Podcast interview: Trucking’s AI-driven future with Werner CIO Daragh Mahon
On Tuesday, FreightWaves interviewed Werner Chief Information Officer Daragh Mahon about the company’s recent partnership with Samsara, diving into how AI and updated legacy systems are transforming Werner’s 8,500-truck fleet.
This is part of a strategic effort by Werner to use technology and cloud computing improvements to grow the company to over $5 billion in the next few years.
Regarding the partnership with Samsara, The Wall Street Journal noted: “San Francisco-based Samsara’s AI cameras and cloud-based Internet-of-Things, or IoT, software allow Werner to detect road incidents based on signals such as harsh braking, and coach its over 10,000 professional truck drivers via audio warnings if the cameras pick up on risky driving behavior like speeding.”
We discuss how the Samsara technology is being integrated into Werner’s platform and also learn about product development from Mahon’s over 20 years of experience in IT.
You can view the entire episode here.
FTR Trucking Conditions improve a bit in November
FTR Transportation Intelligence’s recently released November update to its Trucking Conditions index (TCI) showed a slight improvement from the previous month but well below a positive environment. The TCI for November came in at -7.94 compared to October’s -11.16 reading, an improvement of 28%.
In the report, Avery Vise, VP of trucking at FTR, noted: “The outlook for trucking conditions has changed little, and we still do not forecast any positive readings for the Trucking Conditions Index until late 2024. The recent deceleration in consumer inflation certainly is a positive development, but we do not anticipate that it will lead to any meaningful increase in consumption. The industrial sector remains sluggish. Improved automotive output remains an upside possibility but only if vehicle sales improve and the supply chain remains stable. Slowing trucking job growth and carrier creation coupled with a surge in carrier failures likely mean the industry is starting to lose driver capacity.”
Vise added, “If so, market conditions for carriers might outperform our current outlook starting late this year as capacity could prove tighter than reflected in our forecast, potentially leading to stronger rates.”
Market update: DOE/EIA diesel price drops ahead of EU ban on Russian imports
A ban on European Union imports of Russian diesel beginning Feb. 5 are impacting futures markets and the price of diesel. But current diesel prices are still catching up to the futures downturn in prices from the end of 2022. The Department of Energy/Energy Information Administration average retail diesel price declined 2.5 cents from last week, settling at $4.524 a gallon.
FreightWaves’ John Kingston writes: “Most analysis of the Russian diesel ban sees an eventual reordering of supply lines. Russian diesel exports to the EU — which have been pegged by oil analytics firm Vortexa as 700,000 barrels a day this year, according to a Reuters report — will need to find new homes in other parts of the world. Those countries taking in higher or new supplies of Russian diesel would then take less from other suppliers or export more of their own diesel production.”
As it stands, Kingston notes that the spread between futures price and physical market prices will be important to watch in the coming weeks to determine the impact of the EU import ban.
FreightWaves SONAR spotlight: Contract rates shed holiday gains
Commentary courtesy of the Daily Watch, a newsletter for SONAR subscribers
Summary: In a sign of returning normalcy, van contract rates — which are reported on a two-week delay — have lost nearly all of their momentum gained in December. This trend is in direct opposition to 2022, when van contract rates continued to rise well into the new year, but is in line with the seasonality seen from 2018 to 2021. As of Jan. 4, van contract rates, which exclude fuel surcharges and other accessorials, are already down 1.85% from the week prior and down 4.2% from year-ago levels.
While the dip in van rates is seasonal, the current dip in reefer contract rates is anything but. On paper, it should be obvious that reefer demand grows in response to extreme weather, whether hot or cold. In years past, reefer contract rates grew at the beginning of the year before hitting a local peak in late January or February. In 2023, however, reefer contract rates are down 10.2% on a weekly basis, though they remain 7.55% above last year’s levels. Notwithstanding a winter storm headed for the Great Plains, mild January temperatures are still expected for the majority of the country in the coming weeks, which should further curb reefer demand.
The Routing Guide: Links from around the web
Driver compensation ‘huge factor’ in safety, FMCSA leader says (LandLine)
Logistics real estate rents to surge again in 2023 (FreightWaves)
Bank of America bullish on TL stocks as ‘truck demand near floor’ (FreightWaves)
Battery-electric’s trucking reality — parking shortage will ‘look a whole lot worse’ (OverDrive)
How do trucking medical examiners stay certified? (FreightWaves)
Trucking environment to soften in 2023: Mullen (Trucknews)
