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Transportation Costs Dilemma

Transportation costs have increased at nearly double the inflation rate. This is forcing companies across the country to raise the cost of their products to consumers.Executives from multiple companies have said that they plan on raising prices, but would not say by how much. Increased economic growth, a shortage of drivers, reduced capacity, and higher fuel prices have driven up transportation costs. This will threaten retail prices on goods from everything from hamburger to underwear.

source:www.businessinsider.com

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New Truck Orders Are Setting Records

Class 8 truck orders were up 75% year-over-year in the month of December, 2017. Orders reached nearly 38,000 compared to 21,400 a year earlier. These numbers were the highest in 3 years. Experts believe that the spike in orders are due to a number of factors. The main reason is the anticipation of President Trump’s infrastructure bill, along with construction companies increased jobs in 2018. The Associated General Contractors of America expect demand for all types of general construction to increase. Orders have been on the rise for the last three months.

source:transport topics 

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December 16, 2017, Marks Wreaths Across America

On December 16, 2017, Christmas wreaths were laid on veteran’s graves in over 1000 cemeteries across the United States. All 50 states participated, as well as off-shore and National Cemeteries abroad. Over one million wreaths were delivered around the world. The ATA, American Trucking Association, and the Share the Road Highway Safety Program, led the convoy from Maine to Arlington National Cemetery, where they were met by thousands of volunteers. A large percentage of truck drivers are veterans. They stopped along the way at selected schools to teach students the value of our freedoms. Kudos to the trucking industry…never forget.source:www.dfwwreaths.com

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Mandated Electronic Logging Devices In Effect Today!

After years of much debate, the federal government mandated law of electronic logging devices goes into effect today, December 18, 2017. The law requires carriers to record drivers’ hours of service (HOS) electronically, rather than in paper logbooks. Proponents of the mandate say that the number one reason for the law is to make the trucking industry safer. Drivers that currently have been using Automatic Onboard Recording Devices (AOBRDs) have until December 16, 2019 to replace them with ELDs. If trucks that use paper logbooks operate without ELDs, law enforcement can place the vehicles out of service after April  1, 2018. Who is exempt? (1)  Shorthaul drivers that run under a 100 mile radius. (2) Drivers that run no more than 8 days in a 30 day period. (3) Trucks with engines manufactured before 2000. (4) Drivers of trucks rented for less than 8 days.( 5) Drivers where the truck being driven is the commodity being delivered.

 

source:TTNews

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January 1, 2018 DOT Mandates Drug Testing For Opiods

January 1, 2018 the Department of Transportation will be testing truck drivers for 4 additional synthetic opiods. The testing will include pre-employment and post-accident screening. The Medical Review Officer (MRO) will test for Hydrocodone, Hydromorphone, Oxymorphone, and Oxycodone. These synthetic opiods are to manage pain, but are highly addictive. It is a crisis in the United States, and the DOT is taking measures to help insure the safety of the public. The problem has many faces, but the biggest hurdle for the MROs is that these medications, in most cases,are  prescribed by a doctor. The MRO will have to make a determination that can affect the future of the driver. Excessive use can cause decreased reaction time and sleeplessness. There will be a fine line between legitimate pain management and drug abuse.

 

source:ttnews

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The ELD Debate

Analysts in the trucking industry believe that with the mandated ELDs, freight capacity will tighten, along with rising rates. Some say the rates will increase between 5-15%. Industry pricing analysts feel the most impact will on one day hauls of more than 450 miles. In some cases the trip will take a second day. That means that the back-haul will have to be rescheduled. The mandate will have other effects on the industry. Some say drivers will be asking for higher pay per mile because they will be driving fewer miles. It may also force some companies to ship by rail. However it shakes out, the bottom line is that it is going to effect the industry….some positive….some negative. Two things are for sure….it will level the playing field for all involved, and December 18 ,2017 citations will be written.

 

source:transport topics/trucker news

 

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Pilot Flying J Selling to Berkshire

By 2023, Berkshire Hathaway will become the majority shareholder of truck stop giant Pilot Flying J. With 750 locations, Warren Buffett’s investment company will own 80% of the stock. They have entered an agreement with the Haslam family to purchase 38.6 % of the stock now. In 2023, Berkshire will buy another 41.4 %, to control 80% of the stock. Pilot Flying J employs more than 27,000 people, and has an annual revenue of over $20 billion. CEO, Jimmy Haslam, also owns the NFL’s Cleveland Browns. His brother, William, is currently the governor of Tennessee.

Source:wikemedia commons/transport topics

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Railroads Banking on Intermodal Investments

Railroad companies in the United States and Canada are investing in intermodal projects all around North America. There seems to be focus on the smaller market freight hubs. For example, the port at Burns Harbor is spending nearly $20 million to upgrade connections between railroads, trucks, and ships. It is one of 10 projects funded by the U. S. Department of Transportation. The rail industry will also fund improvements to areas that need upgraded.source:transport topics

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Harvey Impacts U.S. Trucking

Hurricane Harvey has disrupted 10% of the trucking industry in the United States. Due to the already tight nature of the trucking environment, many loads will be left on docks across the country. Transportation officials will be tested to try to get loads picked up and delivered in a timely manner. As was with the results of Hurricane Katrina, this event will show significant pricing increases. The rates are expected to increase 7-10%…a small price to pay considering the death and destruction that Harvey has done.
source:www.trucknews.com

images: NPR

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2nd. Quarter Cargo Thefts

Just over $17 million of cargo was stolen in the United States during the second quarter of 2017. This was a significant decrease( $35 million in thefts) from the same period in the previous year. The most targeted commodity was food and beverage(52%). The top 5 states that had the most pilferage are California, Texas, Tennessee, Florida, and New Jersey. Law enforcement busted a few major crime rings in California that significantly affected this decrease. Hopefully, these numbers will continue to go down.

source:transport topics