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Trucker News

Ground transportation costs drop for Canadian shippers in April

The cost of ground transportation for Canadian shippers decreased 2.3% in April compared with March results, according to results published today by the Canadian General Freight Index.

The Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, decreased by 2.0% when compared to March. Average fuel surcharges assessed by carriers have seen an increase from 21.9% of base rates in March to 22.4% in April.

“We are experiencing a downward trend in both base rates and accessorials, while fuel is seeing increases for the third consecutive month,” said Doug Payne, president and COO of Nulogx. “It appears that both the domestic and cross-border truckload markets are seeing the most change as a result of these trends.”


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Trucker News

FMCSA adds caveat on crash responsibility to CSA websites

As of Tuesday, June 26, reported FMCSA Senior Transportation Specialist Bryan Price, language was added to the public Compliance, Safety, Accountability Safety Measurement System website, the SAFER website and to results from the Pre-Employment Screening Program that underscores the lack of crash responsibility in crash data. “We’ve added language to all our websites,” he said, “to more clearly articulate [the fact that] crash information doesn’t include preventability information.”

According to the information section of the CSA main site, “a caveat is placed wherever [Carrier Safety Measurement System] Crash Indicator-related values are shown. The caveat states, ‘A motor carrier’s crash assessment (Crash Indicator BASIC measure and percentile) and the list of crashes below represent a motor carrier’s involvement in 24 months of reportable crashes without any determination as to responsibility.’”

FMCSA Administrator Anne Ferro, in a June 20 conference call organized by the owner-operator members of the Trucking Solutions Group, noted that the agency was considering how to address crash responsibility in the Crash Indicator measurement. The industry could expect, she said, “sometime before the month is out,” a schedule for planned research into how exactly to account for crash responsibility in the CSA system.

“I am committed to carrying out a full analysis of what information we could use and what process we could use to better weight crashes,” she added.

Price was speaking as part of a series of webinars titled “CSA: Proposed Changes to Improve a Solid Foundation,” devoted to educating motor carriers.

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Truckers Hit the Road to Combat Sex Trade

Each year, truck drivers rack up almost 400 billion miles transporting goods across the United States.

Now, truckers are putting those miles to good use by participating in an initiative to stop human trafficking.

“They’re the eyes and ears of our nation’s highways. They see things that we don’t,” Kylla Leeburg, with Truckers Against Trafficking, said.

“They’re out on those lots, spending the night when they’re on a long haul so they’re able to capitalize on those moments,” she explained.

Many drivers, like Chris Peggins, are willing and able to call authorities when they notice a young girl or woman who might be trafficked.

“I think it’s wrong,” he said. “People are not slaves. Slavery is over with.”

At least one teenage victim has gone public thanking the truck driver who saved her. The man called authorities after spotting the girl and her cousin at a truck stop.

“If it wasn’t for him calling the police and saying she just doesn’t look right there, I have no idea what would have happened,” the victim’s mother said.

“The truck driver, the one who made the phone call, I think about him all the time,” she added. “I don’t know who he is, but I owe him a lot.”

Truck stops are often an easy place for traffickers to operate. The predators can kidnap a woman, assaulted her, then drop her off at truck stops every night, forcing her to meet a quota of customers.

Truckers Against Trafficking wants to help more truckers understand the horror that’s often right in front of them.

“They were seeing girls out on the lots,” Leeburg said.

She added that many truckers would think nothing of it, even becoming irritated at times because girls would interrupt them while they’re sleeping.

But with education, Leeburg feels truckers understand that their annoyance can be someone else’s bondage.

“What they started to see once they were learning about human trafficking is that those knocks might be desperation,” she continued.

Now, the group works with the trucking industry to spread the word. Their message: if you see something suspicious, call the national trafficking hotline at 1-888-373-7888.

“We’re already seeing hundreds of calls coming into the hotline and investigations are underway,” Brad Riley, founder of the anti-trafficking group iEmpathize, said.

