News
January Tonnage Numbers See 1.5% Year-Over-Year Increase
The trucking industry plays a vital role in the U.S. economy, transporting goods and products across the country. The American Trucking Association (ATA) releases monthly reports on truck tonnage, the measure of the weight of goods transported by trucks. According to the latest report, truck tonnage increased by 1.5% in January 2022 compared to the same period last year.
“Tonnage has increased nicely in the last couple of months,” ATA Chief Economist Bob Costello said in a Feb. 21 news release. “I suspect that some of the gain is attributable to capacity coming out of the network, especially those carriers that primarily operate in the spot market and/or bought expensive used equipment in the last couple of years.”
“This would push more freight to contract carriers, which dominate this index,” Costello continued. “It could also be that freight bottomed and is coming up a little, too. So, the gain is likely a little higher demand and a little less supply.”
The index, which uses 2015 as a benchmark of 100, saw a modest increase in January 2023 at 117.1 compared to December 2022’s 116.2 reading and January 2022’s 115.3 record figure – demonstrating slow but steady growth in the months since.
The January year-over-year gain marked the index’s 17th consecutive annual increase. Despite the modest gains in December 2022 and January 2023, tonnage is off 1.4% from a high in September 2022.
At this month’s Recruitment & Retention Conference, Costello predicted that although a mild recession might be on the horizon for 2023 in America, he is optimistic about how resiliently and strongly the freight industry will stand against it.
ATA calculates its monthly tonnage index based on surveys from its membership, and has been doing so since the 1970s.
The Logistics Managers Index which also closely follows the trucking, freight, warehouse, and transportation industries, declined in January 2023 when measured against 2022’s strong number during the pandemic, but increased from December 2022.
January’s LMI of 57.6, while higher than December’s 54.6, was down from the 2022 figure of 71.9. This marks the number’s second consecutive overall increase. The authors of the index noted that back-to-back rates of growth are notable as they come after a run of seven or eight months of declining growth.
The economists charged with compiling the LMI believe the economy is still strong.
“The big U.S. economic news in January was the 517,000 jobs that were added. This came a surprise to some given the high-profile rounds of layoffs occurring at places like Microsoft and FedEx,” Dale Rogers, professor of business at Arizona State University, said in the report. “The losses in tech were more than made up for by gains in other areas — including the transportation and warehousing sectors, which added 23,000 workers in January.”
“The Fed hinted that by slowing down the pace of rate increases they will give the economy time to catch up to the corrections they have already attempted to install,” Rogers said, “thereby avoiding the dreaded overcorrection. Much of the decrease in inflation is due to falling prices in products like food, energy and housing, all of which are particularly impactful to consumers.”
Each month the Council of Supply Chain Management Professionals works in conjunction with researchers at Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada-Reno to craft the LMI report to signify if things are looking up or on their way down in the industry. Any read of the LIM calculated above 50 indicates the logistics sector is expanding while anything below 50 indicates a contraction.
Despite some economists’ fears of a possible recession, DAT Analytics based in Beaverton, Oregon reports that its DAT Truckload Volume Index hit new high in January, confirming that trucking is still continuing to grow.
According to DAT, van freight’s Truckload Volume Index (TVI) is 2.8% higher than what it was in December 2022; it is also up 2.8% on the year-over-year scale. Meanwhile, the refrigerated TVI was 3% higher than in December 2022 with an even larger jump of 3.6 % year-over-year. Flatbeds saw double digit gains at increase of 10.7% from December 2022, outpacing all other categories by far and climbing 12.4% year-over-year.
“Volatility gave way to seasonality last month,” DAT Chief of Analytics Ken Adamo said. “After a gangbusters January last year, truckload rates followed a more typical pattern and volumes were remarkably steady this year.”
DAT said their TVI, which illustrates the number of freight loads moved each month, normalized so new data sources can be incorporated without distortion. The index had its baseline set at 100 for January 2015 and since then has been used to gauge changes in truck shipping activity over time.
U.S. Bank’s latest Freight Payment Index reported the steepest year-over-year plunge in truck shipments since 2020, with freight volume during peak shipping season dropping significantly in the fourth quarter of 2022.
The index showed that Q4 truck freight shipments contracted 7.1% year-over-year. That’s the largest drop since Q3 2020 and is down 4.6% compared with the third quarter of 2022.
The slowdown was driven by a significant contraction in the West, where volumes dropped 8.9% year-over-year and 10.6% compared with the third quarter of 2022.
Source: ttnews
Supply Chain Turmoil Hits Drivers as Costs and Shortages Persist
“Due to the exorbitant cost of shipping, we have had to raise prices to our customers as well as order eight months’ worth of inventory, eight months in advance.” — Hanna from The Crown Choice
The anticipated recovery year turned into ongoing supply chain disruptions, with raw material shortages and factories in China operating on limited schedules. The cost of shipping containers has skyrocketed, impacting small businesses and their ability to order inventory effectively.
What This Means for Your Wallet and Your Miles
Shipping costs are at an all-time high, which could mean higher operating costs for you as a driver. If you’re hauling goods for small businesses, expect them to pass these costs along in the form of higher order rates or delayed payments.
