Finance

Asian shippers are siding with the Notorious B.I.G.’s declaration of regional loyalty from the 1997 hit “Goin’ Back to Cali”: “If I got to choose a coast, I got to choose the East.” The expansion of the Panama Canal that doubled its capacity has started shifting freight to east coast ports, which have invested billions in dredging, construction, and equipment purchases to take advantage of the increased flow.

A Brazilian trucking startup, CargoX, has successfully secured $20 million in a Series C funding backed by banking behemoth Goldman Sachs, TechCrunch reports.

A push to increase detention pay has been gaining momentum in recent years in the U.S., yet detention remains a significant problem for carriers. Could the introduction of ELDs and blockchain eliminate that problem?

Fort Worth, Texas-based Apex Capital Corp, a freight factoring company serving small to medium-sized trucking companies, proudly announces its membership in the Blockchain in Trucking Alliance (BiTA).

An Ohio state legislator has introduced a bill that would require trucks operating in Ohio to have side guards to help protect pedestrians and bicyclists.

Millennials are tech-savvy more often than not, and providing them with tools that could ease the life of a trucking job could empower a lot more to join the system.

As the Chinese economy rises and more people in the world’s largest nation move into the middle class, the demand for foreign goods escalates. In response to domestic demand and pressure from the U.S. to lower the trade deficit, China is opening its doors to American beef.

Steadily rising global copper prices have spurred US production, up 21% since 2011. Although Chinese demand has softened somewhat, copper from mines in the Southwest should flow into Texas, Florida, and California as they rebuild from natural disasters.

For the first time since DAT began reporting its data in the current format, the monthly spot rate has exceeded the contract rate at the same time in all three modes.  And the latest DAT Trucking Freight Barometers are continuing to signal that the ‘fall surge’ is happening for the first time since 2007.  Now is a good time to have secured capacity and a bad time to be locked into contract rates.

The U.S. has its first electrified highway. While not a long stretch, the one-mile catenary system on the north- and south-bound lanes of South Alameda Street from East Lomita Boulevard to the Dominguez Channel in Carson, CA, are providing a proving ground for the technology.

The merger of Knight Transportation and Swift Transportation may be the transportation highlight for the year, but there has plenty more activity revolving around mergers and acquisitions (M&A) in 2017, with no letup in sight.

If the Trump administration wants to push through a massive infrastructure bill, the only viable way to do that is to raise the federal fuel tax. That is the conclusion of an American Transportation Research Institute (ATRI) report entitled “A Framework for Infrastructure Funding.”

A one-day brake enforcement inspection by the Commercial Vehicle Safety Alliance resulted in 14% of commercial vehicles in the U.S. and Canada being placed out of service for brake violations. A full 22% of vehicles were placed out of service for some kind of violation, CVSA said.

A combination of slowing economic growth, burdensome tax policy, and weak infrastructure is crippling Brazil’s transportation and logistics industries. 

Fuel theft and fuel card abuse is a constant problem, but finding $300 worth of abuse on a $5,000 monthly fuel bill is not easy. That’s where Fueloyal believes it can help.

In the early days of trailer tracking, companies were simply looking for missing trailers. But technology has advanced, and trailer tracking is trying to keep pace. Now, the data generated by trailers can rival that of tractors, and properly managing that data could generate more revenue potential for carriers than ever before.

The Republican tax plan has officially been unveiled, and it includes a permanent corporate tax rate cut from 35% to 20%. The $1.5 trillion plan also includes the shrinking of the number of tax brackets to just four and eliminates the alternative minimum tax. It does not change the pretax treatment of 401K plans, as had been discussed previously.

The more individuals participating in a marketplace, and the more money that is being transacted in that marketplace, the more predictive that marketplace becomes. That’s why trucking remains one of the best indicators of economic activity. Here is what the weekly DAT Barometers for dry van, reefer, and flatbed are saying.

The Alliance for Driver Safety & Security, aka the Trucking Alliance, has adopted four technologies that the AAA Foundation for Traffic Safety says is critical to reducing large truck crashes.

Former Tesla shareholder Daimler seems intent on upstaging the upstart with its own electric truck program, reports Bloomberg. Weeks before Tesla is set to unveil its own electric vehicle, Daimler introduced its own model, the E-Fuso Vision One.

Even with rates rising – both contract and spot – and capacity tightening, attracting drivers still remain a primary concern for fleets. Driver pay is increasing, but outside influences are still hurting the recruitment efforts.

FTR’s Shippers Conditions Index (SCI) took a tumble in August, the firm said, dropping to a negative 6.7 reading. Most of the decline was due to the short-term fuel cost increases because of disruptions due to Hurricane Harvey.

Californians are about to see huge increases in the fuel taxes they pay at the pump. California’s Road Repair and Accountability Act of 2017, was signed into law by Gov. Jerry Brown (D) in April and will begin taking effect this Wednesday with a 12 cent jump in the gasoline base excise tax and a 20 cent spike in the diesel fuel base excise tax.