The hope is that with increased awareness and involvement, truckers can become a force in shutting down the modern-day slavery taking place right on the nation’s highways.

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Trucker News

Detroit Enhances Engine Families with Fuel Economy in Mind

A sign posted in the office proclaims ‘This is Detroit,’ and it is right in every sense of the word. This is the home of a brand that shares its name with America’s motor city, and the Detroit name is gradually taking hold as the Diesel reference is removed from old Detroit Diesel signs around the Michigan facility.

But even as the word disappears from the signs, it is obvious that diesel remains an important focus. It was certainly at the top of mind as engineers worked on their latest product upgrades – leading to engines that promise to consume less fuel.

Detroit has unveiled several enhancements for its 2013 engine family, all of which play an important role in meeting 2014 regulations from the Environmental Protection Agency and National Highway Traffic Safety Administration, placing tighter controls on greenhouse gases (GHG) and delivering better fuel economy in the process.

“It is our goal to pace the industry in emissions compliance and fuel efficiency. Early submissions for GHG14 engine compliance is evidence of this strategy for the updated family of Detroit engines,” said Brad Williamson, Daimler Trucks North America’s manager, engine and component marketing.

Various changes will be seen in the DD13, DD15, DD15 TC, and DD16 engines.

The DD15 engine platform includes the widest array of upgrades and will be exclusive to the Freightliner Cascadia Evolution.

“This is the flagship product,” says Mark Groeneweg, director, truck engine product engineering at Daimler Trucks. “We have a focus here on low cost of operation and we think there’s a big, big customer benefit to be had.”

New components in the 14.8-litre engine include a liquid-only delivery system for the diesel exhaust fluid (DEF), eliminating the need for an air-assisted delivery method. This helps to reduce the load on the engine’s compressor, and applies the fluid in a spray pattern that more efficiently attacks NOx created in the combustion process.

Detroit has also eliminated one of the elements in the engine’s traditional fuel filter, introducing a design with a single element, a pre-screen, and a 100,000-mile recommended service interval that doubles the life of its predecessor. The new module will require fewer priming strokes, and offers easier access to the water drain. Meanwhile, an in-dash restriction indicator will tell drivers about the upcoming need to change the filter.

Several changes are helping to reduce the parasitic loads that would otherwise waste fuel. The existing water pump with a fixed drive, for example, is being replaced with a variable-speed design. “This allows us to not pump coolant when we don’t need it,” Groeneweg says, referring to the feature already found on Mercedes Actros engines in Europe.

Rather than using a variable turbocharger, the DD15 will also include a new fixed-geometry turbocharger that is fine-tuned to optimize engines with popular fleet ratings of 455 hp and 1,550 lb.-ft. of torque.

“This is not an off-the-shelf bought component,” Groeneweg adds, referring to the turbine’s refined shape and compressor wheel.

The fuel itself will be introduced through an amplified common rail system (ACRS), which helps Detroit to shape the engine’s rates. “It gives us a big knob to turn to keep the formation of NOx low, but get the fuel in fast,” Groeneweg explains. Injection nozzles have also been adjusted to reduce friction.

In-cylinder changes include pistons with improved oil control rings that – combined with ACRS – deliver higher injection pressures for better combustion controls. And a “carbon scraper ring” inserted at the top of the liner will peel unwanted carbon off the top of the piston, protecting against the contaminants that would otherwise polish the bores.

Electronic upgrades come in the form of faster processors and extra memory, in part to prepare a system that will be able to manage inputs from Detroit’s 12-speed automated transmissions, which were recently unveiled to round out the company’s powertrain offerings that also include axles.

“With the modifications we’ve made to the DD15, we are not only meeting compliance standards, but we’re providing our customers with a reliable solution that can provide significant fuel economy gains,” said Williamson. “And, with the recent introduction of the Freightliner Cascadia Evolution, we were able to showcase the power and performance of the enhanced engine.”

