ATA Backs Bipartisan Effort to Eliminate Truck and Trailer Tax

The American Trucking Associations applauded congressional leaders for introducing legislation to repeal the antiquated federal excise tax on the purchase of new trucks and trailers. “First implemented over a century ago to help finance America’s effort in World War I, the FET has become the largest excise tax on any product, adding $24,000 to the cost of each new clean-diesel tractor-trailer,” said American Trucking Associations President & CEO Chris Spear. “Keeping this antiquated tax on the books imposes an enormous hardship, particularly for the small fleets, family businesses, and independent truckers who make up the overwhelming majority of trucking. Removing this burden will allow motor carriers to replace their trucks with modern, safer, and cleaner equipment, which will in turn provide a boost to manufacturing jobs. Our industry is grateful to Reps. LaMalfa, Pappas, LaHood, Carbajal, and Miller for their leadership on this issue to improve highway safety, reduce emissions, and strengthen our economy.” The FET began in 1917 to help finance World War I. Today, it is the highest percentage federal excise tax – at 12 percent – levied on any product, amounting to a $6 billion annual burden on the trucking industry.
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UPS Unveils Game-Changing UPS® Global Checkout: No More Surprise Import Fees

UPS announced the launch of UPS Global Checkout, an exciting new service that makes it even easier for consumers around the world to buy online from shippers around the world. Until now, international purchases often arrived with an unpleasant surprise – an additional bill for unpaid import costs. UPS Global Checkout solves that problem by guaranteeing upfront the amount online shoppers pay in duties, fees and taxes, and eliminating the frustration of unexpected costs at delivery. UPS is the only global integrated carrier to offer a guaranteed landed cost solution for international shipping that is seamlessly incorporated into its shipping technology, transforming the shopping experience and offering complete transparency on costs. With updates in near real time, the service adjusts to policy changes, international tax laws, duties and tariffs, helping to avoid surprise costs and offering a positive delivery experience. Available in 43 origin countries and delivering to more than 200 destinations worldwide, the service helps businesses of all sizes grow globally by streamlining international shipping.
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ATA Truck Tonnage Index Jumped 3% in February

“After a scant 0.1% decline in January, which wasn’t bad considering the harsh winter weather and California wildfires, truck tonnage had a robust gain in February” said ATA Chief Economist Bob Costello. “This outcome fits well with our growing optimism for the truck freight market after a two-year recession. Some of the gain in February was due to accelerated imports early in the year as shippers rushed to bring products into the U.S. before tariffs hit. Even accounting for this, the first two months of the year were positive, all things considered, indicating that the freight recovery has indeed begun.” In February, the ATA advanced seasonally adjusted For-Hire Truck Tonnage Index equaled 115.2, up from 111.9 in January. The index, which is based on 2015 as 100, was up 0.6% from the same month last year, the second straight year-over-year increase, which hasn’t happened since early 2023. The not seasonally adjusted index, which calculates raw changes in tonnage hauled, equaled 104.8 in February, 4.7% below January’s reading of 110.0.
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ATA Truck Tonnage Index Unchanged in January

“After declines in November and December totaling 1.7%, tonnage was unchanged in January” said ATA Chief Economist Bob Costello. “This outcome is impressive considering the massive winter storm that brought cold temperatures and significant snowfalls to large parts of the country, including those that rarely see such storms. Furthermore, the terrible wildfires in California likely also caused freight disruptions. Softness in manufacturing and retail sales continue to be a drag on truck freight volumes as well, so the fact tonnage was flat is a positive sign.” In January, the ATA advanced seasonally adjusted For-Hire Truck Tonnage Index equaled 111.9 the same as December. The index, which is based on 2015 as 100, was up 0.3% from the same month last year, the first year-over-year increase since August. The not seasonally adjusted index, which calculates raw changes in tonnage hauled, equaled 110 in January, 1.1% above December’s reading of 108.9.
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FedEx Acquires RouteSmart Technologies, Further Strengthening Global Pickup and Delivery Optimization

FedEx Corp. announced that it has acquired RouteSmart Technologies, a global leader in route optimization solutions with over 40 years of expertise, providing mission-critical technology to newspaper, postal & parcel, public works, utilities & field service, and waste collection organizations worldwide. The combination of RouteSmart’s leading technology solutions with FedEx’s unparalleled physical and data networks will enable the world’s largest express transportation provider to further drive efficiency across its own global operations, while also strengthening the company’s suite of technology solutions. “This is yet another step on our journey to make supply chains smarter for everyone as we revolutionize logistics,” said Raj Subramaniam, president and chief executive officer, FedEx Corporation. “Our physical network generates terabytes of data that contain invaluable insights about the global supply chain. Through this acquisition, we will use RouteSmart’s expertise and proven technology platform to accelerate the deployment of a common route optimization capability for FedEx operations that will enable our team members to work safer and smarter as they deliver superior service to our customers.”
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ATA Truck Tonnage Index Contracted 1.1% in December

“For the first time since March and April truck tonnage contracted for two consecutive months,” said ATA Chief Economist Bob Costello. “Tonnage fell 1.8% in November, bringing the two-month total decrease to 2.9%, pushing tonnage to its lowest level since January 2024. Sluggishness in factory output continues to weigh on freight volumes, but another drag on the index has been fleet growth at private carriers, which is holding back how much freight is flowing to for-hire carriers.” In December, the ATA advanced seasonally adjusted For-Hire Truck Tonnage Index equaled 111.3 compared with 112.6 in November. The index, which is based on 2015 as 100, was down 3.2% from the same month last year. The not seasonally adjusted index, which calculates raw changes in tonnage hauled, equaled 108.8 in December, 0.9% below November. The seasonally adjusted decrease follows a sequential 1.8% drop in November, which was revised up from the December 24 press release.
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UPS Completes Acquisitions of Healthcare Cold-Chain Logistics Providers Frigo-Trans and BPL

