While optimism about future prospects has grown, Lee Klaskow, Senior Freight Transportation and Logistics Analyst at Bloomberg Intelligence, noted a higher number of carriers are planning to exit the industry compared to prior surveys. Klaskow indicated that a quicker pace of carrier exits could bring the trucking market closer to equilibrium sooner, potentially improving rates next year.

Uncertain Futures and Industry Exits

The survey highlights ongoing uncertainty. Around 15% of carriers expect to exit the industry within the next six months, up by 6 percentage points from Q2. The slow reduction in capacity continues to put pressure on the market. However, accelerating the exit of excess capacity could spur a rise in spot rates and enhance the rate environment in 2025.

“Carriers are optimistic that the toughest times are now behind them,” said Kendra Tucker, CEO of Truckstop.

Spot rates, which remained under considerable pressure in Q3—falling by an average of 17% (excluding fuel)—may soon see improvement. Increased positivity among carriers is evident as 29% now anticipate rate increases within the next three to six months, marking a 6% leap in optimism compared to three months ago.

Rate Recovery in Sight

There are already signs of impending rate adjustments among major carriers. Old Dominion Freight Line recently announced a general rate hike of 4.9%, set to take effect in December. Todd Polen, Vice President of Pricing Services, explained the increase was designed to offset rising costs tied to real estate, equipment upgrades, and employee benefits.

Publicly traded carriers echoed this optimistic outlook during third-quarter earnings calls. Werner Enterprises expressed similar expectations, with CEO Derek Leathers stating, “It is our expectation as we look into 2025 that the time for rates to be going up is upon us. The question is the magnitude, and I think it’s too early to tell.”

Knight-Swift Transportation CEO Adam Miller projected modest increases toward the latter stages of the bid season, potentially reaching high single-digit growth. “There’s still a long way to go to recapture margins and bring public companies back closer to their historical levels,” Miller said.

Covenant Logistics has been proactive in raising rates multiple times last quarter, with plans for further increases in 2025. “We’ll propose another 2-4% increase during the current bid season and an additional 2-3% in the second half of next year,” said CEO David Parker. “I think we’ve got relationships enough with our customers that we can be successful in getting some.”

Signs of a Balancing Market

Indicators suggest the trucking market may be nearing equilibrium. Truckstop’s Market Demand Index for North America rose by 13% year-over-year in Q3, marking the third consecutive quarter of improvement.

While carriers noted weaker shipment volumes in Q3—56% reported lower demand compared to last year—the sentiment for the future is shifting. Roughly 40% of surveyed carriers anticipate increased volumes over the next three to six months, a 7% jump from Q2.

This growing confidence may also boost capital investments, with 24% of carriers planning to purchase new equipment within the same timeframe. However, weak demand remains a concern, with 34% of respondents citing it as a barrier to acquiring new assets.

A Changing Landscape Moving Toward 2025

While challenges remain, carriers’ outlook is steadily improving. For those still navigating this turbulent environment, being prepared to adapt will be key. With demand recovery on the horizon and the potential for rising rates, carriers who can weather the storm now may find themselves in a more favorable market landscape as early as 2025.

Businesses and carriers alike will need to strategize for this transition, keeping an eye on key indicators to stay ahead of the curve.

Source: Commercial Carrier Journal

The post Survey Reveals Rising Optimism Among Carriers Despite Persistent Challenges appeared first on Truck Drivers USA.

The survey aimed to understand fleet life cycle strategies and gauge awareness of the upcoming CARB prebuy mandate. The results, shared at the Advanced Clean Transportation (ACT) Expo in Las Vegas from May 20-23, indicate that truck procurement and life cycle management remain critical topics, especially in light of the anticipated CARB mandate. This mandate is expected to cause a major increase in truck purchases between 2025 and 2027, potentially raising the cost of diesel trucks by $25,000 to $30,000 per unit.

Given the pressing issue of aging fleets, over 3,000 transportation fleet executives were surveyed between April 29 and May 10, 2024. Findings revealed that 71% of respondents operate trucks older than five years. When asked about trucks from model year 2019 or earlier, 62% reported having up to 50 such vehicles, a noticeable increase from last year’s 37%.

Despite the need for truck replacements, 23% of respondents were either unaware of or uncertain about the CARB mandate. However, 68% acknowledged that the mandate would lead to increased truck purchases leading up to 2027. Although many fleets currently run on a five-year or longer life cycle, 68% felt it necessary to replace up to half of their fleet within the next two to three years, indicating a trend toward shorter life cycles.

Approximately 75% of respondents plan to replace up to half of their fleet in the next two to three years. While 36% have a CARB prebuy procurement plan, 44% either lack a plan or are unsure if one exists.