One of the largest financial exchanges in the world has partnered with DAT and Chattanooga-based TransRisk to launch a futures contract based on trucking spot rates. The venture brings together the benchmark pricing index with one of the largest financial exchanges in the world. 

Founded with the purpose of addressing volatility for brokers, carriers and shippers in major shipping lanes through risk-management solutions, TransRisk is one step closer to doing just that. The company, along with DAT Solutions and Nodal Exchange jointly announced an agreement to develop, market and list the first and only trucking freight futures and options on futures contracts.

For the past 15 years, if a carrier needed some assistance getting over a rough time financially, there has been help available from lenders who specialize in transportation finance. One of those companies is Marquette Transportation Finance, which just surpassed a milestone of sorts: It’s lent more than $15 billion to companies large and small.

McKinsey & Company has issued a landmark report predicting sweeping changes amid steady growth in the container shipping industry over the next 50 years.

There were a number of companies that presented new and updated products this past week at the American Trucking Associations’ MCE 2017 conference in Orlando, FL. Here is a rundown of some of those products.

In the future, trailer pools may no longer be the domain of truck large truckload fleets. Could they disrupt the LTL market as well and might brokers and 3PLs be able to take advantage?

We need NAFTA. That was the general consensus from Bob Costello and Derek Leathers on Sunday during a general industry update session at the American Trucking Associations’ MCE 2017 conference in Orlando.

The driver shortage has surged to the most important issue facing the industry, according to the latest top ten critical issues survey, the American Transportation Research Institute (ATRI), said.

The annual State of the Industry address at the American Trucking Associations’ MCE conference is a time for the president to highlight all that is good about trucking. Delivering his second address as president, Chris Spear noted some of the legislative accomplishments of the association, took aim at some of the industry’s critics, and called for unity.

Delivering a speech that was warmly welcomed by attendees, Secretary of Labor Alex Acosta said the Trump Administration was removing barriers to getting work done and improving healthcare for Americans in general, but for the trucking industry specifically.

The driver shortage is increasing, according to Bob Costello, chief economist of the American Trucking Associations, but it’s not as bad as many people believe.

International announced it has created a 24/7 center to manage customer support to help speed the time it takes to get vehicles back on the road.

Many fleets are devoting 10% of their operating budgets to maintenance, but it doesn’t have to be that high, suggests Jim Buell, EVP of sales & marketing for FleetNet America. “If you talk to most people, they think maintenance costs are like death and taxes, you can’t do anything about it,”

Some of the most prominent stakeholders in Canada voiced their concerns over NAFTA at an event organized by the Truckload Carriers’ Association (TCA) entitled “Bridging Border Barriers.”

A jury has awarded $15.57 million to Isaac Espinoza, who was struck by a tractor-trailer driven independent contractor Ricky Hatfield while assisting a friend on the side of I-81 north. The jury also held the broker who contracted with Hatfield partially responsible.

Blockchain offers a number of opportunities within freight management to improve cash flow. Pay per mile insurance coverage is one new concept, but that same philosophy can be applied to vehicle leases, perhaps changing the way fleets pay for their vehicles.

Driver costs are the highest cost for fleets, surpassing fuel for the second year in a row, according to data from the American Transportation Research Institute.

CargoNet, a Verisk Analytics company specializing in averting cargo theft, has launched a new app to boost its theft risk identifying properties according to a Verisk press release. The company’s RouteSearch app is available to registered CargoNet members only at this time.

FreightWaves has launched a new career website for professionals in the logistics and transportation space. Available at FW.careers, the site is designed for those looking for executive-level positions and for the companies looking to hire the best talent.

Celadon Group has announced the appointment of Thom Albrecht as executive vice president – chief financial and strategy officer. Albrecht is president of consulting firm Sword & Sea Transport and a member of the TransRisk Board of Advisors.

Used-truck prices are down slightly this year and some fleets looking to trade in their vehicles may be finding the residual value they expected to get when they acquired these trucks in 2013/14 are just not there right now.

On Wednesday night, President Donald Trump talked about his administration’s tax plan at an event at an airport hanger on the Pennsylvania Air National Guard base in Harrisburg, PA. Here is the official, unedited transcript of the speech provided by the White House:

President Donald Trump took his case for tax reform to the American people on Wednesday night – specifically the trucking community – at an event in Harrisburg, PA.

Until Hurricane Maria slammed into Puerto Rico, few people had ever heard of the Jones Act. Now, armed with a basic knowledge, many are wondering if the Jones Act is actually harming the U.S. and whether lifting it might benefit shipping and logistics in this country.