UPS announced that it has completed the acquisition of Frigo-Trans and its sister company BPL, which provide industry-leading, complex healthcare logistics solutions across Europe. The acquisitions further enhance the end-to-end capabilities available to UPS Healthcare customers, who increasingly need temperature-controlled and time-critical logistics solutions globally. Frigo-Trans’ network includes temperature-controlled warehousing ranging from cryopreservation (-196°C) to ambient (+15° to +25°C) as well as Pan-European cold chain transportation. This combined with the logistics solutions brought by BPL’s time-critical freight forwarding capabilities further enhances UPS Healthcare solutions for customers in Europe.
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FedEx Announces Intent to Separate FedEx Freight

FedEx Corp. announced that its Board of Directors has concluded a comprehensive assessment of the role of FedEx Freight as part of its portfolio and has decided to pursue a full separation of FedEx Freight through the capital markets, creating a new publicly traded company. The separation is expected to be achieved in a tax-efficient manner for FedEx stockholders and executed within the next 18 months. As two industry-leading public companies, FedEx and FedEx Freight will continue to pursue their growth strategies. The separation will allow for more customized operational execution along with more tailored investment and capital allocation strategies to serve the unique and evolving needs of both the global parcel and LTL markets. They will also maintain the strategic advantages of cooperation on key commercial, operational, and technology initiatives. Customers of both businesses will continue to enjoy the same superior service, speed, and coverage they have come to expect from FedEx.
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ATA Truck Tonnage Index Contracted 1.9% in November

“The frustratingly choppy freight environment continued in November,” said ATA Chief Economist Bob Costello. “Since hitting a low in January of this year, tonnage is up a total of 1.1%, but the path has been fraught with nice gains one month only to come back down the next. The good news is that the overall trend this year is up, albeit at a slow rate.” In November, the ATA advanced seasonally adjusted For-Hire Truck Tonnage Index equaled 112.5 compared with 114.6 in October. The index, which is based on 2015 as 100, was down 1% from the same month last year. The not seasonally adjusted index, which calculates raw changes in tonnage hauled, equaled 109.6 in November, 9.6% below October. The seasonally adjusted decrease follows a sequential 1.2% gain in October, which was unchanged from the November 19 press release.
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Port Worker Strike Concerns Reignite

Union leaders have cut off negotiations for a new contract for port workers on the East and Gulf Coasts over automation concerns, a development that comes with less than two months to go before the docksiders say they’ll again strike if a fresh six-year deal for them isn’t inked. It’s a notable development for the promotional products market, which imports the vast majority of products it sells in North America on ships that bring goods from Asia and other parts of the world. A lengthy strike on the East and Gulf Coasts could seriously snarl the supply chain of the promo products industry and other sectors.
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Senate Passes Credentialing Reform Bill Championed by ATA

“After years of paying the price for an inefficient credentialing system, relief is finally within sight for truck drivers and other essential transportation workers who keep our supply chain running. The Senate’s passage of the Transportation Security Screening Modernization Act is a victory for commonsense and puts us on the verge of eliminating unnecessary bureaucratic hurdles imposed by the federal government that waste time and money,” said ATA President & CEO Chris Spear. “By streamlining the administration of these important programs, this bipartisan legislation will make it easier and less costly for hardworking Americans to obtain the credentials they need to do their jobs. We commend the Members of Congress who authored this bipartisan bill to support truckers, and we look forward to working with them to ensure this bill becomes law by the end of this year.”
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ATA Truck Tonnage Index Rose 1.2% in October

“The slow, and choppy, climb off of the bottom continued in October,” said ATA Chief Economist Bob Costello. “Since hitting a low in January of this year, tonnage is up a total of 3%, plus the index is up sequentially in three of the last four months. No doubt the freight market has improved – albeit slowly – over the course of the year.” In October, the ATA advanced seasonally adjusted For-Hire Truck Tonnage Index equaled 114.6 compared with 113.3 in September. The index, which is based on 2015 as 100, equaled the reading from the same month last year. The not seasonally adjusted index, which calculates raw changes in tonnage hauled equaled 121.3 in October, 8.6% above September. The seasonally adjusted increase follows a decline in September, which was revised up slightly from the October 22 press release.
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UPS Releases 3Q 2024 Earnings

UPS announced third-quarter 2024 consolidated revenues of $22.2 billion, a 5.6% increase from the third quarter of 2023. Consolidated operating profit was $2.0 billion, up 47.8% compared to the third quarter of 2023, and up 22.8% on a non-GAAP adjusted basis. Diluted earnings per share were $1.80 for the quarter; non-GAAP adjusted diluted earnings per share were $1.76, 12.1% above the same period in 2023. For the third quarter of 2024, GAAP results include an after-tax net benefit of $36 million, or $0.04 per diluted share, comprised of a $152 million gain resulting from the divestiture of the Coyote Logistics business net of transformation strategy costs of $116 million.
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ATA Truck Tonnage Index Decreased 2.1% in September

American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index decreased 2.1% in September after rising 1.7% in August. In September, the index equaled 113.2 (2015=100) compared with 115.6 in August. “After increasing a total of 2.1% in July and August, tonnage fell by that amount in September,” said ATA Chief Economist Bob Costello. “Freight has been very choppy this year, but despite the latest drop, tonnage is up 1.8% since hitting a low in January. No doubt, the climb up has been slow and difficult as manufacturing activity remains flat, but the trend is up, not down.” August’s increase was revised down slightly from our September 24 press release. Compared with September 2023, the index fell 0.9%, after rising 0.6% in August from a year earlier.
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FedEx Reports First Quarter Results

