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May 10, 2016

TRUCKING SURCHARGE * USA: Old Dominion and ABF Freight will charge shippers extra in California

* California - Shippers face trucking surcharge, to move freight in California in the wake of new labor rules 

Old Dominion Freight Line Inc. and ABF Freight System Inc. are charging customers extra to ship freight to and from California.

 --- Two large trucking companies have started charging shippers extra to move freight in and out of California, where they say new labor regulations are raising the cost of doing business. The nearly $6-per-shipment surcharge, levied by ABF Freight System Inc. and Old Dominion Freight Line Inc., comes after California this year began requiring trucking companies to pay drivers for time spent refueling, on rest breaks and other periods. Trucking companies typically pay per mile driven, and industry groups say calculating additional wages in California add to the already elevated cost of moving freight in California. The state is home to the country’s two busiest ports, as well as some of the strictest labor protections and environmental standards. The new labor rules are intended to provide “basic wage protections for workers in the trucking industry,” said Christine Baker, director of California’s Department of Industrial Relations. However, industry allies in Congress have introduced bills that would prevent states from applying regulations like California’s to truckers. Old Dominion’s surcharge is “intended to help offset only some of the ever-increasing cost of operating in the state of California,” said Chip Overbey, a senior vice president for strategic development at the company. The new labor rules raise the cost of human resources, payroll and legal services, among other expenses, he said...  
(Photo AP - Old Dominion Freight Line Inc. and ABF Freight System Inc. are charging customers extra to ship freight to and from California) -- Los Angeles, CAL, USA - The WSJ, by ERICA E. PHILLIPS - May 6, 2016

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May 24, 2015

SAVING COST OF TRUCKING * USA: eHorizon System reduces overall fuel consumption by around 3%

* Michigan - In trucking, a little automation saves a lot of money
-- According to trucking analyst Andy Ahern, 60% of wasted truck fuel is caused by driver overacceleration—for instance, hitting the gas on the way down a hill, only to have to brake to slow down at the bottom... Continental AG’s eHorizon system, housed in a small unit that connects to trucks’ existing controls, works to prevent that waste. It uses a topographical database to plan acceleration and braking to take advantage of momentum on hills. The system can plan acceleration decisions before a human driver can even see the hill around the next bend... Robert Gee, Continental’s head of product management, says that eHorizon reduces overall fuel consumption by around 3%. That might not add up to much for a small car, but it can save around $2,000 worth of fuel for a single freight truck per year... The American Trucking Association counts 2.4 million semi trucks on the road in the U.S., so nationwide use of such systems could save as much as 1.6 billion gallons of fuel and $4.8 billion annually. The U.S. Energy Information Administration states that burning a gallon of diesel fuel generates 22.38 pounds of atmospheric carbon, so using such systems has the potential to cut truck emissions by more than 35 billion pounds per year...
(Photo: The eHorizon data delivers up-to-date information on the road ahead) -- Auburn Hills, Michigan, USA - Fortune, by David Z. Morris - MAY 19, 2015

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Oct 30, 2010

FREIGHT COSTS * Canada - Shippers See Broader Cost Increase

Freight cost index shows higher rates spreading beyond truckload sector

Toronto,ONT,Canada -The Journal of Commerce Online, by William B. Cassidy -Oct 27, 2010: -- Canadian shippers are paying higher truckload rates and cross-border and less-than-truckload prices are rising as well, the Canadian General Freight Index says... The latest update to the CGFI shows a 1.5 percent increase in overall freight costs for shippers in August from the previous month, and a 1.7 percent rise in base rates... It was the fourth consecutive monthly increase in the CGFI since it reached a low point in April 2010, according to Nulogx, which sponsors the index... Ground transportation costs in Canada were up 4.5 percent from a year ago in their second consecutive monthly year-over-year increase, the index said... The CGFI tracks changes in transportation prices paid by Canadian shippers, excluding bulk, liquid and other specialty transportation services... Nulogx is a Canadian freight payment and transportation management firm that handles more than $750 million in annual transactions...

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Apr 15, 2010

TRUCKING STATISTICS * USA & Canada - Truckload Spot Prices Rocket in March

Based on millions of spot truckloads and available trucks fed into TransCore’s DAT Network

Portland,OR,USA -The Journal of Commerce Online, by William B. Cassidy -Apr 14, 2010: -- TransCore North American Freight Index hits highest level since June 2008... Truckload spot market freight volume reached pre-recession levels in March, climbing 259 percent from a year ago and 14 percent from March 2008, according to TransCore’s North American Freight Index. The index broke 1,000 for the first time since June 2008... It was the sixth straight month of positive year-over-year comparisons in the index, which is based on millions of spot truckloads and available trucks fed into TransCore’s DAT Network -- a load board for shippers and carriers in the United States and Canada... March’s spot freight also exceeded February’s volume by 44 percent. A month-over-month increase is typical in this season, and this month approached the five-year average increase of 46.6 percent between the two corresponding months of 2005 through 2009... (Photo from usxpress: USXpres Enterpirses' trucks)


* USA - Freight Index Rises for Second Month: Despite gain, TSI remains at lowest level for February since 1997

Washington,DC,USA -The Journal of Commerce Online, by Joseph Bonney -Apr 14, 2010: -- The Transportation Department’s Freight Transportation Services Index, which measures month-to-month changes in freight shipments in ton-miles, rose for the second straight month in February... The TSI was 96.9 in February. The monthly index bottomed out at 93.5 last May, its lowest level since June 1997. It peaked at 112.9 in May 2006... Although the February index was up from the 96.3 in January, it was the lowest level for any February since 1997... The index, published by the DOT’s Bureau of Transportation Statistics, has risen by 3.6 in the last nine months, starting in June, after declining 15.3 in the previous 10 months... The index measures output of the for-hire freight transportation industry and consists of data from fore-hire trucking, rail, inland waterways, pipelines and air freight...


* USA - Fed Report Shows Improved Transport Activity

Washington,DC,USA -Transport Topics -15 April 2010: -- The U.S. economy improved in most of the Federal Reserve’s 12 districts in March, with the transportation sector improving in most areas, the Fed said... Overall economic activity increased somewhat across all districts except St. Louis, which reported “softened” conditions, the Fed said in its latest “beige book” report released Wednesday... Freight transport executives in the Cleveland district said shipping volumes continued to show gradual improvement and that they expected that to continue, although “profit margins remain constrained due to overcapacity and rising fuel costs, which have to be absorbed into the current rate structure” ... A handful of firms said they planned on partially reinstating employer matches to employee 401(k) plans or on giving small pay increases, the Fed said... The Fed releases its beige book report eight times a year. Wednesday’s report, which covered the period of Feb. 23 through April 4, was prepared by the Minneapolis Fed...

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