Fleet Advantage described this as an alarming sign that many fleets are unprepared, potentially facing severe financial impacts.

In terms of future procurement trends, 57% of fleets plan to replace aging vehicles methodically, ensuring they refresh equipment consistently without overspending on new trucks all at once. About 20% will maintain their current replacement cycle, regardless of additional CARB costs. Meanwhile, 23% plan to keep their existing trucks a bit longer.

Brian Antonellis, Senior Vice President of Fleet Operations at Fleet Advantage, emphasized the importance of understanding the CARB mandate’s significant implications for fleet procurement and finances. He stressed the need for organizations to leverage data technology and analytics to develop a multi-year procurement strategy, maximizing total cost of ownership and promoting efficiency and sustainability.

Source: The Trucker

The post Findings from Fleet Advantage’s Industry-Wide Survey on Truck Replacement Trends appeared first on Truck Drivers USA.

“The worst may be near for the North American truckload spot market,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “Capacity could drop as rates hover near or below operating costs, which is crucial for the spot market to reach equilibrium.”

The 4Q23 Truckload Survey reveals the following key findings:

1. Demand challenges may be stabilizing: Despite ongoing pressure on demand during the fourth quarter, 68% of respondents reported lower volume, and 23% indicated that loads remained flat. However, a significant portion (40%) of respondents expressed the belief that current demand has hit its bottom, projecting a period of flat volume over the next 3-6 months. This marks a 10-percentage-point increase compared to the 3Q survey.
2. Reluctance in tractor purchases: Carriers remain cautious about acquiring additional tractors, with only 14% considering a purchase in the next six months. A substantial 44% identified weak demand as the primary reason for refraining from equipment purchases.
3. Potential bottoming of spot rates: Respondents largely perceive that spot rates, excluding fuel surcharges, have reached a plateau, experiencing an average 14% drop in 4Q. About 46% anticipate these rates to remain flat in the coming 3-6 months, while 32% foresee further declines, and 22% expect an improvement.
4. Resilience among carriers: Against the backdrop of a soft economy and challenging comparisons, loads decreased by an average of 13% in the fourth quarter. This uncertainty has left 43% of owner-operators unsure about their status in six months, with 12% contemplating leaving the industry.

These survey insights provide a snapshot of the current sentiments and expectations within the trucking industry, highlighting both challenges and potential stabilization in various aspects of the market.

“We share the sentiments of our customers and hold an optimistic outlook that spot market conditions will improve this year,” said Kendra Tucker, chief executive officer, Truckstop. “Built on top of the most trusted freight network in North America, Truckstop is committed to empowering carriers with our unmatched portfolio of technology solutions they need to run their business in this dynamic landscape.”

Source: The Trucker

The post Survey Points to the End of Spot Market Challenges appeared first on Truck Drivers USA.

Key changes include:

1. Allowing CDL skills tests in a state different from the applicant’s home state.
2. Permitting commercial learner’s permit holders, post CDL skills test, to operate commercial vehicles on public roads without a qualified CDL holder in the passenger seat.
3. Eliminating the 14-day waiting period for the CDL skills test after the initial issuance of a commercial learner’s permit.
4. Imposing training, certification, and record-check standards on third-party knowledge examiners, aligning them with state knowledge examiners.

The Owner-Operator Independent Drivers Association advocates for strengthening driver training requirements, while truck safety groups express concerns.

“There certainly may be some areas to improve the CDL administration process conducted by the states,” said Jay Grimes, OOIDA’s director of federal affairs. “However, any changes should not sacrifice necessary skills testing or driver training. OOIDA has long expressed opposition to waiving requirements for a CDL holder to accompany a commercial learner’s permit driver in the front seat. Far too many drivers are entering the industry without the proper training to safely operate a CMV. Once again, FMCSA should be finding ways to further bolster training requirements, not weaken them.”

FMCSA asserts that the changes won’t compromise safety and will ensure the integrity of third-party CDL knowledge testing.

“The agency proposes to improve the efficiency and convenience of obtaining a CDL by increasing flexibilities in certain CDL licensing processes, without negatively impacting safety,” FMCSA said.

States would be obligated to include third-party knowledge examiners in auditing and monitoring processes.

To provide feedback on the proposal, visit Regulations.gov and enter Docket No. FMCSA-2023-0015. Comments are accepted until April 2.

Source: Land Line

The post FMCSA Seeks Driver Comments on CDL Requirements appeared first on Truck Drivers USA.

Transportation entities such as for-hire trucking companies, private fleets, transportation intermediaries, railroads, ocean carriers, equipment manufacturers, and technology firms are encouraged to submit their workforce’s gender diversity statistics.

Participating companies will receive a complimentary executive summary of the 2024 WIT Index, facilitating a comparison of their gender diversity initiatives with industry peers.