First quarter results were negatively affected by a mix shift, which reduced demand for priority services, increased demand for deferred services, and constrained yield growth. In addition, higher operating expenses and one fewer operating day negatively affected the quarter’s results. A reduction of structural costs from the company’s DRIVE program initiatives partially offset these factors. “Despite a challenging quarter, we remain focused on transforming our network, improving our efficiency, lowering our cost-to-serve, and enhancing our ability to adapt with speed to evolving market dynamics,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “Overall, I remain confident in the value-creation opportunities ahead as we focus on reducing our structural cost, growing revenue profitably, and leveraging the insights from our vast collection of data as we continue to build the world’s most flexible, efficient and intelligent network.”
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ATA Truck Tonnage Index Increased 1.8% in August

American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index grew 1.8% in August after rising 0.4% in July. In August, the index equaled 115.8 (2015=100) compared with 113.8 in July. “August tonnage levels rose to the highest level since February 2023,” said ATA Chief Economist Bob Costello. “Not only does the latest robust gain show freight levels are coming off the bottom, but so does the sequential pattern over the last eight months. Starting earlier this year, every time tonnage falls, it is higher than the previous low. For me, this month-to-month pattern is more important than looking at the year-over-year percent changes since we are at an inflection point in the freight market.” July’s increase was revised up from our August 20 press release. Compared with August 2023, the index increased 0.7%, just the second year-over-year gain in the last eighteen months (the other being in May 2024).
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Port officials brace for potential strike by dockworkers along the East Coast

The Port Authority of New York and New Jersey is "coordinating with partners across the supply chain to prepare for any impacts" from a possible work stoppage by workers represented by the International Longshoremen's Association as they negotiate with the United States Maritime Alliance (USMX), a Port Authority spokesperson told CBS MoneyWatch on Friday. "We urge both sides to find common ground and keep the cargo flowing for the good of the national economy," added the spokesperson, noting that $240 billion in goods move through the two ports each year and that such trade supports more than 600,000 local jobs. According to the union, a strike would affect ports from Maine to Texas. A stoppage could involve up to 45,000 workers at ports that account for roughly 60% of U.S. shipping traffic, leading to a major disruption of shipments, Oxford Economics said in a report.
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Biden won’t block potential strike at East Coast ports, administration official says

U.S. President Joe Biden does not intend to invoke a federal law to prevent a port strike on the East Coast and Gulf of Mexico if dockworkers fail to secure a new labor contract by an Oct. 1 deadline, an administration official said on Tuesday. The International Longshoremen's Association, negotiating on behalf of workers at three dozen U.S. ports from Maine to Texas that handle about half of the nation's ocean imports, warned again on Tuesday that its members are prepared to stop work in two weeks. Their current six-year agreement with the United States Maritime Alliance (USMX), which includes employers like Maersk's (MAERSKb.CO), opens new tab APM Terminals and SSA Marine, expires on Sept. 30. U.S. presidents can intervene in labor disputes that threaten national security or safety by imposing an 80-day cooling-off period under the federal Taft-Hartley Act, forcing workers back on the job while negotiations continue.
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Potential port strike has retailers, manufacturers scrambling

Retailers and manufacturers are seeking to mitigate a potentially multibillion-dollar hit if members of the International Longshoremen’s Association go on strike beginning Oct. 1 at 13 of the nation’s major East Coast and Gulf Coast ports. The contract between the ILA and the United States Maritime Alliance, which negotiates on behalf of management of the ports, terminals and shipping lines, is due to expire at midnight on Sept. 30. The contract covers 25,000 workers and ports stretching from Boston to Houston, the ILA said. Billions of dollars worth of imported goods, from cars and light trucks to electronics to food, clothing, jewelry and agricultural products come into the U.S. through East Coast and Gulf Coast ports.
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ATA Releases Latest Edition of American Trucking Trends

“Trends is an important record of how the trucking industry is performing,” said ATA Chief Economist Bob Costello. “That’s why it is on the shelves of business leaders and policymakers across North America. “This year’s edition shows that 2023 was a very challenging year, but the industry weathered the storm, moving more than 11 billion tons of freight during the year,” he said. Among the key findings in this year’s report: *Preliminary figures indicate that trucks moved 11.18 billion tons of freight in 2023, down from the 11.46 billion tons hauled the previous year. *Preliminary figures indicate that the industry saw revenues grow to $987 billion, up from $940.8 billion in 2022. *Trucking employed 8.5 million people in industry-related jobs, including 3.55 million professional drivers in 2023. *The industry remains one made up of small businesses, with 95.5% of carriers operating 10 or fewer trucks and 99.6% operating fewer than 100 power units. *Cross-border trade remained a robust source of freight for motor carriers, with trucks moving 66.5% of surface trade between the US and Canada, and 84.5% of goods across the Mexican border in 2023.
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Union reps back East and Gulf Coast dock strike

Representatives of unionized dockworkers this week unanimously supported leadership calls for a strike at U.S. East and Gulf Coast ports if a new contract with employers isn’t reached by Oct. 1. Nearly 300 International Longshoremen’s Association delegates concluded two days of meetings in New Jersey by unanimously supporting International President Harold J. Daggett’s call for a coastwide strike at ports from Maine to Texas on Oct. 1 if a new Master Contract with United States Maritime Alliance employers to replace the current six-year pact is not reached by that time.
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ATA Truck Tonnage Index Rose 0.3% in July

