News
International Holidays Affect May Shipping Schedule
April 20, 2011
International holidays could delay shipments during May. Below is the list of countries and the dates when shipping will be shut down due to holidays in each respective country. Please plan accordingly.
| COUNTRY | MAY HOLIDAY DATE(S) |
| China | 1st and 2nd |
| Hong Kong | 2nd and 10th |
| India | 17th |
| Indonesia | 17th |
| Korea | 5th and 10th |
| Malaysia | 2nd and 17th |
| Singapore | 1st and 17th |
| Sri Lanka | 2nd, 17th and 18th |
TL Rates Trend Upward; No End in Sight
April 15, 2011
By Mark Montague, Industry Pricing AnalystDemand is up, capacity is tight. Result? Continued pressure on truckload rates. The pain - or gain, depending on your point of view - of rate inflation is being felt first and fastest on the spot market, compared to shippers' contract rates.
Although capacity shortfalls in the flatbed segment have been well reported, the van segment has actually been the one where rates have risen faster than any other over the past 15 months: van rates rose 10% in 2010 compared to 2009, while flatbed rates increased 4.4%. During that same period, reefer rates were up 6%. In the first quarter of 2011, van rates jumped 13%, while flatbeds increased by 11%. By comparison, in Q1 2011, reefer rates increased only 4% in advance of the peak season.
VAN - Spot market rates for vans were up by 4% in March, compared to February, and by 15% compared to March 2010. Van rates trended up across the country, led by Denver as well as two major California cities, Los Angeles and Stockton, which lagged in previous months due to severe weather that delayed the start of the spring produce season.
FLATBED - Rising rates in the flatbed segment were led in March by the Los Angeles market, with a 4.3% uptick. This did not include transcontinental lanes.
REEFER - Reefer rates increased by 2.2% for the month of March on the spot market, reversing a three-month decline. Outbound lanes from Dallas showed the most improvement, including lanes to Denver and Atlanta.
Welcome Mike Harris!
April 4, 2011
Mike Harris recently joined On Time Express as Vice President of Operations. Harris is a 23-year industry veteran with an extensive background in LTL, air freight forwarding, international and cross border operations.
During his career with NationsWay Transport Service, Harris gained valuable knowledge in sales as the District Sales Manager before being promoted to Regional Manager, where he garnered in-depth experience in successfully managing the day-to-day operations of a large regional facility. Harris' regional management and corporate field leadership experience were further defined at Eagle Global Logistics (Ceva) and, most recently, AIT Worldwide Logistics.
Harris also served on active duty with the 1st Marine Expeditionary Force in Operation Iraqi Freedom as a US Navy reserve officer in 2003. He is a graduate of The Ohio State University Fisher College of Business with dual degrees in Transportation and Logistics and Marketing.
"I am excited to join the On Time Express family," Harris said. "On Time Express is a 'best in class' transportation provider with employees dedicated to exceptional customer service. I am impressed with the company's vision and strength during the recent economy; this is a strong company with great opportunities. I am happy to be a part of On Time's growth plan as we continue to bring high level solutions to our existing customer base, on board new valuable customers, and solidify our vendor partnerships at every level. On Time Express is poised for solid strategic growth and profitability for many years to come and I am honored to be part of the executive team."
Bart Wilson, President/CEO of On Time Express announced Harris' addition to employees with these comments, "Mike fits. He understands our commitment to our customers because of his sales experience. He understands operations because he's managed large regional operations that focus on the same services we offer. He understands our commitment to integrity, honesty, and doing what's right. Furthermore, Mike has a proven track-record of achieving results. We are grateful to have him join us. The future is very exciting at On Time Express."
February Tonnage Rises 4.2%
March 28, 2011
U.S. truck tonnage improved from a year earlier for the 15th straight month, enough to allow fleet executives to pursue higher freight rates yet leave them with worries about how global events could hurt the domestic economy.
American Trucking Associations said its seasonally adjusted tonnage index rose 4.2% to 113.3 last month from 108.7 in February 2010.
However, the index declined from the January level of 116.6, and the preliminary report attributed the dip to severe winter weather.
The index, reported March 22, compares current activity to a base of 100 in 2000.
"I'm hearing a significant amount of positive news from fleets and that the largest concern continues to be the price of diesel fuel, not freight levels," said ATA Chief Economist Bob Costello.
The tonnage index is now back at pre-recession levels common in 2007 - it ranged from 110 to 116 that year - but Costello said it is still too early to proclaim the industry completed recovered. "Based on just tonnage, yes, we're darn close to it, but if you look loads hauled, that's not as robust. Loads have not come back as much," he said.
Source: Reiskin, Jonathan S. (2011, Week of March 28, 2011). Transport Topics, pp. 1
Truck Tonnage Surges 8%
February 28, 2011
Truck tonnage surged 8% in January from a year earlier, helped by continued growth in the manufacturing sector, pushing American Trucking Associations' tonnage index to its highest leve since January 2008.
The advance seasonally adjusted index reached 117.1, improving for the 14th consecutive month and rising at the fastest pace since April, ATA announced February 23. On a sequential basis, tonnage climbed 3.8% in January over December.
"Many fleets told us that freight was solid in January, although operations were a challenge due to the winter storms that hit large parts of the country," ATA's chief economist, Bob costello, said.