Fuel costs are also likely to be affected as ripple effects from supply chain disruptions impact pricing. Keep an eye on fuel surcharges and budget accordingly to avoid surprises in your expense sheet.
If you’re relying on contracts with big retailers, be prepared for potential delays. Mass retailers are struggling with empty shelves, which might lead to fewer loads as they adjust to the new normal.
Load availability may shift as businesses look to diversify their supplier base. Stay flexible and ready to adjust your routes based on changing demand and supply scenarios.
How are shipping costs affecting my job?
High shipping costs are driving businesses to increase prices, which may lead to fewer shipments or altered contracts. Be prepared to adjust to these changes.
Will this affect fuel prices?
Yes, supply chain disruptions can influence fuel prices, so keep an eye on trends and potential surcharges that may affect your operating costs.
What about load availability?
Load availability could fluctuate as businesses adjust their supply chains. Flexibility in routes and contracts will be crucial to maintaining steady work.
How can I prepare for potential delays?
Keep in close contact with your logistics partners and clients. Understanding their challenges can help you anticipate delays and adjust your schedule accordingly.
Is there anything I can do to mitigate these costs?
Consider renegotiating rates and contracts to account for increased costs, and explore new markets and clients who may offer more stable opportunities.
Key Strategies for Effective Remote Worker Time Management
Remote work has become increasingly popular in recent years, thanks to technological advancements and changing attitudes towards work-life balance.
The article discusses various strategies and tools to enhance time management for remote workers. It covers setting expectations, choosing appropriate time tracking tools, and maintaining accountability to improve productivity in a remote work environment.
What This Means for Your Wallet and Your Miles
For drivers who also manage remote workers or work remotely themselves, the right time tracking tools can streamline operations and improve productivity. This could potentially reduce overhead costs and increase efficiency.
Setting clear expectations regarding availability and communication can help avoid misunderstandings and reduce downtime, ensuring you stay on top of your tasks and deadlines.
Establishing a routine can help you make the most of your work hours, allowing more time for driving or managing logistics without affecting performance.
Regularly reviewing and adjusting your time management practices can help identify inefficiencies, allowing you to make changes that enhance productivity and ensure a steady flow of income.
How can I improve time management for my remote workers?
Set clear expectations for work hours and communication, use effective time tracking tools, and establish routines to optimize productivity.
What are some recommended time tracking tools?
Popular options include Toggl, BuddyPunch, RescueTime, and Harvest, each offering different features suited to various needs.
How often should I review my time tracking practices?
Regular reviews, ideally monthly, can help identify areas for improvement and ensure your practices remain effective and aligned with goals.
Why is accountability important in remote work?
Accountability helps maintain productivity and motivation, ensuring that tasks are completed efficiently and on time.
What should I do if my current routine isn’t working?
Be flexible and willing to adjust your routine or try new tools and strategies to find a setup that maximizes productivity and fits your work style.
An Illinois-based trucker, Moath Musamih, from Orland Park, has been formally indicted in Ohio on grand theft charges for allegedly avoiding nearly $22,000 in turnpike tolls. The indictment, filed on April 21 by a Williams County grand jury, accuses Musamih of a fourth-degree felony relating to unpaid tolls, with potential penalties including up to 18 months imprisonment, a $5,000 fine, and restitution.
Prosecutors assert that Musamih’s truck was monitored with open-road tolling technology for close to two years. Despite receiving multiple payment notifications, the tolls remained unpaid. The indictment also includes a clause to confiscate the 2012 Freightliner Cascadia allegedly used in these offenses.
County Chief Investigator Andrew Skiles noted that the Ohio State Highway Patrol had been keeping tabs on Musamih for some time due to the unpaid tolls. According to Skiles, Musamih is an owner-operator whose vehicle, reportedly registered under his wife’s name, was regularly tracked traveling extensive distances on the Ohio Turnpike using an E-ZPass transponder.
An Ohio State Highway Patrol officer encountered Musamih at a service plaza on eastbound Interstate 80, where an incident report was filed for “Theft by Deception.” The report included accusations of theft without consent and engaging in corrupt activities.
Williams County Prosecutor Katherine Zartman opted for criminal proceedings against Musamih due to the significant total of approximately $21,991 in unpaid tolls over an extensive period from April 2024 to April 2026. The decision to pursue a fourth-degree felony charge was influenced by Musamih’s alleged repeated offenses and the proposed forfeiture of his semi-truck as it was deemed contraband linked to the criminal activity.
The Ohio Turnpike and Infrastructure Commission, through its advanced open-road tolling system launched in April 2024, identified Musamih. Executive Director Ferzan Ahmed emphasized the aim to maintain optimal conditions on the turnpike while highlighting the challenges posed by companies that fail to settle their toll liabilities, despite numerous reminders and collection attempts.
In a broader context, the commission recently disclosed a list of 315 trucking companies accused of evading $5.2 million in tolls over the past two years, indicating a widespread issue with rogue operators.
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