Business
ATA Reports Sequential Freight Tonnage Rise for July
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.
News for You
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
Business
Jury Says Wabash Owes $462 Million in Fatal Crash Case
Summary:
A St. Louis jury awarded $462 million in damages against Wabash National Corp., a trailer manufacturer, for its role in the deaths of two men who died in a 2019 crash when their car went underneath a Wabash trailer. The jury determined that Wabash failed to install safer trailers for over 30 years. Wabash is reviewing its legal options and argues that the trailer met all existing safety standards at the time of manufacturing.
News for You
A St. Louis jury has ruled that Wabash National Corp., a trailer manufacturer, must pay $462 million in damages related to a 2019 crash that resulted in the deaths of two men, Taron Tailor and Nicholas Perkins. The crash occurred when their car collided with the rear of a Wabash-manufactured trailer, and the rear impact guard failed, allowing the car to slide under the trailer. Each family received $6 million in compensatory damages, and an additional $450 million was awarded in punitive damages, which the plaintiffs argue represents the amount Wabash saved by not upgrading to safer trailer designs over three decades.
Wabash National, headquartered in Lafayette, Indiana, responded to the verdict by stating that the trailer involved in the crash was manufactured in 2004 and met all regulatory standards at the time. They disagree with the jury’s decision, arguing that no existing rear impact guard or safety technology would have changed the outcome of the crash. Wabash also pointed out that evidence, including the fact that the driver’s blood alcohol level was above the legal limit and that neither the driver nor the passenger was wearing seat belts, was not presented to the jury.
The case has drawn attention to the broader issue of underride crashes, where a smaller vehicle slides under a truck or trailer, often resulting in severe injuries or fatalities. The plaintiff’s legal team argued that Wabash never conducted effective crash tests on their two-post impact guards and chose not to upgrade to safer, modern four-post designs to save money. They also criticized the existing federal safety standards for underride guards as inadequate and outdated.
This verdict could have significant implications for the trucking industry, which has historically resisted stricter regulations on impact guards. Advocates for crash victims are hopeful that the ruling will prompt federal regulators to enforce more robust safety standards for underride guards, which they argue are necessary to protect road users.
Wabash is currently evaluating its legal options and maintains confidence in the safety and quality of its products. The company has stated that this ruling will not deter them from continuing to provide trailers that contribute to road safety.
How This Affects You: Truck Drivers
If you’re a truck driver, this case highlights the importance of trailer safety and the ongoing discussions around underride guards. The ruling against Wabash could lead to stricter regulations for trailer manufacturers, including potential updates to the requirements for underride guards on trailers. As a driver, this could impact the type of equipment you use, and it may also increase the safety measures on the roads.
For those in the industry, staying informed about changes in safety regulations and equipment standards is crucial. Upgraded underride guards could prevent tragic accidents and improve overall road safety for all drivers. As discussions around trailer safety continue, it’s important for truck drivers and companies to prioritize compliance with the latest safety standards to minimize risks and liabilities.
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#WabashNational #TrailerSafety #UnderrideGuards #TruckingIndustry #RoadSafety #LegalCase #TruckAccidents #SafetyStandards #JuryVerdict #TruckingNews
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
Business
$3.5 million in grants to 27 colleges for commercial driver’s license (CDL) training programs.
Summary:
The Biden-Harris Administration is awarding nearly $3.5 million through the Federal Motor Carrier Safety Administration (FMCSA) to support 27 CDL training programs. These grants aim to improve driver safety, create opportunities for veterans and underserved communities, and expand the number of well-trained CDL holders as part of a broader effort to strengthen America’s supply chains and support truck drivers.
News for You
The Biden-Harris Administration, through the Federal Motor Carrier Safety Administration (FMCSA), is investing nearly $3.5 million in grants to 27 colleges and commercial driver’s license (CDL) training programs. This funding is part of the Commercial Motor Vehicle Operator Safety Training (CMVOST) Grant Program, designed to improve driver safety and create new career opportunities in the trucking industry.
U.S. Transportation Secretary Pete Buttigieg highlighted that this funding will help address the growing demand for truck drivers while preparing for the future. The grant program has three main goals: to expand the number of CDL holders with advanced safety training, to offer opportunities for veterans and their families to join the trucking or busing industry, and to increase training for individuals from rural, refugee, and underserved communities.
FMCSA Deputy Administrator Vinn White emphasized that the focus of their work is on safety, both for the roadways and for commercial motor vehicle drivers. The funding is intended to make it easier for new drivers to enter and stay in the commercial vehicle industry.
Over half of FMCSA’s annual budget goes to funding states and local communities to promote commercial motor vehicle safety. Apart from the CMVOST program, FMCSA also offers funding through the High Priority Grants Program and the Commercial Driver’s License Program Implementation Grant, all contributing to the Department of Transportation’s National Roadway Safety Strategy.
The FMCSA is committed to preventing crashes, fatalities, and injuries involving large trucks and buses. They develop safety standards, analyze data, conduct research, and work with various stakeholders to improve commercial driver training and safety.
How This Affects You: Truck Drivers
If you’re a truck driver or considering a career in trucking, the Biden-Harris Administration’s recent funding boost could directly benefit you. For current drivers, this means access to enhanced training programs designed to improve safety skills and potentially make your job safer and more efficient.
If you are a veteran, a member of the National Guard, or from a rural or underserved community, these grants are creating pathways to enter the trucking industry. The funding helps make training more accessible, which can lower the barriers to starting a career as a commercial driver.
Overall, these initiatives are part of a broader effort to strengthen America’s supply chain by ensuring that there are enough skilled drivers on the road. By focusing on safety and providing more training opportunities, the FMCSA aims to support drivers and keep the roads safer for everyone.
Hashtags
#TruckingIndustry #CDLTraining #BidenHarrisAdministration #FMCSA #DriverSafety #VeteransInTrucking #RuralCommunities #SupplyChain #RoadwaySafety #TruckingGrants #CommercialDrivers
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