American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index increased 0.3% in July after declining 1.8% in June. In July, the index equaled 113.7 (2015=100) compared with 113.3 in June. “While July wasn’t a strong month, we see continued evidence that the truck freight market is likely turning a corner, albeit slowly,” said ATA Chief Economist Bob Costello. “Some of July’s small gain was likely due to strong import activity, especially at West Coast seaports. Decent retail sales and factory output growing slightly from a year earlier also helped truck tonnage last month.” June’s decrease was revised down from our July 23 press release. Compared with July 2023, the index decreased 0.9%. In June, the index was down 0.6% from a year earlier.
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Massive looming Canadian rail shutdown could have economic ripple effects throughout America

Canada’s freight rail network could come to a grinding halt this week, inflicting a huge economic toll after the country’s two largest railroad operators on Sunday issued lockout notices to the Teamsters union that represents nearly 10,000 workers. Failing last-minute deals, both Canadian National Railway and Canadian Pacific Kansas City plan to lock out workers from the early hours of Thursday. It marks the first time that the country has faced a simultaneous labor stoppage at the railroad firms as they normally negotiate their labor agreements in alternate years. The stoppages could cripple the shipment of food grains, beans, potash, coal and timber which form a large part of Canada’s exports, while also impacting shipments ranging from petroleum products to chemicals and cars.
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Dockworker union issues 60-day strike notice ahead of potential walkouts on US East Coast (8/12/24)

Last week, the International Longshoremen’s Association provided a legally-required 60-day strike notice ahead of the expiration of the East Coast dockworkers’ contract at the end of September. More than 40,000 port workers are pressing for strike action against the United States Maritime Alliance (USMX) on October 1 if their demands are not met. A strike by East Coast dockworkers would have a colossal impact not only on the profits of the major maritime shipping companies, but, most significantly, on the entire global capitalist economy. The contract covers 36 ports on the Atlantic and Gulf Coasts of the United States, including the port of New York and New Jersey, the second biggest in the country. The Atlantic and Gulf ports handle over 100 million tons of cargo every year from Europe, South America and Asia.
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Canada rejects CN Rail’s request for binding arbitration in labor dispute (8/15/24)

Canadian Labour Minister Steven MacKinnon has rejected a request by Canadian National Railway to initiate binding arbitration in a labor dispute with the Teamsters union, a spokesman for the minister said on Thursday. In a letter to CN Rail's lawyers, MacKinnon said it was the shared responsibility of the company and the union to negotiate in good faith. The letter, sent on Wednesday, was released by the Teamsters. Talks between CN Railway and Canadian Pacific Kansas City - the country's two largest rail companies - and the Teamsters are deadlocked, with each side blaming the other. CN Rail said it was disappointed by MacKinnon's decision, saying he would have to reconsider if the union did not "get serious and engage meaningfully at the negotiating table".
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ATA Truck Tonnage Index Fell 1.6% in June

American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index decreased 1.6% in June after increasing 3% in May. In June, the index equaled 113.5 (2015=100) compared with 115.3 in May. “While giving back some of the gain from May, it appears that truck freight tonnage is slowly going in the right direction since hitting a recent low in January,” said ATA Chief Economist Bob Costello. “Despite June’s decline, the second quarter average was 0.2% above the first quarter and only 0.2% below the second quarter in 2023, which are good signs that truck freight might be finally turning the corner.” May’s increase was revised down from our June 18 press release. Compared with June 2023, the index decreased 0.4%. In May, the index was up 1% from a year earlier, which was the first year-over-year gain since February 2023.
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UPS Releases 2Q 2024 Earnings

UPS announced second-quarter 2024 consolidated revenues of $21.8 billion, a 1.1% decrease from the second quarter of 2023. Consolidated operating profit was $1.9 billion, down 30.1% compared to the second quarter of 2023, and down 29.3% on an adjusted basis. Diluted earnings per share were $1.65 for the quarter; adjusted diluted earnings per share of $1.79 were 29.5% below the same period in 2023. For the second quarter of 2024, GAAP results include an after-tax charge of $120 million, or $0.14 per diluted share, comprised of a one-time payment of $94 million to settle an international regulatory matter, and transformation and other charges of $26 million. “I want to thank all UPSers for their hard work and efforts in the second quarter,” said Carol Tomé, UPS chief executive officer. “This quarter was a significant turning point for our company as we returned to volume growth in the U.S., the first time in nine quarters. As expected, our operating profit declined in the first half of 2024 from what we reported last year. Going forward we expect to return to operating profit growth.”
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UPS Announces Sale of Coyote Logistics to RXO, Inc.

UPS announced it has entered into an agreement to sell its Coyote Logistics business unit to RXO, Inc., for $1.025 billion. “As UPS positions itself to become the premium small package provider and logistics partner in the world, the decision to sell our Coyote Logistics business allows an even greater focus on our core business,” said UPS Chief Executive Officer Carol B. Tomé. Based in Chicago, Coyote Logistics is a leading global third-party logistics (3PL) provider, working with 100,000 network carriers and managing 10,000 loads per day. The transaction is expected to close by the end of the year, subject to regulatory review and approval. Upon completion of the transaction, the company will update its financial outlook.
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ATA Truck Tonnage Index Jumped 3.6% in May

American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index increased 3.6% in May after decreasing 1% in April. In May, the index equaled 115.9 (2015=100) compared with 111.9 in April. “May was the first month since February 2023 that tonnage increased both sequentially and from a year earlier,” said ATA Chief Economist Bob Costello. “While there was clearly an increase in freight before the Memorial Day holiday, it is still too early to say whether this is the start of a long-awaited recovery in the truck freight market.” April’s decrease was revised up slightly from our May 21 press release. Compared with May 2023, the index rose 1.5%, the first year-over-year gain in fifteen months. In April, the index was down 1.3% from a year earlier.
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U.S. East Coast port union strike threat to test shippers’ nerves

