck. It is believed the man had been dead in the idling truck since July 4, according to Ontario Police Chief Mark Alexander, who said because of the heavy truck traffic at the truck stop, the man wasn’t noticed.



To read the full article click HERE

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Trucking earnings up despite soft economy

Trucking earnings up despite soft economy

Overall, carriers are reporting strong gains in revenues and earnings for the second quarter this year, with expectations that this trend should continue despite a softening of the U.S. economy.

“I would characterize the overall second quarter freight environment as a little choppy, but moving in an upward direction [while] pricing continued to be strong,” noted Henry Gerkens, chairman, president & CEO of Landstar System Inc., in the company’s quarterly earnings report.

Despite that “choppiness,” though, Landstar posted net income of $29.6 million on revenues of $675.6 million in the second quarter, compared to net income of $24.4 million on $541.7 million in revenues during the same period last year – contributing to a 27% jump in earnings per share, which Gerkens’ described as “the best second quarter earnings per share [62 cents] in Landstar history.”

He added that “recent trends in June, and thus far in July, indicate continued strength in revenue per load with a relatively stable increase in the number of loads hauled month over prior year month. I expect these trends to continue throughout the third quarter.”

To read the full article click Here
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Preventing truck and carhauling accidents

6/13/2011 Trucking Groups Call on NHTSA to Examine Truck Crashworthiness Standards

American Trucking Associations and the Owner Operator Independent Drivers Association together called on the federal government to begin researching standards for crashworthiness for heavy trucks.

"NHTSA has continuously developed crashworthiness standards for automobiles and light trucks, but to date has generally not applied crashworthiness standards to commercial trucks," the two groups wrote in a June 6 letter to David Strickland, head of the National Highway Traffic Safety Administration. "We believe there may be opportunities to enhance the survivability of professional truck drivers if appropriate, research-based, uniform standards are developed."

To read the full article click HERE
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Seal of the United States Department of Transp...Image via Wikipedia
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Backlash to FREE EOBR's for Mexican Truckers

 Even more backlash...

Seal of the United States Department of Transp...40 Congresspeople have already rallied to end this nightmare proposal. I dont see any political benefit to the current administration to keep it

Here is the original article from Transport Topics

Dump Mexican trucking proposal: Lawmakers

A group of 44 lawmakers delivered a signed letter to U.S. Secretary of Transportation Ray LaHood yesterday demanding that the Obama Administration abandon plans to restart a controversial cross-border trucking program for Mexican motor carriers.

To read the full article click HERE



From Transport Topics
3/23/2011Photo portrait of U.S. Senate Mark Pryor

Sen. Mark Pryor (D-Ark.) sent a letter to Transportation Secretary Ray LaHood outlining his opposition to the U.S. proposal to buy electronic onboard recorders for Mexican trucks that will travel within the United States.

“I do not believe this concept is fair for U.S. carriers who are not eligible for such payments,” Pryor wrote in a letter dated Thursday.

exotic tie down strap
A Department of Transportation official said earlier this month that DOT will pay for EOBRs for Mexican trucks entering the United States under an agreement with Mexico. The program is meant to ensure drivers’ compliance with hours-of-service regulations while in the U.S.




To read the full article click HERE

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Are bigger trucks the answer?

Business pushes Congress to clear bigger trucks




WASHINGTON | Tue May 3, 2011 2:24pm EDT
The United States Capitol in Washington, D.C.Image via Wikipedia 
(Reuters) - Manufacturers, retailers, and other businesses are quietly working with truckers in renewing a push for government permission to operate bigger and heavier rigs, to the dismay of unions and safety advocates.
Lobbying coalitions for hundreds of companies hope an improving economy will underscore the case that inefficiency associated with trucking capacity shortages and higher fuel expenses adds costs for shippers and consumers.

They are behind proposals taking shape in Congress to lift size restrictions. They also want to restore the flexibility of states to decide which trucks can operate on their roads.

Union and safety groups vocally oppose any change, saying bigger trucks would erode hard-won regulations and pose new hazards for truck drivers and other motorists just as U.S. traffic deaths are falling noticeably.
Also, smaller independent truckers say new size allowances would hurt their businesses by adding costs for equipment necessary to win business and compete with bigger rivals.

