Motor Cargo Inc

Tonnage Jumps in September

Truck tonnage increased on both a sequential and year-over-year basis in September, recording a 2021 high mark amid an environment in which a shortage of drivers and trucks is keeping rigs fully loaded on most runs, American Trucking Associations reported Oct. 19.

The ATA For-Hire Truck Tonnage Index was 112.9 in September, an increase of 1.7% compared with year-ago levels, and up 2.4% compared with August’s 110.2 result. For the purposes of the index, the year 2015=100.

“September’s sequential gain was the largest in 2021,” ATA Chief Economist Bob Costello said. “It is good that tonnage rose in September, but it is important to note that this is happening because each truck is hauling more, not from an increase in the amount of equipment operated as contract carriers in the for-hire truckload market continue to shrink from the lack of new trucks and drivers.”

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https://www.ttnews.com/articles/tonnage-jumps-17-september

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Fixing Supply Chain Won’t Be Easy, Experts Say

Fixing the broken supply chain will take time and patience, substantial amounts of money, imagination by key leaders in the transportation and logistics industry, and significant policy changes.

Those are the conclusions of experts closely watching the upcoming holiday shopping season, but, as they said, the rush to buy items amplifies how stretched the system is.

“What we have is a storm within a storm,” University of Houston Logistics Professor Margaret Kidd told Transport Topics. “Consumers have insatiable demand, and consumers are spending. E-commerce numbers through the second quarter this year are up 57% from two years ago.”

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https://www.ttnews.com/articles/fixing-supply-chain-wont-be-easy-experts-say

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FMCSA issues new driver-ban rules for drug and alcohol abusers

States have until November 2024 to comply with a new requirement that they ban drivers with drug and alcohol violations from operating a truck before the drivers complete the return-to-duty process.

The rule is scheduled to be posted in the Federal Register on Thursday. It resulted from a 2020 Federal Motor Carrier Safety Administration proposal requiring state agencies to stop issuing, renewing or upgrading commercial driver’s licenses (CDLs) or commercial learner’s permits (CLPs) to drivers with drug and alcohol violations, as well as to downgrade drivers’ CDL and CLP driving privileges within 60 days of notification.

“The CDL downgrade requirement rests on the simple, but safety-critical, premise that drivers who cannot lawfully operate a CMV because they engaged in prohibited use of drugs or alcohol or refused a test should not hold a valid CDL or CLP,” according to FMCSA.

In issuing the rule, FMCSA explained that because most state driver’s licensing agencies (SDLAs) do not receive drug and alcohol violation information about drivers who are licensed in their state, some drivers who are not supposed to be on the road continue to operate trucks with valid licenses. “The rule closes that knowledge gap by ensuring that all SDLAs are able to determine whether CMV drivers licensed in their State are subject to FMCSA’s CMV driving prohibition,” FMCSA stated.

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https://www.freightwaves.com/news/fmcsa-issues-new-driver-ban-rules-for-drug-and-alcohol-abusers

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Getting climate kickbacks from trailer telematics, tank monitoring

Investors, customers and employees are not only concerned with economic practices and financial results of motor carriers. They also want to know what their companies are doing to reduce their environmental impacts.

Some publicly traded motor carriers release annual reports on Environmental, Sustainability and Corporate Governance (ESG), which has become a centerpiece of corporate identity.

Disclosing climate data is already common for motor carriers. Many are benefitting from shippers and 3PLs who are interested in their fuel-saving efforts and achievements that are shared publicly through the EPA Smartway Carrier Partner program.

Within a few years, publicly traded motor carriers might be required to submit emissions reports to the Securities and Exchange Commission (SEC) as the agency is considering more climate-disclosure regulation now that investors are flocking towards climate friendly and socially conscious stocks.

Meanwhile, the EPA is working on a new greenhouse gas emissions standard for heavy-duty diesel engines under the direction of President Joe Biden.

All these pressures and more have made sustainability a concern for fleet owners and executives. When evaluating the latest technology to manage trailer assets, the primary concern is to sustain their business model by improving asset operating ratios and achieving environmental goals.

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https://www.freightwaves.com/news/getting-climate-kickbacks-from-trailer-telematics-tank-monitoring

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August Truck Tonnage Posts First Monthly Gain Since March

Truck tonnage in August notched its first sequential monthly gain in five months, and dipped just slightly on a year-over-year basis, American Trucking Associations said.