While legislative wheels are starting to turn, there is little reason to expect major movement on any infrastructure bill in 2017. The most optimistic timelines being floated on Capitol Hill call for the law to be signed in 2018, with funds released in 2020.

The world is going electric, and according to a McKinsey Energy Insights report, it is leaving the U.S. behind. According to the report authored by Chrsiter Tryggestand, Namit Sharma, Jasper van de Staaij and Arjan Keizer, because of market dynamics, the U.S. and China are lagging in the development and cost parity needed to make electric trucks viable.

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (the Update). The Update represents the first comprehensive overhaul in lease accounting in approximately 40 years.

Spot rates continue to climb and capacity continues to shrink, and now experts are predicting a strong holiday retail season. Could the good news for carriers get any better?

Amazon is now testing a delivery service that would make more products available for two-day shipping. Called Seller Flex, the service would apply to items purchased from third parties through Amazon’s e-commerce site. 

All week at the North American Commercial Vehicle Show in Atlanta, nearly every presenter has mentioned electric trucks and the growing electrification of the trucking industry. So, it was no surprise when solar company eNow noted how it too could help with these growing electric needs.

Ryder System will install automatic tire inflation systems on its vehicles through an agreement with Aperia Technologies. Aperia’s Halo Tire Inflators will be included as a standard spec on Ryder’s heavy-duty rental fleet.

John Larkin and the team at Stifel go super bullish on the truckload sector after spending weeks on the road gaining market insights to just how hot the market has become. 

With 34% of all tires still running underinflated in fleets, according to Continental, more solutions are needed. That’s why the tire maker has introduced a new, simple-to-use digital tire monitoring platform this week at the North American Commercial Vehicle show in Atlanta.

As tax reform hits Washington, truckers weigh in on the importance of tax reform that is simple and rewards domestic investment. 

In a quest for more business in China’s booming e-commerce markets, parcel companies in that country are waging a pricing war, threatening to eat up profits and pressuring margins for companies already facing razor-thin operating budgets, according to a report in the Nikkei Asian Review.   

The momentum in both contract and spot rate increases should feel like a rocket ship. For the first time in years, fleets will enjoy pricing power 

The myth of the 10-mpg truck has been proven wrong thanks to a group of seven drivers with seven differently equipped tractor-trailers driving for seven different companies.

The Fed announced today that it will allow $10 billion of Treasury and mortgage-backed securities to mature each month without buying new ones as it cautiously approaches the wind down to avoid another financial collapse.

Truck tonnage rose in August and driver turnover jumped in the second quarter according to the latest data from the American Trucking Associations.

The East Coast could see two back-to-back hurricanes hit over the next ten days. With an already-steteched national supply-chain, it will test our logistics infrastructure. 

The trucking industry, working in partnership with major retailers and consumer package goods companies respond to the recent devastation by delivering much needed relief supplies. 

The numbers are startling: 250,000 U.S. drivers fall asleep at the wheel each day; 83,000 drowsy-driving related crashes occurred between 2005 and 2009, and there is a drowsy-driving related crash every 25 seconds. For trucking companies, the costs can be staggering.

As Hurricane Irma continues to move through the Southeast, some of its impacts are now being assessed, and they are likely to disrupt operations for many for days and weeks to come.

A natural disaster can rarely be called a benefit, but there are positives for the transportation industry and its investors from the double hit the nation took from Hurricanes Harvey and Irma. From higher stock prices to higher rates, trucking may be poised to reap many benefits from the storms.

Warehouse facilities are a key component for logistic operations and managing the warehouse efficiently can have a noticeable impact on the bottom line. Reining in electricity costs, though, remains difficult. That’s why warehouse operators need options.

The U.S. House of Representatives defeated an amendment late Wednesday that would have restricted funding for the ELD mandate until at least Sept. 30, 2018. The amendment was added to an appropriations bill by Rep. Brian Babin (R-TX).

An already robust spot truckload freight market is now reacting to the effects of Hurricane Harvey, and with Irma on the horizon and wild fires burning out west, is now showing few signs of slowing down.

As larger items such as appliances and furniture are increasingly being purchased online, the need for more “white glove” delivery services is leading carriers to look at acquiring or partnering with companies that specialize in this area.

Hurricane Irma intensified overnight and is now a Category 5 hurricane in the Atlantic on a possible course for the East Coast of the United States. According to Riskpulse, interests along the East Coast, particularly Florida, should be closely monitoring the storm for potential impacts by this weekend.

Urbanization has been a constant since industrialization, but with the technology innovations of the past thirty years- that is changing. 

Amazon wasted no time in starting a pricing war in the grocery business. Like the book retailers and other categories that Amazon has entered- they have proven that this strategy builds consumer loyalty and lays to waste the competitors that dominate those markets 

Grain supplies have been trending up in the U.S. as prices have remained relatively stable, causing farmers to hold onto their crops longer hoping for a boost in prices. Hurricane Harvey, though, is making the situation worse as grain exports have nearly stopped.