The index uses the freight volumes recorded in 2000 as the base level of 100.
Source: Watson, Rip. (2011, Week of February 28, 2011). Transport Topics, pp. 1
Diesel Rises 3.9 Cents to $3.573; Crude Oil tops $100 a Barrel
February 28, 2011
U.S. retail diesel prices continued to climb last week, rising 3.9 cents a gallon to $3.573, the Department of Energy reported, as crude oil topped $100 a barrel for the first time since October 2008.
Diesel has risen 13% in 12 consecutive weekly jumps. A year ago, the average cost of a gallon was $2.832, DOE's Energy Information Administration said after its February 21 survey of fueling stations.
The average cost of gasoline also continued to rise, jumping 4.9 cents a gallon to $3.189. It has risen in 11 of the past 12 weeks, and is 53.4 cents higher than the comparable week of 2010.
After closing at $86.20 a barrel on February 18 on the New York Mercantile Exchange, crude oil rose to nearly $101 on February 24 on worries about political turmoil in Libya, before closing at $97.28 that day.
Source: Reiskin, Jonathan. (2011, Week of February 28, 2011). Transport Topics, pp. 1
Trucking Blasts HOS Plan
February 21, 2011
Arlington, VA - The Transportation Department's new proposed hours-of-service rule is too complex, rigid, and would reduce the productivity of motor carriers, while making highways no safer, trucking industry and trade association executives and truck drivers told federal regulators last week.
Speaking at a Federal motor Carrier Safety Administration "listening session" on February 17, the industry representatives overwhelmingly agreed that the current hours rule is helping reduce truck-related traffic accidents.
FMCSA schedule the hearing after widespread industry objectives to last year's proposed revisions to the HOS rule, which was initially adopted in 2003. The 2003 rule, which revised the Depression-era regulation, lengthed allowed driving time one hour to 11 hours, cut the permitted work day to 14 hours and required a 10-hour break. It allowed drivers to "reset" their week after resting for 34 hours.
Source: Miller, Eric. (2011, Week of February 21, 2011). Transport Topics, pp. 1
Jobs Up 36,000 in January; Trucking Increases by 3,200
February 14, 2011
The United States added 36,000 jobs during January, and the for-hire trucking industry added 3,200 positions to its payrolls, the Department of Labor reported on February 4.
The report said the overall U.S. unemployment rate was 9%, the lowest since April 2009, down from 9.4% in December.
Total transportation and warehousing employment fell by 38,000 in January, "reflecting a sharp decline among couriers and messengers," Labor said. However, the gains in trucking boosted total employment for the industry to 1.259 million people.
Bob Costello, chief economist of American Trucking Associations, said January marked the 10th straight month of job creation within trucking, totaling 24,800 poistions.
Source: Kiel, Frederick. (2011, Week of February 14, 2011). Transport Topics, pp. 5
Diesel Jumps 7.5 Cents to $3.513 Pushed by Cold Wave, Egypt
February 14, 2011
Continuing cold weather across much of the United States and Europe and political unrest in Egypt helped push domestic fuel prices higher. The average retail cost of a gallon of diesel rose 7.5 cents to $3.513 a gallon last week.
The 10th straight weekly increase in diesel prices sent the fuel to a level 74.4 cents higher than it was during the comparable week last year, according to the Department of Energy.
In addition to the bone-chilling cold, fuel prices are rising because of "the political unrest in Egypt, where a lot of crude oil flows through the Suez Canal," said Brad Simons, president of Pathway Network, a subsidiary of Simons Petroleum, Oklahoma City.
The average price of regular gasoline increased 3.1 cents a gallon to $3.132, its ninth increase in the past 10 weeks, DOE reported February 7, after its weekly survey of fueling stations. Gasoline is now 48 cents more expensive than the comparable week last year, DOE said.
Over the past 10 weeks, diesel has climbed 35.1 cents a gallon, and gasoline has rise 27.6 cents.
Source: Kiel, Frederick. (2011, Week of February 14, 2011). Transport Topics, pp. 1
LTL 4Q Results Improve As Pricing, Tonnage Gain
February 14, 2011
Seven of the eight publicly traded less-than-truckload carriers reported improved financial performance in the fourth quarter, as pricing and tonnage gained across the industry, giving hope for better 2011 results.
Each of the carriers raised prices, measured in revenue per 100 pounds of freight. In addition tonnage rose.
"The positive change is that over-all most of the carriers are finding some pricing discipline," consultant Satish Jindel of SJ Consulting told Transport Topics on February 8.
Source: Watson, Rip. (2011, Week of February 14, 2011). Transport Topics, pp. 3
Diesel Fuel Prices On The Rise
January 14, 2011
The average price of U.S. retail diesel rose another 3.7 cents last week to $3.331 a gallon, the Department of Energy reported, or 26.4 cents higher than it was two months ago.
Diesel, which is at its highest level since October 2008, is also 53.4 cents above the comparable week of last year. Since remaining steady in early November, pump prices have skyrocketed.
The regular-gasoline price average increased as well, rising 1.8 cents to $3.07 a gallon, also its highest price since October 2008, DOE said after its Jan. 3 survey of fueling stations. The gasoline average is 40.5 cents higher than the corresponding week of 2010.
Source: Kiel, Frederick. (2010, Week of January 10, 2011). Transport Topics, pp. 5