The ATA For-Hire Truck Tonnage Index rose 0.5% in August compared with July, registering a seasonally adjusted 110.3, the federation announced Sept. 21. Compared with August 2020, the index saw a 0.5% decline.

For the purpose of the index, the year 2015 = 100.

“August’s monthly gain, while small, was the first since March,” ATA Chief Economist Bob Costello said. “It is important to remember that ATA’s tonnage data is dominated by for-hire contract freight, with a very limited amount of spot market freight. I continue to believe that tonnage has not recovered to pre-pandemic levels for two main reasons — broader supply chain issues, like semiconductor shortages, as well as industry-specific difficulties, including the driver shortage and lack of equipment.”

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https://www.ttnews.com/articles/august-tonnage-dips-slightly-year-over-year

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Hiring Owner Operators!

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Up 5% may not be enough for truckload rates in 2022

The plus-5% placeholder suggested as the starting point for contractual truckload negotiations in 2022 may prove too light according to trucking executives.

Appearing at a Morgan Stanley (NYSE: MS) investor conference, heads from some of the nation’s largest fleets said rates will likely be materially higher again next year, following a mid-teen percentage increase this year. Difficulties finding drivers, other capacity constraints and rising costs are the catalysts.

Up 5% would be ‘disappointing’
Asked if he would be disappointed with a 5% increase next year, Schneider National (NYSE: SNDR) President and CEO Mark Rourke said, “I’d put that on the disappointing side of the equation.”

He said that every metric Schneider uses to gauge fleet performance remains “strong” and that it is hard to observe traditional seasonal patterns as demand has been in peak mode for more than a year now.

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https://www.freightwaves.com/news/up-5-may-not-be-enough-for-truckload-rates-in-2022

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Interested in $1700
Minimum Weekly as
OTR Company Driver?

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Carriers, Contractors Voice Support for Keeping DOL Rule

Motor carriers and independent contractors in written comments expressed objection to a U.S. Department of Labor proposal to withdraw a rule designed to clarify the federal standard for determining if a truck driver is a contractor or employee.

The agency in January said the rule — issued that month — was designed to promote “certainty for stakeholders, reduce litigation and encourage innovation in the economy.” The proposal to drop the rule drew more than 1,000 comments.

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https://www.ttnews.com/articles/carriers-contractors-voice-support-keeping-dol-rule

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Success usually comes to those who are too busy to be looking for it.

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All progress takes place outside the comfort zone.

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Freight boom is not without downsides for carriers

Driver recruiting problems are limiting carrier growth while the cost of operating is growing at a faster rate than ever. A similar scenario played out at the end of the 2017-18 freight boom. Cost inflation from insurance, maintenance, equipment and wages lasted beyond the yearlong freight boom that saw spot rates surge to all-time highs for an unprecedented amount of time. Capacity flooded the space and demand ceased to grow as the overstimulated market took a breath. With a similar scenario playing out in 2020-21, carriers need to be mindful of the lessons of the past.

For those who have not been watching, freight demand exploded in the back half of 2020, leading to shippers bidding up transportation rates to record levels on nearly every mode.

Containers that cost $1,400 to ship from China to Los Angeles in 2019 now cost nearly $5,000, according to the Freightos Baltic Exchange.

The $2,000 cost to move a container by rail from Los Angeles to Chicago in late 2019 is now as much as $4,800, according to FreightWaves’ Intermodal Spot Rate Index.

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https://www.freightwaves.com/news/freight-boom-is-not-without-downsides-for-carriers

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I find that the harder I work, the more luck I seem to have.

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The future depends on what you do today.

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FMCSA: Beware of Companies Posing as Government Agencies

Federal Motor Carrier Safety Administration officials posted a warning to truckers on April 8 to be aware of “predatory” companies that pose as government agencies.

The message came one day after the Iowa attorney general issued a news release announcing it reached an agreement with a Texas company that agreed to refund money to any Iowa truck drivers that paid it $149 to submit federal documents that can be filed for free.

The company, Compliance Processing Group of Frisco, Texas, sent past-due notices to Iowa truck drivers under the name FMCSA Compliance Processing Group. The letters warned that the truckers must “contact us immediately” or risk fines of $1,000 a day — for a total of up to $10,000 — and risk being taken out of service, “per the Federal Motor Carrier Safety Administration.”

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https://www.ttnews.com/articles/fmcsa-beware-companies-posing-government-agencies

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Guaranteed $1,700 weekly for 2,800 miles

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What will CVSA inspectors be checking during annual safety blitz?

