Bob Costello, the chief economist for the American Trucking Associations, noted, “We’re no longer going to be deteriorating anymore. There’s a chance we are at the beginning stages of that cycle changing.”

The extensive downturn followed an unprecedented boom period influenced by the pandemic. The surge in consumer demand for goods during lockdowns drove significant freight volumes and elevated rates. This spike tested the limits of ports, rail systems, and trucking fleets, almost collapsing the entire supply chain and prompting many new trucking companies to enter the market.

However, the decline was swift and stark. As restrictions lifted, consumer expenditure shifted towards services such as dining and entertainment, reducing the demand for transported goods. This left retailers with excess inventory and trucking firms struggling with diminishing profits.

Renewed optimism is chiefly fueled by increased port activities. Despite high interest rates and persistent inflation, consumer spending remains strong, including both goods and entertainment. Cross-border trade stays robust as Mexico attracts nearshoring investments. Additionally, reduced inventory levels might soon need replenishment.

In April, U.S. ports processed the equivalent of 2.02 million 20-foot containers, up 13% from a year earlier. The National Retail Federation indicated that May’s port volume likely increased by around 8% to 2.09 million containers, the highest since August 2022. Although last year’s port volume declined by 12.8%, the recent surge in demand is now extending to the for-hire trucking market. May’s tonnage index showed a 1.5% year-over-year increase—the first such rise in 15 months. However, Costello urges caution, stating that one month doesn’t establish a trend.

Other challenges persist. Housing starts have dropped, impacted by a rise in the 30-year fixed mortgage rate to 7.25% from less than 3% in 2021. Manufacturing has been in contraction since late 2022, except for a brief improvement in March, according to the Institute for Supply Management.

Trucking capacity remains high, as many companies that joined the market during the boom are still operational. Government stimulus for small businesses and profits from the pandemic have kept many afloat despite current losses. The average carrier’s cost per mile is approximately $1.75, excluding fuel, while spot freight rates are around $1.55 per mile, according to Jared Weisfeld, chief strategy officer at the freight brokerage RXO Inc.

Approximately 30,000 trucking companies have exited the industry since the downturn began. While this number appears substantial, it represents a minor portion of the 350,000 trucking firms with operating authority, most of which run fewer than ten trucks, according to the Federal Motor Carrier Safety Administration.

“We’ve continued to see carrier exits,” said Derek Leathers, CEO of Werner Enterprises Inc. “That has led to a situation where we’re closer to the end than the beginning.” Werner plans to downsize its fleet by up to 6% this year.

Although there have been false starts before, the recent uptick in freight demand and decrease in trucking supply hint at a potential inflection point for the industry’s recovery. While timing remains uncertain, confidence in a forthcoming rebound is on the rise.

Source: Bloomberg

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Maui Mayor Richard Bissen has announced a phased reopening plan for west Maui and its hotels, with visitors allowed starting from October 8th. This plan comes after the area has supported disaster victims and provided accommodation to the 7,800 people displaced by the wildfires.

“In total, nearly 8,000 people — roughly 80% of the population affected by the disaster — have been receiving non-congregate shelter and support services in 40 hotels and other lodging since the disaster,” noted Gov. Josh Green’s office.

Maui residents have expressed concerns about being able to rebuild their homes and lives in the wake of the devastating Aug. 8 wildfires. The town of Lahaina and cherished Native Hawaiian areas, such as the Na ‘Aikane o Maui Lahaina Cultural Center, have been destroyed.

Rebuilding and removing fire debris are major obstacles for residents, businesses, and government agencies.

“Debris removal is occurring in phases to ensure the safety and cultural sensitivities of the affected communities,” according to the Federal Emergency Management Agency.

The only Maui locations that remain completely closed have been historic Lahaina Town and surrounding areas impacted by the wildfires.

President Joe Biden has approved additional federal funds for Hawaii to assist with wildfire debris removal and emergency protective measures. The funding will cover 100% of eligible costs for debris removal for a continuous period of 180 days, to be selected by the state within the first nine months.

Maui officials have outlined two phases for fire recovery. The first phase, which began in mid-September, involves the removal of hazardous materials and infrastructure assessment by the U.S. Environmental Protection Agency. The second phase, yet to be scheduled, will focus on the removal of approved fire-damaged materials and conducting environmental testing to ensure safety for property rebuilding.

Lahaina residents in Maui County are encouraged to return and assess their properties, although no specific date has been set as of October 2nd.

The Council for Native Hawaiian Advancement, in collaboration with the Hawaiian Trades Academy, has begun offering free workforce certification classes for Maui residents. These classes cover five different types of hazardous material handling and rebuilding-related jobs. Local companies will participate in job placement efforts. The certification courses include Occupational Safety and Health Administration training for construction jobs, ranging from basic workplace hazard awareness to a more comprehensive course for safety directors and field supervisors on OSHA compliance and safety protocols.

In addition, there will be three Hazardous Materials Training Programs designed for worker safety and compliance.

• “Handling Dangerous Materials with Care” – Get informed on the potential risks and best practices for dealing with hazardous substances at home or work.
• “Stay Safe at Hazardous Waste Sites” – This program is perfect for workers with limited time in uncontrolled waste areas. Learn essential safety procedures to minimize exposure to hazardous substances.
• “Kick-start Your Hazardous Waste Career” – Ideal for newcomers to Hazwoper jobs, this course equips you with the skills to properly perform cleanup duties and comply with OSHA’s standards.

The academy has been empowering economically and socially disadvantaged Hawaiian communities with workforce development education, leading to increased household incomes for the past four years.

“We need to make sure that our Maui residents and Maui-based companies are front and center when these job opportunities become available. Our classes will help to ensure that they are prepared to take on that task,” said Kuhio Lewis, council CEO. “These workforce development courses will provide opportunities for individuals who have lost their jobs as a result of the fires. We want to help empower the Maui community to move forward together.”

The council is introducing workforce training opportunities for CDLs, carpentry, and forklift safety. If you’re a resident of Maui and interested in these programs, simply fill out the online form at hawaiiancouncil.org/maui-workforce-dev to express your interest.

“We are also looking for local companies who want to provide training for their employees. We can help facilitate group training classes for them,” added Lewis.

There are also plans to offer a six-week CDL A class. This comprehensive program includes everything you need to obtain a commercial learner’s permit, ace the entry-level driver training test, and master the skills behind the wheel. To join, all you need is to be 21 or older, hold a valid driver’s license, and have a current medical examiner’s certificate. Plus, they’ll be offering a two-day CDL hazmat endorsement course for those who want to add a hazardous materials endorsement to their CDL.

Source: Transport Topics

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