The company will offer the DD15 TC (with turbo-compounding) in other trucks, and that engine will come with many of the DD15’s upgrades including improved electronics and the single-element fuel filter. This design, says Williamson, “is kind of a go-anywhere, do-anything engine, depending on the weight and application.” It will be available in many Freightliner and Western Star models.

Horsepower-hungry Canadian buyers of today’s DD15 may need to look to the DD16 for some of their traditional ratings. While the DD15 was traditionally available with up to 560 hp and 1,850 lb.-ft. of torque, it now comes with between 455 and 505 hp and 1,550 to 1,750 lb.-ft. of torque. The enhanced DD16 now delivers 475 to 600 hp and up to 2,050 lb.-ft. torque.

Meanwhile, enhancements to the Detroit DD13 – offered with ratings from 370 to 470 hp and 1,250 to 1,650 lb.-ft. of torque – include changes to the fuel filter module, and an optional variable speed water pump that is more efficient than a gear-driven design. The engine’s buyers with LTL fleets are likely to be among those most interested in adding the feature that will be standard fare in the upgraded DD15.

A new crankcase sensor has also been added to support on-board diagnostics that need to be enhanced in 2013. The sensors and warning lights that first began to monitor emission-controlling equipment in 2010 will now need to watch over fuel, air, EGR, and cooling systems; crankcase ventilation; diesel particulate filters; selective catalytic reduction; sensors; and actuators.

Buyers will be able to order engines that meet the GHG14 standards without making any radical changes in their purchasing habits. At this point, for example, there will be no need to order locked vehicle speed limiters in a Detroit Diesel engine.

In the coming months, the real-world tests will continue as Daimler Trucks North America looks to prove the value of its engine enhancements. It is already running 30 DD15s in Freightliner Cascadia Evolution sleepers and 10 DD13s in day cabs. Those have been handed over to fleets after 10,000 miles of testing in Portland, Oregon.

The early results are promising. When comparing the average load on an EPA2010 engine to the GHG14 models, fuel economy has improved about 6.7%. “We’re off to a very, very positive start with this program,” says Tim Tindall, Detroit’s director, component sales.

A second round of test trucks and engines to be built in August will include 26 DD15s, 16 of which will have Detroit transmissions, and 35 day cabs powered by DD13s in Cascadia day cabs.

All of the rucks come with the “visibility package” in Detroit’s Virtual Technician system that can be used to track performance at any point in time, offering data such as the amount of fuel being consumed, distances traveled, fault codes, and vehicle locations.

The question that remains is when most customers will begin to buy the equipment. Past rounds of tightened emission controls led many fleets to “pre-buy” engines based on standards that existed before any changes took place, and slowed the introduction of cleaner technologies that carried higher price tags.

But the GHG14 engines could represent an important difference. This time, equipment upgrades will offer better fuel economy that can deliver return on the investments.

Tindall doesn’t personally expect a pre-buy this time around.

The real question is whether some customers choose to postpone their purchases until the more fuel-efficient models are available, he says. “Some customers have asked us about that already.”

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Freight Brokers Freight Factors Lifestyle

You’re Not On Their Mind, If You’re Not On The Phone

The freight brokerage industry can be highly competitive and volatile. It is your job to secure new customers and develop relationships that will help you keep those customers. However, your customers may be all over the country making a personal relationship hard to develop. You can overcome this by keeping in close contact with your customers and touching in early and often to keep your company front of mind for each client.

Communication…Keep It On Your Mind

Hitting the phones and providing great communication seems like an easy thing to do but far too many of us don’t do it well. There are a lot of situations we can make end up differently if we offer the necessary information our customers need during every step of the process. A great freight broker or transportation agent of any kind knows, “if you’re not on the phone, you’re not on their mind.”

Communication…Staying On Your Customers’ Mind

As a freight broker it may not always be easy to touch base with all your customers all the time. Easy or not it is your role and the reason for freight brokerages. As the communicator between the shipper and carrier you may have to deliver news you don’t want to, play hard ball for better rates on both the shipper and carrier sides, and manage different personalities all while keeping everyone happy with you and your freight brokerage business. Practice different sales techniques to develop your method for juggling all these variables and making sure you are doing what is most important for your business: getting the margin you need and maintaining your book of business.

