Transportation

Survey of transportation leaders finds most expect plenty of freight capacity.

Logistics Management Group News Editor Jeff Berman recently spoke with Michael Farlekas, CEO of Austin, Texas-based connected supply chain software platform services provider e2open. Farlekas provided Berman with an overview of various topics, including: a return to supply chain normalcy; inventory management, and sourcing options for shippers, among others.

The company said the new mobile app is a major part of its software roadmap.

Total February volume—at 1,248,569 units—fell 7.3% annually. Trailers—at 61,211—saw a 27.6% annual decline, and domestic containers—at 611,460—were down 4.3%. All domestic equipment, which is comprised of trailers and domestic containers, were down 7.0%, to 672,671. ISO, or international, containers—at 575,898—dropped 7.6%.

Logistics Management Group News Editor Jeff Berman recently spoke with Adam Satterfield, CFO of Thomasville, North Carolina-based national less-than-truckload (LTL) carriers Old Dominion Freight Line about various industry trends and themes, including: the current state of the LTL market, the freight economy, rates and pricing, and supply chain shifts, among others.

DSV said that the objective of these acquisitions are three-fold: to augment its position within the semiconductor industry; align with its new Phoenix-Mesa Gateway Airport operations; and support its growing cross-border services into Latin America. It added that these acquisitions are expected to be made official next month.

The ATA’s advanced Seasonally Adjusted (SA) For-Hire Truck Tonnage Index, for February, came in at 118.4 (2015=100), for a 1.2% increase, over January’s 117 reading.

Phoenix-based Knight-Swift Transportation, already the biggest player in the TL market at $4.5 billion revenue last year, is buying Chattanooga, Tenn.-based U.S. Xpress, which ranked ninth in TL revenue last year at $2.2 billion. The deal is valued at $808 million, including assumption of $484 million of debt.

The American Trucking Associations (ATA) expressed what it called its “grave concerns” about media reports that the Environmental Protection Agency (EPA) may be on the verge of granting the state of California waivers to implement potentially harmful and unrealistic emissions rules on the industry. Under California rules, new Class 8 heavy truck models would be zero-emission next year. Diesel and gasoline-powered drayage trucks must retire after 18 years to guarantee that they meet a zero-emission requirement by 2035.

The national average decreased 6.2 cents, to $4.185, following a 3.5-cent decline, to $4.247, for the week of March 13.

The Port of Los Angeles reported that February volume—at 487,846 TEU (Twenty-Foot Equivalent Units)—were down 43% compared to February 2022. The Port of Long Beach reported that total February volume—at 543,675 TEU—dropped 31.7% annually

For January, the most recent month for which data is available, the TCI came in at -1.71, a significant improvement over December’s -6.1 and November’s -7.94. That was preceded by October’s -11.25, its lowest level since the April 2020 all-time low, at -28.66. The September TCI reading came in at -2.35.

Rail carloads—at 229,246—fell 1.5% annually, and intermodal containers and trailers—at 229,383—fell 13.0%.

The long-awaited decision regarding the acquisition of Kansas City Railway Company (KCS) by Canadian Pacific (CP) reached its expected outcome today, with the Surface Transportation Board (STB), an independent adjudicatory and economic-regulatory agency charged by Congress with resolving railroad rate and service disputes and reviewing proposed railroad mergers, saying it has approved the $31 billion deal, which will go into effect on April 14.

February’s van freight TVI—at 207—fell 8%, from January to February, and was down 5% annually. The refrigerated (reefer) TVI—at 162—was down 7.9% compared to January and off 4.7% annually. And the flatbed TVI—at 217—was in line with January’s 218 reading and up 7.9% annually. DAT observed that these lower February TVI readings are not uncommon, due to February having fewer days.