Economy
September truckload demand at an all-time high
PORTLAND, OR - The DAT North American Freight Index is reporting a soaring demand for truckload capacity last month. Spot fright demand was at an all-time high in September, with a 74% gain over the same month in 2016. The increase was the largest seen since 2010.
Trump stumps to truckers on taxes
HARRISBURG, PA - The American Trucking Associations (ATA) was on-hand in Pennsylvania this week to support President Trump in calling on the United States congress to ease the corporate tax burden on the trucking industry. ATA president and CEO Chris Spear said the group supports the President's plan to reform the U.S. tax code and hopefully have it passed into law by the end of 2017.
Freight volumes, rates to rise in ’18: Analysts
MISSISSAUGA, ON - The coming year appears to hold the promise of a growing economy, tighter capacity, and ultimately higher rates for those who haul freight. "When you have the economy doing reasonably well, transportation tends to be generally picking up," said Carlos Gomes, senior economist - Scotiabank, in a presentation during the Surface Transportation Summit in Mississauga, Ontario. He projects economic growth of about 2% in 2018, compared to the 3% seen in 2017. "The Canadian economy recently has been very strong," agreed Walter Spracklin, equity research analyst - transportation sector at RBC Capital Markets. But where railways have enjoyed higher volumes against the backdrop of recent growth, trucks didn't fare quite as well. Railway volumes surged in part because of the demand for fracking sand, feeding into the 6.5% boost in overall freight that moved over iron highways, he said. Intermodal freight volumes are growing as well, although grain volumes are likely to drop when compared to the strong crops of 2016. Of the Canadian railways, CN is seeing capacity tighten, leading to congestion challenges and a projected boost in capital spending.
Green rebates should include older vehicles: OTA
TORONTO, ON - The Ontario Trucking Association (OTA) is weighing in on the Ontario Ministry of Transportation's (MTO) draft Green Commercial Vehicle Program (GCVP). The government announced it was seeking feedback on the proposal in September, with commenting closed as of Oct. 6.
Celadon refinancing amid SEC investigation
INDIANAPOLIS, IL - The Celadon Group continues to restructure its assets in an attempt to create more liquidity, while it is being investigated by the Securities and Exchange Commission (SEC). The company, which owns Celadon Trucking and Celadon Logistics, as well as other subsidiaries, announced this morning that as part of the continuing implementation of its new strategic plan, it has refinanced its revolving credit and extended equipment leases that were maturing in 2018. Celadon's short-term revolving credit restructuring was done through Bank of America, and has a maturity date at the end of fiscal 2017. In addition it received US $22.6 million in equipment term loans secured by existing tractors and trailers used in their Hyndman subsidiary.
Kriska acquires Service Freight Systems
PRESCOTT, ON - Kriska Transportation Group (KTG) has acquired Burlington, Ontario-based Service Freight Systems (SFS), which will continue to be led by general manager Rob Ten Brinke. Service Freight Systems, a logistics company founded in 1995, specializes in temperature-controlled, cross-border, truckload freight. Kriska Group has 600 tractors, 1,700 trailers, and employs 850 people including owner-operators. Its brands include Kriska Holdings, Mill Creek Motor Freight, JMF Transport (1992), and Transpro Freight Systems. "The KTG family of companies, with its asset-based core, complements well with SFS. They will add depth to our growing investment in logistics services," said Mark Seymour, Kriska's president and Chief Executive Officer, in a related press release.
Fleet Complete and Blackberry integrate products
Customers of Blackberry and Fleet Complete will now have the ability to remotely monitor their trucks from front to back, inside and out, on one interface. This morning the companies announced they were forming a reselling partnership, which will allow Fleet Complete to sell and bundle Blackberry's Radar with its other products, expanding its current fleet tracking and monitoring solutions.
Truckload turnover up in Q2
ARLINGTON, VA - The second quarter of 2017 saw the highest employment turnover at large truckload carriers since the last quarter of 2010. The American Trucking Associations (ATA) reports turnover was higher throughout the truckload market, amid tight labor conditions, with a 16-point jump over last year at large truckload carriers to 90%.
Centurion is Profit 500’s top transportation performer
SURREY, BC - Centurion Trucking is Canada's fastest growing and most dynamic company in the transportation and logistics industry, according to the 2017 Profit 500 list. The list, complied by MacLean's and Canadianbusiness.com, ranks the British Columbia based company, with just 59 employees, 13th overall, with a five-year growth of more than 4500%.
Celadon Group sells flatbed division to PS Logistics
INDIANAPOLIS, IN - The Celadon Group has sold all the assets in its flatbed trucking division to PS Logistics. The company announced the completion of the disposition of assets Sept. 18, as part of a strategic plan to concentrate resources on other business lines and boost returns. Assets included in the transaction were primarily leased and owned trailers, which were sold in exchange for an assumption or satisfaction of the lease obligations and cash, Celadon said. It is also entitled to post-closing goodwill payments.
WABCO buys Meritor’s stake in partnership
TROY, MI - WABCO Holdings is upping the ante in its North American ownership, announcing this morning that it is taking full control of the he Meritor WABCO joint venture. In a press release, WABCO Holdings said it was purchasing Meritor's stake in the joint venture business, with a transaction that is expected to close Oct. 1. Meritor WABCO, a distributer of WABCO products for commercial vehicles in North America, employs about 200 people and had sales of $300 million in fiscal year 2016 With this agreement, WABCO will take over the former joint venture's application engineering and supply chain operations, including the distribution center and customer service hub in Hebron, Kentucky.