Truck drivers and fleets have a month left to prepare for the Commercial Vehicle Safety Alliance’s (CVSA) annual 72-hour safety blitz, which is set for May 4-6.

CVSA said inspectors throughout North America will focus on two main inspection categories during the safety blitz: vehicle mechanical fitness, concentrating on lighting, and an examination of driver operating requirements, with an emphasis on hours of service (HOS).

According to Federal Motor Carrier Safety Administration (FMCSA), the top vehicle violation in the U.S. in 2020 was for having an inoperable vehicle lamp, which accounted for over 12% of all vehicle violations and more than 4% of all out-of-service vehicle violations.

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https://www.freightwaves.com/news/what-will-cvsa-inspectors-be-checking-during-annual-safety-blitz

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Easter Greetings to All!

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Independent contractor definition battles may further complicate lawsuits over lease purchases

With the definition of independent contractors (ICs) pinballing around the three-legged stool of the states, Washington and the federal courts, there’s a particular group of truck drivers with an additional level of uncertainty: those operating on lease purchases.

Whether a driver on a lease purchase program is truly independent is a central feature of a number of lawsuits making their way through the courts — including several filed by California attorney Robert Boulter, whose specialty in franchise law has branched out into a niche of lease purchase litigation.

Truck lease contracts have long been controversial. They are similar to leasing a car in that the owner of the vehicle is the company leasing out the vehicle. The person behind the wheel — often a sole truck driver who has entered into a lease — is making monthly payments that over time will work down the purchase price of the vehicle.

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https://www.freightwaves.com/news/independent-contractor-definition-battles-may-further-complicate-lawsuits-over-lease-purchases

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February Tonnage Takes Winter Weather Hit

Severe winter weather took a toll on truck tonnage in February, according to American Trucking Associations.

The ATA For-Hire Truck Tonnage Index for the month declined a seasonally adjusted 5.9% to 110 compared with 119.1 a year ago, and fell 4.5% compared with January. That month, the index measured 115.2.

For purposes of the index, the year 2015 = 100.

ATA Chief Economist Bob Costello said the February declines are more an indication of the troubles trucking companies faced during winter storms that hit the country last month than they are a sign of weak economic conditions. “February’s drop was exacerbated — perhaps completely caused — by the severe winter weather that impacted much of the country during the month,” Costello said. “Many other economic indicators were also soft in February due to the bad storms, but I continue to expect a nice climb up for the economy and truck freight as economic stimulus checks are spent, and more people are vaccinated.”

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https://www.ttnews.com/articles/feb-truck-tonnage-hurt-severe-winter-weather

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Great teams make great results.

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Guaranteed $1,700
weekly for 2,800 miles

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Motor Cargo, INC is looking to fill a position for a driver safety advisor at our Lynwood, IL yard.
We are looking for a person with at least 6 months of experience

Applicants must meet the following requirements:
Basic knowledge of motor carrier rules and regulations
Basic knowledge of computer skills
Ability to communicate verbally, in person and through e-mail, with employees, customers and vendors.
Ability to work well and communicate with peers in group settings
Be organized and able to multitask on short and long term projects
Advanced and proficient in reading, writing and speaking the English language
Current or ex-drivers that do not wish to drive anymore are encouraged to apply! CDL not necessary!

Job duties include, but are not limited to:
Keeping track of maintenance, registration and insurance requirements of individual trucks and trailers
New driver orientation and check rides
Scheduling and review of motor vehicle records, previous employment and drug tests
Review of current drivers’ paperwork, log books, Bill of ladings etc.
Assistance in handling insurance claims

Job description:
Monday – Friday 9am – 5pm
Saturday by appointment, not every Saturday is required
Starting pay $19 / Hour

Severe storm outbreak developing in South

Several southern states are in the target zone for severe thunderstorms and tornadoes the next two days. Truckers will have to dodge the dangerous weather from the Plains all the way to the Carolinas.

Many, if not all, the dynamics needed for a widespread outbreak are coming together — warm surface temperatures with much colder air aloft, ample moisture, a strong jet stream, as well as plenty of wind shear (increasing wind speeds with height, along with shifting wind direction with height).

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https://www.freightwaves.com/news/severe-storm-outbreak-developing-in-south

https://motorcargoinc.com/

Opportunities don't happen. You create them.

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Train your mind to see the good in every situation.

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