Randy Mullett, government relations vice president for trucking company Con-Way Inc, said business interests are working together on a range of changes in law that would affect regions and businesses differently.

"We don't want to run triples (trailers) through Washington, D.C., but we might want to in the cornfields of the Midwest," said Mullett, whose company is based in Michigan.

Mullett added the larger goal is to "find a way to make this part of the supply chain more efficient," especially with diesel fuel prices above $4 per gallon and other costs going up.

Shipping costs rose by almost 35 percent from 2004 through 2006, which translated into a 2 percent price increase for retail goods. A decrease during the subsequent economic downturn has been followed by an 8 percent shipping cost rise since 2009 due to capacity shortages, higher fuel prices and other factors, according to FTR Associates.

to read the full article click HERE
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The economic recovery is taking root...its a start

Commentary on " Positive Outlook for Trucking"

I think the recovery is taking root. No economy is perfect even in the greatest of boom times BUT steady signs of improvement are showing. As far as how this improvement is affecting truckers and carhaulers, the simple fact is goods have be shipped. Even after considerable damage was done to the economy in 2008 and 2009, life has gone on and food and services have to be delivered.

This alone is a stepping stone to a greater recovery.While there are challenges like high fuel costs, regulation fears , and driver shortages, they are surmountable challenges.The part of the economy that has survived the recession is growing again.
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All things considered..still signs of improvement for transportation and trucking

Positive Outlook for Trucking Industry Tempered by Rising Operating Expenses, Says GE Capital Survey

The sleeper berth is the area toward the rear ...IRVING, Texas--(BUSINESS WIRE)--Nearly three-quarters (71%) of trucking company executives surveyed by GE Capital, Transportation Finance expect business conditions to improve in 2011 but they are concerned about the impact of external and internal factors on their profit margins. The rising price of diesel, a nationwide shortage of drivers and the twin costs of complying with government regulations and maintaining their own aging fleets are all significant concerns.

For the original article click HERE


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Tire Business - U.S. truck orders hit 5-year high

From Tire Business.com
Staff Report

motor vehicles with permissible maximum weight...Image via Wikipedia
COLUMBUS, Ind. (April 7, 2011) — Orders for class 8 commercial vehicles in the U.S. more than doubled in March from a year ago to their highest level in nearly five years, according to preliminary data compiled by Americas Commercial Transportation Research Co. L.L.C. (ACT).

Net orders in March hit 29,200 units, ACT said, a gain of 159 percent from March 2010, putting the industry on a pace to exceed 300,000 units this year. Preliminary order numbers are subject to revision and are typically accurate to within 5 percent plus or minus, ACT added.

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“With the uptrend firmly established, the question for 2011 is now the industry’s ability to meet demand, instead of whether demand would rise to expectations,” said Kenny Vieth, ACT president and senior analyst. “History shows that production always chases demand at the beginning of the cycle. Unlike orders, the industry needs to work in unison to raise production.”

The growth in truck orders comes on top of higher demand for commercial trailers, ACT said.

To see the rest of the story click here


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Forecast: Capacity shortfall into 2013

From Overdrive online
February 10, 2011

A combination of the trucking industry trying to catch up with the economic recovery and adapting to government regulations that are still being developed will extend a capacity shortage through 2013, a trucking economist said at an online seminar Feb. 10.LONG BEACH, CA - SEPTEMBER 08:  A truck is dri...Image by Getty Images via @daylife

The shortfall will peak above 250,000 units in 2012 but continue at about 150,000 units in 2013, predicted Noel Perry, a senior consultant with FTR Associates and principal of Transportation Fundamentals. He said the industry is pursuing productivity increases through greater utilization of existing equipment, and miles per tractor were up more than 10 percent in 2010. Without that productivity improvement, “this crisis could be twice as bad, peaking at around 400,000 units,” he said.

Perry added that capacity utilization has recovered to above 90 percent, but rate increases haven’t kept pace. He said carriers are more productive and profitable, without increasing rates much. “From now on if a [carrier] wants to handle more freight, he is going to have to hire drivers and buy equipment,” he said.
To read the full article click HERE


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