TransRisk, a pioneer of solutions designed to allow transportation industry participants to efficiently manage price risk in the North American freight transportation market, has added nationally recognized transportation markets leader Donald Broughton to its team.

There remains plenty of industrial activity to support continued strength for the general economy and freight demand in particular, says Jonathan Starks of FTR, in the firm’s August market analysis.

The Shippers Conditions Index has improved slightly in August, although it remains in negative territory, according to the latest update from FTR. At the same time, DAT reported a decline in capacity last week on the spot market, which occurred before Hurricane Harvey struck Texas.

Harvey is the kerosene to accelerate the trends towards a major capacity crunch in the truckload industry. With as much as ten percent of capacity being impacted, combined with surpluss demand coming from relief and rebuilding- the truckload market capacity is expected to be super tight 

Cummins has unveiled a Class 7 electric powertrain that will power Class 7 trucks by 2019 and could recharge in as little as 20 minutes.

Convey, a supply chain visibility and communication company, has secured $8.25 million in Series B funding from Techstars Venture Capital Fund, RPM Ventures, and other investors in a round of funding just announced.

As Texans come to grip with the impact of Harvey on their lives- we examine the impact of the storm on the freight markets. Harvey relief demand is expected to be enormous and will likely dwarf the truckloads sent to help in Katrina efforts. 

As efforts to delay implementation of the electronic logging device rule continue to flounder in Congress, opponents have received an olive branch from CVSA. The group says that while it will enforce the ELD mandate on Dec. 18 as planned, out-of-service orders will not be issued until April 1, 2018.

While recovery efforts are still ongoing in many areas, the nation as a whole is about to feel the impact of Hurricane Harvey through increased fuel prices.

Once revered as one of the top trucking companies in the nation, Celadon Group has hit a rough patch in 2017. But there is a new leader with a new vision, and that’s to make Celadon a top carrier once again.

Even as the industry steps up to help, dedicating thousands of trucks and millions of cubic feet of capacity to relief efforts, an analysis from FTR says that approximately 7% of the industry has been affected already and some of that will be affected for weeks.

The new Uber CEO has his work cut out for him. Few know what his take on Uber Freight is and whether the aggressive expansion will continue. Regardless, the digital freight era is upon-us and should they leave the market, others will take its place. 

While the third quarter may be a slow time for contract renewals between carriers and shippers, a few deals have been done so far and the early indications are contract rates are heading up.

Uber selects Expedia CEO as its next CEO to replace founder Travis Kalanick

While Harvey may no longer be a hurricane, its flooding rains are expected to continue for days, causing major disruptions to travel and shipments in the state.

With consumers buying more online and more based on promotions, it has become less about brand loyalty and more about the benefits earned from digital purchases. All that is left is for shipping companies to provide app-assisted delivery.

The Federal Motor Carrier Safety Administration has suspended certain commercial regulations in Texas and Louisiana, including hours of service, for drivers providing “direct assistance” for hurricane relief under regulation 49 CFR 390.5.

The time has arrived as the Texas coast braces for the nation’s first major hurricane landfall in 12 years. Hurricane Harvey was upgraded this afternoon to a Category 3 hurricane with winds of 125 mph. According to Riskpulse, the forecast track has remained consistent, with landfall later tonight near central Texas.

After Hurricane Harvey departs Texas, the area will likely be in need of relief supplies. Trucks will haul those supplies. but how are the logistics of moving relief supplies handled? Someone who was involved in that process explains. 

At a cost of $4 billion, the new Tappan Zee Bridge has officially opened in New York City. Technically, one span of the bridge – four lanes open to westbound traffic – opens tonight with the second span scheduled to open in the spring.

Singapore might be world’s smartest city. When you think of tech, you reflexively picture Silicon Valley. While Palo Alto may reign in the west, a tiny island nation of 5.6 million leads the east… and it’s turning to blockchain.

The New York Shipping Exchange (NYSHEX) has secured a Series A round of funding for $13 million, according to a press release. The company has developed the first digital forward freight contract for global container shipping.

The National Hurricane Center has seen rapid intensification of Hurricane Harvey today and is now expecting the storm to gather strength before it makes landfall in Texas late Friday/early Saturday morning. The trucking interests are watching the storm closely as its final path and impacts will influence area spot rates, capacity, and fuel costs.

As predicted, the remnants of Tropical Storm Harvey have reformed into a Tropical Depression in the Gulf of Mexico. According to supply chain risk analytics firm Riskpulse, it is now likely that Harvey will make landfall on the south-central Texas coastline, perhaps near Corpus Christi, as a hurricane.

Nearly 30% of carriers are not yet in full compliance with the upcoming electronic logging device mandate and 15% said they will not be fully compliant at the deadline, according to the latest Morgan Stanley ELD survey.