Welcome back to Loaded and Rolling! This week’s newsletter features memes, gifs and other fun content from none other than Mary O’Connell, host of both Check Call and Running on Ice, Call it a special appearance in the world of enterprise trucking.
For those on the fence about registering for the Future of Freight Festival in Chattanooga, Tennessee this November, we have an amazing incentive to get you on the side to go. Subscribers to Loaded and Rolling get a discount on registration. Follow the link or use the code LRF324 at checkout and you can get a discount on your ticket – though I would book sooner rather than later as these codes are only good for a short time and you gotta get those plane tickets, too.
Truck driver training gets a huge payday
The federal government has released $3.5 million to 27 community colleges across the country to boost training for new and current truck drivers as well as military veterans. The grants were awarded by the Federal Motor Carrier Safety Administration’s Commercial Motor Vehicle Operator Safety Training (CMVOST) Grant Program.
FreightWaves’ John Gallager writes: “More than 50% of FMCSA’s annual budget provides funding for states to promote CMV safety, according to the agency, including through its CMVOST grant program, which was authorized by the Bipartisan Infrastructure Law. FMCSA also provides funding through other discretionary grant programs, such as the High Priority Grants Program and the Commercial Driver’s License Program Implementation Grant.”
Grant award winners get on average $130,000. This is an effort by the current administration to meet the demand for better-trained truck drivers and strengthen supply chains. The average age of truck drivers is 49 years old, and they are part of an aging workforce that needs more young people getting into the field.
Autonomous trucking faces a setback
TuSimple has agreed to a $189 million settlement after being accused of defrauding shareholders. Grace Sharkey’s article states, “The allegations against TuSimple stem from the period leading up to its April 2021 initial public offering, in which it raised $1.35 billion. Shareholders accused the company of exaggerating the safety of its technology, suggesting that its primary goal was to fine-tune the autonomous driving systems on U.S. roads before transferring the improved technology to Hydron in China.“
Some safety incidents in August 2022 highlighted concerns of employees and analysts that the company was rapidly pushing driverless trucks and risking public safety. Sharkey writes, “In January, TuSimple announced it would voluntarily delist from the Nasdaq and shut down most of its U.S. operations. This decision, coming just a few years after its IPO, signaled a strategic shift as TuSimple appeared to be concentrating its efforts on Asia, where it may see more favorable market conditions and fewer regulatory challenges.”
As autonomous trucks struggle to gain momentum in the U.S., this is another setback for those looking to make headway in the domestic market. As for driverless trucks going coast to coast, it might be a farther-off reality.
Market update: August becomes the month of hope
Motive has released its monthly economic report, and things are looking good for peak retail season. Retailers are making plans for an earlier retail season, with consumers expected to spend more than last year.
Throughout the summer, most economic indicators began trending in the positive direction. In June, the month-over-month jumps for retailer restocking jumped 10.6%. The increase isn’t uncommon for retailers in the summer; however, the sharp jump this year indicated retailers are expecting bigger summer sales.
When it comes to performance across sectors, year-over-year comparisons saw department stores, apparel and electronics up 32.9% and home improvement up 24.4% in June. Grocery and superstores and discount retailers and wholesalers jumped 22.1% and 13% y/y, respectively. There is solid momentum in brick-and-mortar retail as these stores anticipate a very strong summer peak season.
August is expected to bring some positivity back into the economic picture as retailers prep for early shopping and more nearshored facilities come online. It could bring the beginning of a recovering freight market.
FreightWaves SONAR spotlight: It’s not always bigger in Texas
Summary: Capacity is opening up in Dallas as both outbound tender volumes and outbound tender rejections have dropped. Outbound tender volumes are down 7.06% week over week while outbound tender rejections have dropped 114 basis points in the same period. The Outbound Tender Reject Index is sitting at 4.03%, which doesn’t indicate much pressure on the spot market as spot rates are about in line with contract rates, much to carriers’ disappointment. The one good thing is that shippers will be happier now than at the beginning of the month as carrier contract compliance has improved.
All eyes are still on Labor Day weekend. If rejection rates remain elevated after the long weekend, it’s a sign that the market has turned and Q4 could be a bit trickier than previously anticipated.
The Routing Guide: Links from around the web
When consumer spending on goods produces no freight
Liebherr, Fortescue reveal world’s first self-driving electric mining truck
Nearshoring volume boost a challenge as meth seizures rise at US borders