In the previous year’s 2023 WIT Index survey, notable findings highlighted a significant presence of women in leadership roles. Key statistics included 31.6% of women occupying C-Suite/executive positions, 36.9% in supervisory leadership roles, and 28.4% serving on boards of directors. Additionally, the survey revealed that within participating companies, 12.1% of professional drivers were women.

“Since 2016, when the Women In Trucking Association first launched the WIT Index, the percentages of women in key roles within the industry have been steadily rising,” said Jennifer Hedrick, president and CEO of WIT. “We created the WIT index to monitor the industry’s progress in gender diversity among all roles, including corporate leaders and supervisors, drivers, technicians, safety directors and human resources. Maximum participation by companies involved in trucking is critical to the success of this vital research.”

The live survey, accessible until April 1, 2024, can be completed at www.womenintrucking.org/index.

Source: The Trucker

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Driver detention, defined as the time spent waiting at shipper or receiver facilities outside of the loading/unloading process, has long been a persistent challenge for professional drivers across the nation. Recognizing the gravity and importance of this issue, ATRI’s Research Advisory Committee (RAC) has pinpointed the necessity for fresh research that meticulously and carefully captures the widespread adverse effects of driver detention, extending its impact out to carriers, truck drivers, shippers, and the overall economy.

The survey is concise yet comprehensive, balancing not being overwhelming while still pulling all necessary information. Its primary purpose is to seek insights from carriers regarding their firsthand experiences with detention and its correlation to their overall operational dynamics. Carriers are encouraged to provide details on the challenges posed by detention and articulate their strategies for mitigating its impact.

In the coming months, ATRI plans to unveil two additional surveys as part of this comprehensive research initiative. These subsequent surveys will be tailored for company drivers and shippers/receivers, respectively, ensuring a holistic examination of all the aspects of driver detention and how it impacts each part of the industry.

Motor carriers and owner-operators are invited to complete all of the surveys involved in this research and contribute valuable perspectives and data. The collective insights gained from these surveys aim to illuminate the intricate aspects of driver detention and pave the way for informed solutions that benefit the entire trucking industry. To participate, click here.

Source: Commercial Carrier Journal

The post Carrier Input Wanted on Possible Inputs of Detention Time appeared first on Truck Drivers USA.

The survey, identified as a top priority by ATRI’s Research Advisory Committee, seeks input from both men and women truck drivers to identify and contrast the unique challenges faced by women in the industry. Beyond gender-specific barriers, the research will also delve into broader challenges encountered by drivers during training, on the road, and at parking facilities.

To ensure a well-rounded understanding, the survey invites perspectives and experiences from drivers at various stages of their careers, covering aspects such as considerations when contemplating a trucking career, challenges faced while obtaining a Commercial Driver’s License (CDL), and issues encountered while actively working as a truck driver. For those who have exited the industry, the survey seeks insights into the reasons behind their departure.

“Once again ATRI is providing truck drivers the opportunity to provide input on critical research that will ultimately make our workplace better. I strongly encourage my fellow drivers to take a few minutes to complete ATRI’s survey and make our collective voice heard,” said Rhonda Hartman, a truck driver for Old Dominion Freight Line and an America’s Road Team Captain.

Truck drivers, both men and women, are encouraged to contribute to this research by participating in the confidential survey available online. The survey will remain open until Feb. 2.

Source: Truckers News

The post Your Voice is Needed: New Survey Asks About Barriers for Females Joining Trucking Industry appeared first on Truck Drivers USA.

The FMCSA has announced that it will make each petition for waiver available in the Documents section of the relevant docket. The agency is seeking public input on any issues raised in these waiver petitions or any other pertinent concerns. Commenters are specifically asked to address several key points:

• The impact of MRB rule enforcement on the health and safety of drivers.
• Whether enforcement of state MRB rules would worsen truck parking shortages.
• Whether a state’s MRB rules would discourage companies from operating within the state.
• Whether MRB enforcement would weaken or affect the resilience of the supply chain.

Comments can be submitted on the regulations.gov website by searching for Docket Nos. FMCSA-2018-0304 (California) and FMCSA-2019-0128 (Washington). The comment period will be open for 60 days starting on Dec. 26.

It’s worth noting that in August, the FMCSA announced its intention to consider petitions for waivers from the preemptions. On Dec. 21, 2018, the FMCSA granted petitions from the American Trucking Associations and the Specialized Carriers and Rigging Association, determining that California’s MRB rules are preempted by federal hours of service rules. On Nov. 27, 2020, a petition from the Washington Trucking Association was granted, with the FMCSA determining that Washington’s MRB rules are also preempted by federal regulations. The basis for these preemptions was that the states’ MRB rules were deemed more stringent than federal regulations and met the potential criteria for preemption under the U.S. code.