Labor talks at U.S. ports on the East Coast and Gulf of Mexico are a looming risk for retailers, manufacturers and other shippers already grappling with longer transit times and higher costs. The International Longshoremen's Association contract covering 45,000 dockworkers at three dozen ports stretching from Maine to Texas expires on Sept. 30. If there is no deal by then, the union could call a strike that would hit during the vital holiday container shipping season and labor-friendly U.S. President Joe Biden's bid for reelection. The ILA on Monday called off this week's planned start of talks with the U.S. Maritime Alliance, citing one member of that employer group's use of automation technology in violation of prior agreements.
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ATA Truck Tonnage Index Decreased 1.2% in April

American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index declined 1.2% in April after decreasing 2.2% in March. In April, the index equaled 111.7 (2015=100) compared with 113.1 in March. “The truck freight market remained soft in April as seasonally adjusted volumes fell for the second straight month,” said American Trucking Associations Chief Economist Bob Costello. “With a rebound in freight remaining elusive, it is likely that additional capacity will leave the industry in the face of continued softness in the market.” March’s decrease was revised down slightly from our April 23 press release. Compared with April 2023, the index fell 1.5%, which was the fourteenth straight year-over-year decline. In March, the index was down 1.3% from a year earlier.
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Trucking Industry Commends Senate Passage of Diesel Emissions Reduction Act

The trucking industry applauded the Senate’s passage of the Diesel Emissions Reduction Act (DERA) of 2023, which would reauthorize the DERA program through fiscal year 2029 at $100 million annually. The bill will now be considered by the House of Representatives. DERA provides federal grants and rebates to help finance the voluntary replacement or retrofits of heavy-duty diesel vehicles and engines. By helping to upgrade tens of thousands of vehicles over nearly two decades, DERA is responsible for saving more than 520 million gallons of fuel. Replacing older vehicles is critical to protecting the environment because advancements in clean diesel engine technology have resulted in substantially lower emissions. In fact, it would take 60 of today’s trucks to emit what just one truck did in 1988. A newly manufactured truck produces half the CO2 emissions of one manufactured in 2010.
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EV mandates for the trucking industry are disconnected from reality.

The best approach to decarbonization provides the greatest environmental benefit at the lowest possible cost. Current regulations do neither while unleashing inflationary consequences that will be felt for decades to come. EV mandates for the trucking industry are an enormous mistake for many reasons validated by a new study from the American Transportation Research Institute. The report, Renewable Diesel – A Catalyst for Decarbonization, provides data using the U.S. Department of Energy's GREET model that proves renewable diesel (RD) has a much smaller carbon footprint over its lifecycle than do battery-electric trucks, and that widescale adoption of RD in trucking can be achieved at a fraction of the cost of electrification. To be clear: the trucking industry is not opposed to battery-electric vehicles (BEV). Some fleets are testing them, and the initial results are mixed at best. What's abundantly clear from early adopters of this technology is that the hurdles to widescale adoption are so massive and undeniable that target and timelines mandated by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) can be described as nothing more than utterly disconnected from reality.
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Trucking Fleet Manager Testifies to Congress on Challenges of Vehicle Electrification

Taki Darakos, PITT OHIO’s fleet manager who oversees the acquisition and maintenance of 1,550 company-owned tractors and box trucks, testified before Congress on the technological, operational, and financial challenges fleets face as federal and state regulations mandate the adoption of battery-electric trucks. “After meticulous evaluation and planning with our truck manufacturer, we put into service our first battery-electric trucks,” Darakos said. “Although battery-electric trucks show promise in certain applications, they are not ready for broad deployment due to technology limitations.” PITT OHIO is a freight transportation provider that operates in 14 states out of 25 terminals and employs more than 3,500 people. As the Vice President of Vehicle Maintenance and Fleet Service at PITT OHIO, Darakos shared his extensive, real-world experience with the House Subcommittee on Highways and Transit.
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ATA Truck Tonnage Index Decreased 2% in March

American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index declined 2% in March after increasing 4% in February. In March, the index equaled 113.4 (2015=100) compared with 115.7 in February. “Tonnage in March suggests that truck freight volumes remain lackluster, and it is clear the truck freight recession continued through the first quarter,” said ATA Chief Economist Bob Costello. “In the first three months of 2024, ATA’s tonnage index contracted 0.8% from the previous quarter and declined 2.4% from a year earlier, highlighting ongoing challenges the industry is navigating.” February’s increase was revised down slightly from our March 19 press release.
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ATA Truck Tonnage Index Increased 4.3% in February

American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index increased 4.3% in February after decreasing 3.2% in January. In February, the index equaled 116.0 (2015=100) compared with 111.3 in January. “After a very soft January, due in part to winter storms, truck tonnage snapped back in February,” said ATA Chief Economist Bob Costello. “February’s level was the highest in a year, yet the index still contracted from a year earlier, suggesting truck freight remains in a recession.” January’s decrease was revised up from our February 20 press release. Compared with February 2023, the index fell 1.4%, which was the twelfth straight year-over-year decline. In January, the index was down 4.5% from a year earlier.
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New Report Pegs Cost of Electrifying U.S. Commercial Truck Fleet at $1 Trillion

