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.

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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

Summary:
Midwest Transport Inc. (MTI), a trucking company based in Illinois and contracted with the U.S. Postal Service, is closing down. Over 650 employees, including more than 480 drivers, were notified of the shutdown without a formal explanation. MTI, founded in 1980, had key terminals across several states and a fleet of 428 trucks. Safety inspections revealed a higher-than-average out-of-service rate for their trucks, and the company had recent compliance reviews but did not officially announce the closure in any states where it operated.

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Midwest Transport Inc. (MTI), a trucking company based in Robinson, Illinois, and a major contractor for the U.S. Postal Service, is shutting down its operations, affecting over 650 employees, including more than 480 truck drivers. Employees were informed of the closure through phone calls from regional managers, but MTI has not issued a public statement explaining the reasons behind the decision.

An email obtained by FreightWaves indicated that MTI plans to complete all scheduled postal trips by Sunday, September 8, and that drivers should follow instructions from their load planners. Terminal and office staff were told they would receive updates as the company progresses through the shutdown.

Founded in 1980, MTI operated several key terminals in locations including Greenup, Illinois; Harmony, Pennsylvania; Memphis, Tennessee; and Tampa and Jacksonville, Florida. The company had a fleet of 428 trucks and 480 drivers, as reported by the Federal Motor Carrier Safety Administration (FMCSA). Over the past 24 months, MTI’s trucks were inspected 244 times, with 65 trucks being placed out of service, resulting in a 27% out-of-service rate, which is higher than the industry average of 22%.

However, the drivers themselves had a better record, with 564 inspections and only 16 drivers being placed out of service, resulting in a nearly 3% out-of-service rate, which is significantly lower than the industry average of 7%. Despite these statistics, MTI had reported 21 injuries and 42 vehicles needing to be towed over the past two years.

The FMCSA’s SAFER database indicated that MTI was cited for violations related to controlled substances, alcohol, and driver fitness. The company underwent two compliance reviews in July but still had active operating authorities at the time of the closure announcement.

A former MTI driver expressed surprise over the closure, noting that despite ongoing postal contracts across the U.S., there had been recent pushes from the company for drivers to certify their log books, watch their speed, and improve on-time performance. The driver speculated that even the U.S. Postal Service might be unaware of the sudden shutdown, potentially leaving mail undelivered on Monday.

A spokesperson for the U.S. Postal Service did not respond to requests for comments on the closure.

How This Affects You: Truck Drivers

For truck drivers, the sudden closure of MTI highlights the instability that can exist in the industry, even with long-standing companies. If you were a driver at MTI, this abrupt shutdown means an immediate loss of employment and potential challenges in quickly finding a new job, especially with specialized contracts like those with the U.S. Postal Service. Drivers who were part of MTI had been performing well compared to industry averages, so maintaining a good driving record and being proactive about certifications and safety practices can help in finding new opportunities.

For those still working in trucking, it’s important to keep an eye on your company’s financial health and operational practices. Understanding the importance of compliance and safety standards is crucial, as these can be indicators of a company’s overall stability. Always be prepared for changes in the industry by keeping your skills updated and staying informed about the companies you work for.

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#TruckingIndustry #MTIClosure #MidwestTransport #TruckDrivers #PostalService #Logistics #TruckingSafety #JobLoss #ComplianceIssues #USPSContracts #FreightNews

Summary:
The American Trucking Associations (ATA) reported a 0.3% increase in its For-Hire Truck Tonnage Index from June to July, reaching 113.7. However, this was still 0.9% lower than July 2023. The increase is partly due to strong import activity at West Coast ports and slight growth in retail sales and factory output. Despite the rise, the overall freight market continues to face challenges as the economy slows.

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The trucking industry saw a small increase in freight tonnage in July, according to the latest report from the American Trucking Associations (ATA). The For-Hire Truck Tonnage Index rose by 0.3% from June to 113.7, although it was still 0.9% lower compared to July 2023. This is part of a broader trend where most months since February 2023 have shown year-over-year declines in freight tonnage.

ATA Chief Economist Bob Costello noted that while July wasn’t a particularly strong month, there are signs that the truck freight market may be gradually improving. Some of the recent gains are likely due to increased import activity, especially at West Coast ports like Los Angeles and Long Beach, as companies aim to get ahead of a potential dockworker strike in September. With the holiday season approaching, many companies are prioritizing early shipments, which has boosted demand for both rail and trucking services.

The Cass Freight Index, another measure of freight activity, reported a 1.1% year-over-year decline in shipments but saw a 3% increase from June. This indicates that while demand for goods is growing slowly, the pressure on for-hire shipments is easing as the addition of private fleet capacity slows.

The Logistics Managers’ Index (LMI), which measures the overall health of the logistics industry, registered a reading of 56.5 for July, up slightly from 55.3 in June. A reading above 50 suggests expansion in the industry, and although this marks the eighth consecutive month of growth, the rate of expansion remains below the long-term average.

Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University, pointed out that the uptick in tonnage at U.S. ports is likely temporary and driven by companies wanting to avoid disruptions from a potential strike. He noted that while this increase in activity is beneficial in the short term, the overall economy still shows signs of slowing.

Zac Rogers, associate professor of supply chain management at Colorado State University and author of the LMI report, commented that achieving a stable economic recovery is challenging amid current uncertainties. He likened it to “trying to land an airplane on a very small aircraft carrier in rough seas,” emphasizing the difficulties facing the logistics sector as it navigates ongoing challenges.

How This Affects You: Truck Drivers

If you’re a truck driver, the slight rise in freight tonnage reported by the ATA could signal a modest improvement in demand for trucking services. This might lead to more opportunities for loads, especially in areas with strong import activity, like the West Coast. However, the industry is still dealing with broader economic challenges, and demand growth remains slow.

Staying aware of market conditions can help you make informed decisions about routes and loads. As companies bring in shipments earlier to avoid potential disruptions, like a dockworker strike, there may be a short-term increase in freight demand. Keep an eye on updates from logistics and trucking reports to adjust your strategies accordingly.

Overall, while the market is showing some positive signs, the path to a full recovery remains uncertain. Being flexible and prepared for changing conditions can help you navigate this evolving landscape.

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#FreightTonnage #ATAReport #TruckingIndustry #Logistics #EconomicOutlook #SupplyChain #TruckDrivers #FreightMarket #LogisticsManagersIndex #FreightDemand