Public engagement from truck drivers is a crucial part of the industry’s rule-making process. These comment periods allow diverse perspectives and concerns to be considered. This opportunity for input emphasizes that each voice holds the potential to influence the outcome, ensuring that regulations are not only effective but also reflective of the best interest of the entire industry.

Source: Commercial Carrier Journal

The post FMCSA Seeks Trucker Opinion on Meal and Rest Break Laws appeared first on Truck Drivers USA.

Unveiling key findings, the survey illuminated that Americans, regardless of region, harbor predominantly positive views toward truck drivers. The consensus remains strong across the nation, with 80% of respondents acknowledging the crucial role truck drivers play in the economy. The South stood out, with residents expressing confidence in their understanding of the trucking industry.

Despite the positive sentiments, the survey uncovered lingering stereotypes. Around 21% of respondents associated truck drivers with older white males adorned with tattoos, while 13% perceived them as reckless, disregarding traffic rules and safety precautions. However, the majority offered more positive characterizations, with 35% describing drivers as industrious, overworked, and underpaid, and 32% highlighting their reliability and punctuality.

The survey explored what comes to mind when thinking of truck drivers. While some limiting stereotypes persisted, with 21% associating drivers with specific demographics and behaviors, a significant portion of respondents – 48% – expressed respect for the hard work, sacrifices, and contributions of truck drivers. An additional 46% indicated an interest in learning more about the drivers’ travels and experiences within the trucking industry.

Interestingly, the survey revealed that negative assumptions about truck drivers’ politics, education, or other traits were less common among respondents. This nuanced and largely positive perception shows the respect with which Americans view professional driving. Insights like these allow the industry to benefit from a better understanding of public sentiments and allow the public to learn more about the vital role played by truck drivers in our society.

“It’s great to see that so many people value and feel positively about truck drivers and the work they do,” said Tobenna Arodiogbu, co-founder and CEO, CloudTrucks. “Most freight in the U.S. is moved by trucks so drivers and the trucking industry as a whole are absolutely essential to our daily existence. Perhaps positive perceptions will continue to grow as consumer activities like e-commerce become more popular and the general public interacts more with the trucking industry via experiences like package tracking. We have to keep working to ensure this value translates monetarily to drivers.”

Source: The Trucker

The post New Survey Shows the Respect Americans have for Professional Drivers appeared first on Truck Drivers USA.

The study, conducted by Forbes Advisor, exposes Arizona as the state with the worst road rage. The top 10 are as follows:

1. Arizona
2. Rhode Island
3. West Virginia
4. Virginia
5. Oklahoma
6. Alabama
7. Connecticut
8. Illinois
9. Texas
10. Ohio

In a concerning statistic, Arizona has been rated the second-worst state in terms of drivers being forced off the road, with 22.5% experiencing this dangerous behavior. In addition, the Grand Canyon state shares the dubious honor with Oklahoma for having the third-highest percentage of drivers being tailgated, at 70.5%. Furthermore, nearly a third of Arizona drivers have reported being confronted by another driver who exited their vehicle to yell at or engage in a physical altercation, making it the fifth highest in the nation.

The states with the lowest road rage levels include:

1. Delaware
2. Idaho
3. South Dakota
4. Louisiana
5. Wyoming
6. New Hampshire
7. Washington
8. Iowa
9. Indiana
10. New Mexico

Causes of Road Rage

According to the survey, the leading cause of road rage nationwide is heavy traffic, accounting for 39.35% of reported incidents. Other significant factors include pre-existing stress levels (38.06%), running late (33.89%), already being angry (32.49%), and feeling tired (26.86%).

When it comes to specific locations, city streets are identified as the most common setting for confrontational driving, representing 29.18% of reported incidents. Freeways and highways follow closely behind at 26.59%, while parking lots (14.9%), intersections (12.36%), and rural roads (7%) also witness their fair share of road rage.

Regional disparities are apparent when it comes to the intensity of aggressive driving encounters. Rhode Island takes the lead with a staggering 96.5% of drivers having experienced being yelled at, insulted, or threatened. Conversely, Kansas reports the lowest percentage at 32.5%.

Forcing drivers off the road is another worrisome aspect of road rage, with Illinois recording the highest percentage at 23.5%. On the other hand, Wyoming boasts the lowest occurrence at a mere 1.5%.

Alarming statistics reveal a disturbing trend of escalating violence in road rage incidents nationwide. In the past year alone, over 400 people were injured in road-rage shootings, marking a shocking 135% increase from 2018.

If you’re curious to delve deeper into the data and explore the comprehensive survey report, you can access it by clicking HERE.

Source: Land Line

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