Full electrification of the U.S. commercial truck fleet would require nearly $1 trillion in infrastructure investment alone, according to a new report from Roland Berger released today by the Clean Freight Coalition. The study forecasts a realistic infrastructure buildout for the electrification of medium- and heavy-duty commercial vehicles, exposing what the CFC calls a massive investment gap as state and federal policymakers mandate increased adoption rates of battery-electric commercial vehicles. Key findings: Preparing today’s commercial vehicle fleet for electrification would require the commercial vehicle industry to invest upwards of $620 billion in charging infrastructure alone, including chargers, site infrastructure and electric service upgrades. Utilities would need to invest $370 billion to upgrade their grid networks to meet the demands of just commercial vehicles. This nearly $1 trillion expenditure does not account for the cost of new battery-electric trucks, which according to market research can be two to three times more expensive than their diesel-powered equivalents.
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Parts and Labor Costs Fell Slightly in the Fourth Quarter of 2023

American Trucking Associations’ Technology & Maintenance Council and Decisiv Inc. said combined parts and labor expenses fell 1.4% during the fourth quarter of 2023. In the latest Decisiv/TMC North American Service Event Benchmark Report, TMC and Decisiv found that 25 key VMRS systems dipped in the final quarter of 2023, reversing a 2.1% increase the previous quarter. The decrease was driven largely by parts costs, which dropped 2.2% in the fourth quarter of 2023 while labor costs fell 0.2%. While quarter-over-quarter parts and labor costs both declined in the last three months of the year, the parts-to-labor ratio held steady at about 1.5 for the past year. On a year-over-year basis, combined parts and labor costs in final quarter of 2023 were 0.2% higher than the same quarter in 2022. However, in the annual comparison, a 2.2% drop in parts prices was offset by a 4.0% rise in labor costs.
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SCA continues with geofencing

Digital speed limitation for timber trucks works well on stretches with a lot of infrastructure, and haulage companies show great commitment to safer timber transports. This is demonstrated by the geofencing project that SCA has undertaken in collaboration with the Swedish Transport Administration. "We continue to utilize the technology on both existing routes and new ones," says Lars Nolander, logistics manager at SCA Skog. SCA's efforts to create safer timber transports have been ongoing for several years, and the latest initiative involves testing digital speed limitation, known as geofencing, on four selected routes in Västernorrland and Jämtland, where the road passes through villages or residential areas with houses and residents along the way. The technology involves creating zones using GPS points, where the vehicle senses when it's time to adjust the speed. Four haulage companies and nearly 40 timber trucks have been involved in the project.
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ATA Truck Tonnage Index Decreased 3.5% in January

American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index decreased 3.5% in January after increasing 1.2% in December. In January, the index equaled 111.0 (2015=100) compared with 115.0 in December. ATA recently revised the seasonally adjusted index back five years as part of its annual revision. “January’s data was a snap back to reality for anyone thinking the freight market was about to turn the corner,” said ATA Chief Economist Bob Costello. “Bad winter weather in January likely hurt volumes, not to mention sharp drops in a number of drivers of tonnage including retail sales, housing starts and manufacturing output.” December’s increase was revised down from our January 23 press release. Compared with January 2023, the SA index fell 4.7%, which was the eleventh straight year-over-year decrease. In December, the index was down 0.8% from a year earlier.
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UPS Releases 4Q 2023 Earnings

UPS announced fourth-quarter 2023 consolidated revenues of $24.9 billion, a 7.8% decrease from the fourth quarter of 2022. Consolidated operating profit was $2.5 billion, down 22.5% compared to the fourth quarter of 2022, and down 27.1% on an adjusted basis. Diluted earnings per share were $1.87 for the quarter; adjusted diluted earnings per share of $2.47 were 31.8% below the same period in 2022. For the fourth quarter of 2023, GAAP results include a total charge of $512 million, or $0.60 per diluted share, comprised of a non-cash, after-tax mark-to-market (MTM) pension charge of $274 million, after-tax transformation and other charges of $154 million, and a non-cash, after-tax impairment charge of $84 million related to our Coyote trade name in our truckload brokerage unit.
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4,600 kilometers for SCA’s electric timber truck

SCA's electric timber truck continues to transport timber between Gimonäs timber terminal and Obbola paper mill outside Umeå. It has now been in operation for over 1.5 years. – Everything is working as intended, and we receive inquiries from haulage companies and others who want to learn more about heavy electric vehicle transport, says Mikael Sundelin, Head of Business Development at Industrial Supply. Since SCA's unique electric timber truck was put into operation in June 2022, it has covered a distance of 4,600 kilometers, equivalent to more than one lap around the globe. Over a year of operation, the electric timber truck contributes to reducing carbon dioxide emissions by approximately 55,000 kg per year. With a capacity to carry 80 tons, the electric timber truck's daily task is to transport timber between Gimonäs timber terminal and Obbola paper mill outside Umeå. The round trip covers a distance of 30 km, and it completes approximately six rounds per day. The truck needs to be charged about two times during a working day.
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ATA Welcomes More Than $200 Million for Truck Parking Projects

The American Trucking Associations welcomed five major new federal investments by the Department of Transportation that will add approximately 1,000 truck parking spaces and make it easier for drivers to locate parking along key freight corridors in Florida, Missouri, Pennsylvania, California, Oregon, Washington and Wisconsin. “The severe shortage of truck parking continues to rank among drivers’ highest concerns, which is why we appreciate that Secretary Buttigieg and a growing number of states are making these projects a top priority,” said ATA President and CEO Chris Spear. “America’s highways are our shop floor. When drivers finish their shift, they deserve to know that they will be able to find a safe place to sleep that night. These significant investments in expanding parking capacity along some of America’s busiest freight corridors will help reduce supply chain bottlenecks, alleviate stress on truck drivers and make the roadways safer for all motorists.”
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Parts and Labor Costs Rose in the Third Quarter of 2023