Communication…Changing Your Prospects Mind

A freight broker needs to consistently increase his or her contact list by seeking out more shippers for continuous business opportunities. It is imperative for a freight broker to continue building their book of business to ensure they can overcome the natural lows shippers goes through during the year. Lows are caused by things like seasonality, changes in the economy, or even just broker selection by the shipper. It is possible to plan for some of these while others come by surprise. Constant solicitation will give a broker a diverse customer base so they stay busy the whole year.

There are a lot of freight brokers out there. Many are much better than others but to a shipper it’s often hard to tell them all apart. It is your job to go the extra mile to prove to your current clients and prospects you are worth the risk. Brokers who can rely on name recognition and a solid reputation often find doors open for them. Those that fight to represent their company well and work to better their reputation every day find those same doors stay open.

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Trucker News

Oil Prices

A “build” and a “Twist” knocked oil prices to the floor on Wednesday.
In the morning, the government announced a surprise increase, or build, in U.S. oil supplies. That told investors that America has a bounty of crude and less need to import more from foreign countries. Then the Federal Reserve extended an interest-rate reduction program known as Operation Twist, but declined to take more aggressive steps to boost the economy.Together, they sent the price of oil to a nine-month low.

Benchmark U.S. crude dropped $2.23, or 2.7 percent, to end the day at $81.80 per barrel in New York. That’s the lowest level since October. Brent crude, which is used to price much of the oil imported into the U.S., lost $3.07 to finish at $92.69 per barrel in London. That’s Brent’s lowest finish since December 2010.
Wednesday’s drop was among the biggest in a nearly two-month swoon that has slashes 23 percent off the price of oil.
The Energy Information Administration said oil supplies grew by 2.9 million barrels last week. That surprised analysts who had expected a decline of 600,000 barrels. Oil supplies have risen this year to the highest level since 1990, thanks to a boom in North American production.

“The U.S. is flush with oil right now,” independent analyst and trader Stephen Schork said. “And if you factor in the economic mess in Europe, slower economic growth in China, and probably overproduction from the Saudis in preparation for the Iranian oil embargo, the world has a comfortable supply” of oil.

Oil prices fell further after the Federal Reserve sharply lowered its outlook for the U.S. economy at the conclusion of a two-day policy meeting. The Fed also predicted that the unemployment rate, now 8.2 percent, probably won’t fall much further this year.In hopes of sparking borrowing and spending by consumers and businesses, the Fed said it would continue its program designed to lower long-term interest rates. Under Operation Twist, the Fed will sell $267 billion of short-term Treasurys and buy longer-term Treasurys through December.

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Trucker News

Mack Titan takes centre stage at SteelStacks area of Bethlehem

Visitors to the Levitt Pavilion in the SteelStacks area of Bethlehem are now greeted by a Mack Titan truck attached to a concession stand.

The Mack Truck Stop is slated to open June 22, as a focal point in the Levitt Pavilion at SteelStacks. The area was home to the now defunct Bethlehem Steel.

Mack has a rich history in the region, with its Customer Center in nearby Allentown and truck assembly plant in Macungie, Pa. The Mack Titan was given to students at the Lehigh Career and Technical Institute (LCTI), who then reworked the cab to fit the unique application.

“We are proud of our heritage in the Lehigh Valley, and the opportunity to partner with LCTI to give students real-world experience in their chosen career paths,” said Kevin Flaherty, president, Mack Trucks North American sales and marketing. “Built in the USA is important to Mack – all of our trucks are built right here in the Lehigh Valley. Now we can also say we have a permanent display featuring one of our models built by students in this region.”

The Titan is installed to the side of the concession stand, to give the impression it is pulling the stand as a trailer. The installation of the truck is part of an ongoing effort to revitalize the SteelStacks area.

