Education
How Dynamic Pricing is Transforming the Freight Market
As the U.S. freight market experiences a lull, shippers are looking for ways to cut costs while carriers aim to fill empty trailers. The solution? Dynamic pricing technology.
ABF Freight System, a subsidiary of ArcBest, managed to increase shipments and tonnage by 2% year-over-year in May, thanks to their dynamic pricing program. In contrast, many of their competitors saw a decline in shipments by high-single-digit percentages.
Even amidst a reduction in shipping volumes by larger customers, ABF’s program “has been effective in optimizing revenue and managing to more consistent business levels by filling available capacity in our network during this weaker economic environment,” as reported to the U.S. Securities and Exchange Commission by ArcBest. Discover how this innovative pricing strategy is transforming the U.S. LTL market.
“Profitable dynamic LTL-rates business drove shipment and tonnage growth, which was offset by lower demand from core accounts,” ArcBest said in the report.
Despite being around for years, dynamic pricing technology has faced resistance from larger companies moving high volumes of LTL freight.
“The size and scope of customers using dynamic pricing varies,” Dennis Anderson, ArcBest chief strategy officer, told the Journal of Commerce. “It really centers around how they route their freight. Shippers that make individual shipment routing decisions are most likely to be users of dynamic LTL pricing.”
“There are still a large number of shippers who prefer pre-negotiated or contracted pricing based on the way they procure LTL transportation,” Anderson said.
Logistics managers are under pressure to lower transportation costs after two years of high truckload and LTL rates and supply chain disruptions. This situation presents an opportunity for carriers to use dynamic pricing technology to keep their trailers running full and for shippers to find savings. LTL carriers can use dynamic pricing to fine-tune operations, particularly in lanes where they are light to optimize around bigger accounts.
Widespread adoption of APIs makes dynamic transactional pricing much easier. ABF increased shipments and tonnage, while other LTL carriers reported volume declines. However, contractual LTL rates are not falling, and core LTL-rated business prices, excluding fuel surcharges, increased in May according to ArcBest. Dynamic pricing is not solely driven by the market, according to Anderson.
“We built our dynamic pricing offering with economic ups and downs and the ever-present potential for unexpected supply chain disruptions in mind,” he said. “We implemented it prior to the pandemic, so we have seen usage of it in a wide range of market conditions.”
Technology is altering the way shippers approach purchasing transportation. Advancements in technology have enabled shippers to manage transportation more precisely, allowing them to evaluate specific pricing in particular lanes on particular days of the week.
“Dynamic LTL pricing enables us to better serve our customers who make individual shipment routing decisions while also profitably filling capacity,” Anderson said. “We’ll continue to listen to our customers and respond to their specific needs.”
Source: Journal of Commerce
Business
Diesel Price Drops 3.7¢ to $3.651 a Gallon
Summary:
The U.S. national average diesel price dropped by 3.7 cents to $3.651 per gallon, marking the seventh consecutive week of decline. Since mid-July, diesel prices have fallen by 21.4 cents. Year-over-year, the price is down by 82.4 cents, providing some relief to the trucking and logistics industries. The most significant drops occurred in the Rocky Mountain and West Coast less California subregions.
News for You
Diesel prices in the U.S. have continued to fall, with the national average dropping by 3.7 cents to $3.651 per gallon, according to the latest data from the Energy Information Administration (EIA). This marks the seventh week in a row that diesel prices have declined, with a total reduction of 21.4 cents since mid-July. Compared to this time last year, the price is down by 82.4 cents per gallon, offering some financial relief to the trucking and logistics industries that have been dealing with high fuel costs.
The biggest year-over-year decreases were seen in the Rocky Mountain region and the West Coast less California subregion, where prices fell by $1.05 and $1.08 per gallon, respectively.