American Trucking Associations’ Technology & Maintenance Council and Decisiv Inc. said that parts and labor expenses rose 1.9% during the third quarter of 2023, according to data released in the latest Decisiv/TMC North American Service Event Benchmark Report. “This return to increasing parts and labor costs highlights the fact that fleets must remain vigilant when it comes to managing their maintenance expense data,” said TMC Executive Director Robert Braswell. “This important parts and labor cost analysis report is an excellent tool to help Council members see how their operations are performing and plan accordingly.”
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ATA Truck Tonnage Index Increased 2.1% in December

American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index increased 2.1% in December after falling 1.4% in November. In December, the index equaled 115.7 (2015=100) compared with 113.3 in November. “While 2023 ended on a better note, truck tonnage remained in a recession as it continued to fall on a year-over-year basis,” said ATA Chief Economist Bob Costello. “With that said, for-hire contract freight, which is what comprises our index, in December was 2.6% above the trough in April. For the entire year, tonnage contracted 1.7% from 2022 levels. This makes 2023 the worst annual reading since 2020 when the index fell 4% from 2019, and the only year since 2020 that tonnage contracted.” Compared with December 2022, the SA index fell 0.5%, which was the tenth straight year-over-year decrease, albeit the smallest over that period. In November, the index was down 1.6% from a year earlier.
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Attacks on cargo ships in Red Sea causing volatility in supply chains

Disruptions caused by attacks on cargo ships in the Red Sea have once again created volatility in retail supply chains, leading to delays and increased costs. That's according to the Global Port Tracker report by the National Retail Federation and Hackett Associates. Jonathan Gold, NRF VP for supply chain and customs policy, noted that retailers are working with their carrier partners on mitigation strategies to limit the impact of the disruptions caused by the attacks, "but we are seeing longer transit times and increased costs as a result.” To help retailers navigate supply chain challenges, NRF 2024: Retail’s Big Show will feature a special one-day program — Supply Chain 360 Summit — on Sunday, Jan. 14, 10:00 a.m. - 3:45 p.m. (ET), at the Javits Convention Center, New York City.
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California’s Electric-truck mandates collide with Reality

California rang in the new year by delaying enforcement of its "Advanced Clean Fleets" Regulation, which requires trucking companies operating in the state to purchase an increasing percentage of electric trucks in the coming years. While enforcement was slated to begin this week, officials at the California Air Resources Board agreed to pause the registration and compliance requirements until the U.S. Environmental Protection Agency grants the regulation a green light to proceed. It's an inauspicious start for a program that's on a clear collision course with reality. Reporting from the Wall Street Journal validates what ATA has been telling lawmakers for many months: the charging infrastructure, power generation and transmission, product performance, and operational parity required for such a policy to succeed are nowhere near ready. The WSJ report illustrates how even drayage operators—those who run short-haul routes to and from ports and other intermodal facilities—are struggling to charge their equipment and maintain deliveries on time.
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ATA Truck Tonnage Index Decreased 1% in November

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 1% in November after increasing 0.8% in October. In November, the index equaled 113.7 (2015=100) compared with 114.9 in October. “We continued to see a choppy 2023 for truck tonnage into November,” said ATA Chief Economist Bob Costello. “It seems like every time freight improves, it takes a step back the following month. While year-over-year comparisons are improving, unfortunately, the freight market remains in a recession. Looking ahead, with retail inventories falling, we should see less of a headwind for retail freight, but I’m also not expecting a surge in freight levels in the coming months.” October’s gain was revised down slightly from our November 21 press release. Compared with November 2022, the SA index fell 1.2%, which was the ninth straight year-over-year decrease. In October, the index was down 2.4% from a year earlier.
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ATA Welcomes Funding to Expand Truck Parking in Wyoming, Iowa

The American Trucking Associations welcomed two major new federal investments by the U.S. Department of Transportation that will add nearly 400 truck parking spaces along key freight corridors in Wyoming and Iowa. “These projects in Wyoming and Iowa continue the momentum to alleviate the severe, nationwide shortage of truck parking, which consistently ranks as one of drivers’ top concerns,” said ATA President and CEO Chris Spear. “We are grateful that Secretary Buttigieg has continued to make Bipartisan Infrastructure Law funding available to expand truck parking, and we applaud Wyoming and Iowa for prioritizing these projects in their transportation planning. More states should step up and follow their example to improve the efficient movement of freight and enhance roadway safety for all motorists.”
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ATA Truck Tonnage Index Increased 1.1% in October

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 1.1% in October after declining 1.1% in September. In October, the index equaled 115.2 (2015=100) compared with 113.9 in September. Compared with October 2022, the SA index fell 2.1%, which was the eighth straight year-over-year decrease. In September, the index was down 4.1% from a year earlier. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 119.7 in October, 6.3% above the September level (112.5). In calculating the index, 100 represents 2015. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight as opposed to spot market freight.
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New Forecast Projects Continued Growth of Truck Freight

Among the key findings in ATA Freight Transportation Forecast 2023 to 2034 are: *Overall truck tonnage will grow from an estimated 11.3 billion tons this year to 14.2 billion tons in 2034. This represents 72.4% of the freight tonnage in 2023 and 72.6% of tonnage at the end of the forecast period. *Trucking’s revenues will grow from $1.01 trillion in 2023 to $1.51 trillion in 2034, which will account for 78.8% of the freight market. *In other modes: o As coal and bulk petroleum shipments wane over time, rail carload tonnage will fall from 11% of total freight to 10.1% by 2034. o Rail intermodal revenues will grow from $21.7 billion in 2023 to $35.2 billion in 2034. o Air cargo tonnage will grow from 17.6 million tons this year to 23.7 million tons in 2034. o Pipelines will see their share of freight tonnage grow from 9.8% in 2023 to 10.4% in 2034.
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ATA, State Trucking Associations Call on Governors to Provide Truck Parking Funds