“When guests visit the Levitt Pavilion, they’ll be greeted not only by the sounds of live music, but also by this unique concession stand and display symbolizing the incredible partnerships that have made the Levitt Pavilion possible,” said Jeff Parks, president of ArtsQuest, which is designing the area. “Mack Trucks is a longtime partner that has helped us present a variety of programming for the community over the years, and they’ve once again stepped up in a big way at the Levitt Pavilion and Mack Truck Stop. The Mack Truck Stop is a great example of their continuing support, as well as a visual reminder of Mack’s past and present contributions to the Lehigh Valley, and in fact, the entire nation. We thank them, as well as the Bethlehem Redevelopment Authority and the City of Bethlehem, for all of their support of this dynamic community music venue.”

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Trucker News

Fewer fleet failures in 1Q, report finds

The trucking industry has experienced a strong recovery in 2012, as fewer trucking companies have failed in the first quarter of 2012 than in recent years, according to the Paragon Report, which examines investment opportunities in the trucking industry. Companies who have survived the recent recession will be well-positioned to profit going forward, the report finds.

According to Avondale Partners analysts’ “failures report” in the first quarter of 2012, there were only 160 companies with an average fleet of 13 trucks that went under, compared with 295 failures in the first quarter of 2011.

“Almost by definition, if a trucking company made it through the last couple of years of turmoil in the macro economy, industry marketplace and regulatory environment, it is a result of being fairly well capitalized and fairly well operated,” the analysts said. “Or put another way, if they made it this far through the tough times, then they can make it through easier times.”

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Trucker News

Used prices on Class 8 sleepers still rising

Retail pricing for Class 8 sleeper tractors continued to increase from January through April despite average mileage near-record highs. The findings were released Thursday, June 14, as part of the June edition of Guidelines, a monthly report that analyzes retail and wholesale pricing trends in the automotive and trucking industries.

“High new-truck pricing combined with a low returning supply of used equipment has resulted in sustained price inflation,” says Chris Visser, senior analyst with the American Truck Dealers’ Commercial Truck Guide, a division of the National Automobile Dealers Association.

The ATD/NADA Commercial Truck Guide section of Guidelines shows that retail prices in the sleeper tractor market were off the peak set in September 2011 by a modest 1.5 percent, with mileage 2.4 percent higher. After declining from October 2011 through February, average pricing on sleeper tractors headed upward in March, according to the ATD/NADA guide.

According to the ATD/NADA guide, used sleeper tractors on average sold for $48,809 with 554,402 miles in April. “Because of the low new-truck build rate from 2007 to 2010 combined with the slow but steady domestic recovery, we expect the supply and demand relationship to favor high pricing for sleeper tractors going forward,” Visser says.

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Early spring increases urea demand, drives up DEF prices

April showers bring…higher diesel exhaust fluid (DEF) prices? An early end to winter across much of North America has driven up agricultural demand for urea – the key ingredient in DEF – and in many cases has translated into higher DEF prices.

“An early planting season in some areas of North America has really put a strain on urea suppliers and therefore has pushed prices up quite considerably,” said Monica Bianchi Baker, senior analyst with Integer monitors the fluid’s prices around the world. “The fertilizer business is a highly seasonal business, but the season came earlier than planned so the upward pressure on urea pricing has been very strong.”

About 88% of the urea produced globally is used as fertilizer, with the remaining 12% divided among industrial uses including the production of DEF. Only high-grade urea can be used in the production of DEF, which means not all urea suppliers can meet the demands of DEF producers.

Industrial urea consumers typically take into account the agricultural demand cycles for urea when sourcing product but those expectations went out the window with this spring’s early planting season.

“Normally, industrial users look at the seasonality of the agricultural industry to understand where they could see some pressure on prices during the year, but this year because there’s been a mild end to the winter and an early planting season, the pressure on urea itself has been quite exceptional,” Bianchi Baker explained. “From February onwards we’ve seen prices escalating.”