Diesel prices fell across all ten regions tracked by the EIA, ranging from a decrease of 5 cents in New England to 1.3 cents in the West Coast less California subregion. Here’s a closer look at how prices changed in various regions:
- East Coast (PADD 1): Prices fell by 3.2 cents to $3.725 per gallon. New England saw the steepest drop in this region, with a 5-cent decrease to $3.969 per gallon.
- Midwest (PADD 2): This region recorded the largest decrease this week, with prices dropping by 4.7 cents to $3.627 per gallon.
- Gulf Coast (PADD 3): Known for having the lowest diesel prices in the country, this region saw a decrease of 3.8 cents, bringing the price to $3.317 per gallon.
- Rocky Mountain (PADD 4): Prices fell by 4.2 cents to $3.608 per gallon, maintaining relatively stable pricing compared to other regions.
- West Coast (PADD 5): The average price dropped by 2.2 cents to $4.272 per gallon, with California experiencing a 3.2-cent decline, bringing the price to $4.707 per gallon.
The ongoing decline in diesel prices is due to various factors, including decreased demand, stable crude oil prices, and seasonal changes in fuel consumption. These trends have eased some of the financial pressure on trucking companies and other businesses that rely heavily on diesel fuel.
How This Affects You: Truck Drivers
For truck drivers and those in the trucking industry, the recent drop in diesel prices is welcome news. Lower fuel costs mean reduced expenses for operators, especially owner-operators and small trucking businesses that are heavily impacted by fuel prices. Over the past two years, high diesel costs have been a significant challenge, so this decline can help improve profitability and reduce overall operating costs.
Additionally, the drop in diesel prices can make it more affordable for companies to maintain their fleets and could lead to lower transportation costs for goods. This might also positively impact the broader economy by helping to keep the cost of goods down, which is beneficial for consumers and businesses alike.
As a truck driver, staying updated on fuel price trends can help you plan your routes and fueling stops to maximize your savings. While fuel prices can be unpredictable, the current downward trend provides a bit of breathing room for the industry.
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#DieselPrices #TruckingIndustry #FuelCosts #DieselDrop #FuelEconomy #TruckingNews #Logistics #FuelRelief #EnergyInformationAdministration #TruckDrivers
Education
NFI partners with OJT program
Summary
NFI Industries has partnered with Will County’s On-The-Job Training (OJT) program to bring new drivers into the trucking industry. This partnership helps train individuals, especially those recently certified with a CDL, by offering a nine-week training course and financial support through federal grants. The program aims to improve job opportunities and has shown success in attracting and retaining drivers, including women through NFI’s SheDrives initiative.
News You Need
NFI Industries, a leading logistics company in North America, has teamed up with the On-The-Job Training (OJT) program in Will County, Illinois, to help recruit and train new truck drivers. Founded in 1932 by the Brown family, NFI is known for supporting its employees with various programs that promote work-life balance, financial planning, and overall well-being.
The OJT program offers reimbursements to local employers in Will County who aim to boost productivity, stay competitive, and create more job opportunities for the community. NFI uses this program to connect with individuals who have recently completed CDL (Commercial Driver’s License) training. Jen C., NFI’s driver recruiting program manager, explained that this partnership allows new drivers to gain experience through a nine-week training course at NFI, even if they have no prior experience.
By partnering with OJT, NFI not only finds new drivers but also benefits financially, as the program covers 50% of the training wages for the nine-week period. Candidates are carefully vetted by state and local agencies before being recommended to NFI, which helps ensure that the drivers are a good fit for the company. The retention rates for drivers coming through this program are higher compared to other student drivers.
Pamela R., who manages special projects for the Workforce Services Division of Will County, highlighted that the program is supported by a federal grant through the Workforce Innovation and Opportunity Act. This grant helps unemployed or underemployed individuals, whether they need to go back to school for training or find a job. For NFI, this means getting drivers who may need extra training, with the OJT program reimbursing the trainer’s wages during this period.