The American Trucking Associations, through its federation of 50 state associations, called on the governors of every state to prioritize truck parking with their infrastructure spending priorities. In a letter sent to every governor, ATA and state trucking associations spelled out the numerous new resources provided by the federal government, including new funds from the Infrastructure Investment and Jobs Act, to improve and expand truck parking facilities. “Construction of new truck parking capacity at rest areas or adjacent to private facilities is eligible for funding, as are improvements that allow for increased parking capacity at nontraditional locations, such as weigh stations and commuter lots, when appropriate,” the letter said. “Some states have already utilized these resources to increase parking capacity or improve the operational efficiency of existing facilities.”
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ATA Truck Tonnage Index Fell 1.1% in September

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 1.1% in September after rising 0.2% in August. In September, the index equaled 113.9 (2015=100) compared with 115.2 in August. “After hitting a bottom in April, tonnage increased in three of the previous four months, gaining a total of 2.2% before September’s drop,” said ATA Chief Economist Bob Costello. “However, this freight market remains in flux, and the index contracted by 1.1% in September, which erased half of those gains. Additionally, the year-over-year decrease was the largest drop since November 2020 on a very difficult comparison – September 2022 – which was the previous cycle high. While it is likely a bottom has been hit in truck freight tonnage, there could still be choppy waters ahead as the freight market remains volatile.”
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ATA Honors 10 State Executives for Service to Industry

The American Trucking Associations recognized 10 state trucking executives for their time representing the industry with Trucking Association Executives Council Service Awards. “These STA Execs, along with so many of our state trucking association executives here today, work daily in their respective state capitals and localities to promote, preserve and protect the interests of our great industry,” said TAEC National Chair Shannon Newton, president and CEO of the Arkansas Trucking Association. “Politics at the state level versus the federal level is about as different as night and day. Whereas the legislative process at the federal level tends to get totally bogged down for myriad reasons, legislative initiatives in state capitals actually move – often without warning and rather quickly. This fast-paced environment presents many unique challenges for industry advocates, and that’s not even mentioning the never-ending association management challenges we all face.”
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ATA Truck Tonnage Index Rose 0.2% in August

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 0.2% in August after rising 1.1% in July. In August, the index equaled 115.3 (2015=100) compared with 115 in July. “The evidence is growing that tonnage hit bottom in April and continues its slow climb upwards,” said ATA Chief Economist Bob Costello. “However, year-over-year comparisons remain difficult as tonnage peaked in September of last year. As a result, it is unlikely that tonnage turns positive compared with a year earlier for at least a month or two longer. Most recently, freight continues to be mixed, with consumer spending and factory output flat to down.” July’s increase was revised higher from our August 22 press release. Compared with August 2022, the SA index fell 2.3%, which was the sixth straight year-over-year decrease. In July, the index was down 1.2% from a year earlier.
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Parts and Labor Costs Dropped in the Second Quarter of 2023

American Trucking Associations’ Technology & Maintenance Council and Decisiv Inc., said parts and labor expenses dropped during the second quarter of 2023, according to data released in the latest Decisiv/TMC North American Service Event Benchmark Report. “With rising build rates for new equipment and less mileage reducing the need to operate aging trucks, fleets are finally seeing a definite improvement in parts and labor costs,” said Decisiv President and CEO Dick Hyatt. “The data that Decisiv collects and analyzes for TMC on Vehicle Maintenance Reporting Standard system level codes points to a return to normalized trade cycles and more predictable service and repair costs. Along with greater stability, the highly detailed data and reporting enabled by Decisiv SRM allows fleets and service providers to focus on ways to continue to drive down expenses.”
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ATA Urges Congress to Establish National Framework for Automated Vehicles

American Trucking Associations President and CEO Chris Spear told the House Transportation and Infrastructure Committee that automated vehicle technology holds great promise to enhance highway safety, boost economic productivity, and support trucking’s essential workforce. In order to harness this technology’s full potential, Spear emphasized that regulations must be consistent to avoid a patchwork of rules that treat highway users differently. “What’s needed first is a national framework that encourages development, testing and deployment of technology, in direct support of interstate commerce,” Spear said in a hearing before the panel’s Subcommittee on Highways and Transit. “Federal guidance should treat commercial and passenger vehicles equally and require automated vehicles to achieve an acceptable level of safety and performance, rather than requiring the use of specific technologies.”
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FreightWaves gets it wrong on driver shortage (trucking.org)

FreightWaves CEO Craig Fuller calls the truck driver shortage a “myth” in a recent piece of self-promotion, but his assertion collapses under the weight of facts and data. Fuller claims the mythical shortage is an ATA fabrication—a narrative perpetuated for our convenience. Of course, we’re not alone in reporting this issue. Driver shortages are global in scope, with growing vacancies felt across the Americas, Asia, and Europe, and documented in IRU’s 2022 Global Driver Shortage Report: In Europe, driver shortages jumped by 42% from 2020 to 2021, with vacant driver positions reaching 71,000 in Romania, 80,000 in both Poland and Germany, and 100,000 in the UK. In Mexico, shortages rose by 30% to reach 54,000, while in China, they increased by 140%, reaching 1.8 million.
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ATA Truck Tonnage Index Decreased 0.8% in July

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 0.8% in July after falling 0.3% in June. In July, the index equaled 112.9 (2015=100) compared with 113.8 in June. June’s increase was revised lower from our July 18 press release. Compared with July 2022, the SA index fell 3%, which was the fifth straight year-over-year decrease. In June, the index was down 3.2% from a year earlier.
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