That hasn’t gone unnoticed by fleets that consume large amounts of the fluid. Rob Penner, executive vice-president and chief operating officer with Bison Transport, said his company is keeping a close eye on the cost of urea and DEF.

“We’re certainly seeing that urea prices have skyrocketed,” Penner told Trucknews.com. “DEF has lagged a bit but we’re starting to see that come up pretty aggressively to the tune of 10 cents per litre. Given DEF is 2-3% of our actual fuel consumption, it’s certainly significant to see that cost rise so fast.”

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Prices appear to be softening now, but Bianchi Baker said another high-demand period is about to begin and so any pricing relief could be short-lived.

“The next planting season in some parts of the US will get underway soon, so we don’t expect prices to crash,” she said.

The fierce competition for urea has translated into higher prices and in turn, has affected DEF prices in the US and Canada, Bianchi Baker explained. Urea makes up 32.5% of diesel exhaust fluid.

“What we have noticed is that in April and May, DEF suppliers have tabled some pretty hefty price increases, which to our knowledge have filtered through to the end users,” she said.

Chris Goodfellow, emissions analyst with Integer Research and editor of DEF News, said price increases generally ranged from 15 to 21 cents per gallon but in Canada, he said, the cost increases were “slightly lower” and with “less uniformity” than in the US.

Bulk DEF prices at US truck stops “at the pump” increased seven cents a gallon between April and May to $2.81, or 73 cents a litre. That’s still seven cents per litre less than the average cost “at the pump” in Canada, Goodfellow pointed out. In the States, there are more than 400 truck stops offering bulk DEF while in Canada there are only five locations – all of them in Ontario and Quebec – with an average price of 80 cents per litre, which has remained unchanged through the spring. By comparison, DEF deliveries to fleets via 1,000-litre totes averaged 65 cents per litre in May while packaged products cost about $2.21 per litre, Goodfellow noted.

“Buying in bulk does offer significant savings,” he said. “A lot of the fleets in Canada at the moment are using the tote solution.”

Carriers looking to protect themselves from pricing volatility can purchase DEF in bulk and negotiate fixed supply contracts with suppliers. While it’s not practical to purchase DEF only when agricultural demand is at a low point, Goodfellow said “Fleets that require higher volumes of DEF are in a position to negotiate medium- or long-term supply contracts to reduce their per gallon costs. In this case the ability to store and take deliveries of larger quantities of DEF will play a factor, and in some cases suppliers may be willing to assist with capital investments for storage facilities in an effort to secure high-volume business.”

Shelly Hubbard, brand manager for H2Blu with Wakefield Canada, said fleets that purchase in bulk are better protected from price swings.

“They need to buy DEF as efficiently as possible and plan their needs,” she said. “If they can get into a bulk supply situation versus a jug, drum or tote, they’d be in a better position to have the best price. Being able to obtain and then dispense their DEF from a bulk container would be in their best interest.”

Suppliers including H2Blu offer large polytanks with several thousand litres of capacity, which can be dropped at a fleet’s yard and then refilled as needed, she explained. This offers better value than the 1,000-litre totes that have become so popular.

John Lounsbury, director of marketing with Terra Environmental Technologies, suggested fleets may also want to ask where their supplier is sourcing its urea.

“Fleet should structure contracts with a producer that actually makes the urea and demonstrates controlled supply chain integrity from production to the tank of the vehicle,” he advised.

Buying DEF at major truck stops is a last resort for most large fleets.

“There’s a significant difference in price when you buy totes to begin with (compared to truck stops) and the retail market changes a lot faster than wholesale,” Bison’s Penner said. “We buy very little of it on the road.”

He added the company is considering installing storage tanks at all its terminals so it can buy DEF in even greater quantities.

The increased competition for urea may have affected prices, but there has not been a shortage of product available. According to the Web site DiscoverDEF.com, at the end of April there were 6,796 retail locations offering packaged DEF, including 635 in Canada.

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