Pamela refers to the OJT as a “career scholarship” since it helps cover the costs of obtaining a CDL license. She explained that around 80% of participants in the OJT program aim to earn their CDL and drive for a living. The partnership with NFI has been highly successful, and participants appreciate the financial assistance in obtaining their CDL.
Additionally, NFI has launched the SheDrives program, which focuses on increasing female representation and support in the trucking industry. This initiative aims to change the perception of trucking as a male-dominated field and create more opportunities for women. The OJT program has seen an increase in female participants, with retention rates for women in the program reaching 100%.
Jen and Pamela both agree that the OJT program benefits NFI and the local community and hope that the partnership will continue to grow.
How This Affects You: Truck Drivers
If you are a truck driver or considering a career in trucking, NFI’s partnership with the OJT program could be a great opportunity. This collaboration offers new drivers, especially those fresh out of CDL training, a pathway to gain real-world experience with a reputable company. Through the nine-week training program, you can start your career without the need for prior experience, and you’ll receive support and guidance to help you succeed.
For women in trucking, the SheDrives initiative provides additional support and aims to make the industry more inclusive. This could be an excellent opportunity if you’re looking for a supportive work environment that values diversity and encourages women to excel in the field.
Overall, the partnership between NFI and the OJT program helps new drivers get started with financial support, quality training, and a higher chance of long-term success in the trucking industry.
Hashtags
#TruckDrivers #OJTProgram #CDLTraining #NFIIndustries #Logistics #WorkforceDevelopment #CareerOpportunities #SheDrives #TruckingIndustry #FemaleTruckers #JobTraining #FederalGrants #EmploymentSupport
DOT Compliance
NACFE and RMI Launch Run on Less – Messy Middle
The North America Council for Freight Efficiency (NACFE) and RMI have introduced their newest program, Run on Less – Messy Middle, aimed at enhancing sustainability measures in the heavy-duty trucking industry. This initiative specifically addresses the long-haul return-to-base and over-the-road operations, which, while constituting only 9% of total trucking activity, are responsible for an alarming 48% of emissions from heavy-duty vehicles, as detailed in a report by the National Renewable Energy Laboratory (NREL).
This latest chapter of the Run on Less series focuses on identifying and showcasing viable methods for decarbonizing this niche within the trucking sector. “Each Run has tried to mirror market issues,” says Mike Roeth, executive director at NACFE. “This Run is no different. We are calling it Run on Less – Messy Middle because today’s fleet managers have a variety of options when it comes to what will power their vehicles. While other market segments have proven to be a good fit for battery electric vehicles, we are still looking for the best solutions for the long-haul segment of the industry now and in the future.”
As the fifth event in the Run on Less initiative, which began in 2017 highlighting diesel truck fuel efficiency, this event shifts focus to Class 8 trucks with a gross vehicle weight over 33,001 pounds, whether in sleeper or day cab configurations. Approximately ten fleets will participate, experimenting with various technologies that include battery electric, hydrogen fuel cells, renewable natural gas, bio-diesel, and hybrid systems, along with energy efficiency enhancements tailored to each fuel type.
Roeth underscores the significance of this initiative, stating, “There is a great deal of work being done in the long-haul segment of the market to decarbonize it. This upcoming Run will give us the opportunity to showcase the realities of that market to help fleets make more informed decisions now and in the future about which powertrain options make the most sense for their Class 8 long-haul routes.”
The event is set for September 2025 and will feature NACFE’s pre-Run Bootcamp series, with metrics and dashboards available on the Run on Less website. Throughout the event, NACFE intends to share results and updates via social media platforms alongside blogs and videos, culminating in a detailed report due for publication in early 2026. “We are excited to begin vetting fleets to participate in the Run and to sign on sponsors to help underwrite the cost of the Run,” Roeth added. “All of us at NACFE and RMI are excited to be working on the fifth freight efficiency demonstration in the Run on Less series and look forward to bringing some clarity to the Messy Middle of long-haul trucking.”
Source: The Trucker
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