Transport Topics

Debate on a multibillion-dollar budget bill targeting supply chain connectivity concerns, clean energy initiatives and economic incentives remains front-and-center on Capitol Hill. A vote on the $740 billion Inflation Reduction Act is expected in the House of Representatives today. That follows Senate passage of the bill, which occurred Aug. 7 along party lines. House approval of the Senate-passed bill would advance the measure to President Joe Biden’s desk for his signature. Its enactment would greenlight key pillars of the president’s Build Back Better social economic and infrastructure agenda. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Soaring prices for diesel fuel, rising maintenance costs and higher wages for drivers pushed the price of operating a truck up 12.7% in 2021 to $1.855 per mile — the highest level on record — according to a report released Aug. 10 by the American Transportation Research Institute. The study determined that higher fuel prices were the biggest contributor to the gain, up 35.4% compared with 2020. Repair and maintenance costs spiked by 18.2% compared with 2020, and driver wages continued their upward trend of the past several years, rising 10.8% compared with 2020. On a cost-per-hour basis, costs increased to $74.65. Learn more about your ad choices. Visit podcastchoices.com/adchoices

President Joe Biden signed into law yesterday legislation designed to enhance domestic semiconductor manufacturing and alleviate supply chain bottlenecks. Specifically, the $280 billion CHIPS and Science Act dedicates more than $50 billion in grants for the semiconductor sector and related industries. The law also proposes to strengthen several programs related to science, technology, engineering and mathematics.Biden said the bill was in the best interests of America’s economic and national security. Learn more about your ad choices. Visit podcastchoices.com/adchoices

In the first half of 2022, independent engine maker Cummins Inc. supplied a leading 47,713 Class 8 diesel engines, or 35.5% of the 134,373 used, Wards Intelligence reported. Detroit Diesel, a brand of Daimler Truck North America, was next highest, supplying 40,632 Class 8 engines for a 30.2% share. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Industry supplier Commercial Vehicle Group reported second-quarter net income and revenue fell, and new pricing began in July. Net income for the quarter ended June 30 was $2.5 million on revenue of $250.8 million, compared with net income of $5.1 million on revenue of $257.9 million a year earlier. New pricing began with its largest customer on July 1, and with several other customers in 2022, and the company expects that to benefit its bottom line for the rest of the year. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Mario Harik will succeed Brad Jacobs as chief executive of XPO Logistics starting in the fourth quarter, the company announced Aug. 4. Harik also will join the board of directors after XPO’s planned spinoff of its tech-enabled brokerage platform in Q4. Jacobs will remain with XPO as executive chairman and become nonexecutive chairman of the spinoff. The company further announced that Harik has been named president of the less-than-truckload division. He had served as acting LTL president since October 2021. Learn more about your ad choices. Visit podcastchoices.com/adchoices

GXO Logistics Inc. closed out its first year as an independent company with revenue and earnings growth in the second quarter of 2022, the company reported Aug. 2. The Greenwich, Conn.-based contract logistics business posted net income of $52 million, or 44 cents a diluted share, for the three months ending June 30. That compared with $14 million, 10 cents a share, during the year-ago period when the company’s operations were part of XPO Logistics. Total Q2 revenue for GXO increased by 15% to $2.16 billion compared with $1.88 million. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Western Star is launching a new Class 8 over-the-road model that parent company Daimler Truck North America promises will deliver on the niche brand’s reputation for dependability and toughness, while adding advanced safety, driver comfort and fuel efficiency features. The Western Star 57X, which the company showcased in Ypsilanti, Mich., joins two earlier versions in its X series — the 47X, introduced in September 2021, and 49X, introduced a year earlier, both built for vocational applications. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Autonomous technology developer Aurora Innovation Inc. and Schneider National Inc. have announced a commercial pilot effort to haul freight for Schneider’s customers with Aurora Driver, Aurora’s autonomous technology. Under the pilot, Aurora will begin weekly autonomous hauls beginning the week of Aug. 1 between Dallas and Houston, with Aurora vehicle operators on board the trucks. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Truck dealership Rush Enterprises reported record second-quarter net income and revenue, citing strong freight demand and consumer spending that resulted in increased sales of commercial vehicles, parts and services. Net income for the quarter ended June 30 was $110.6 million on revenue of $1.8 billion compared with net income of $58 million and revenue of $1.3 billion a year earlier. The company reported it sold 4,168 new Class 8 trucks in the second quarter, an increase of 41% compared with the second quarter of 2021. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Legislation to boost domestic semiconductor manufacturing while improving freight access along the nation’s supply chains was sent to President Joe Biden’s desk July 28. The legislation, which drew bipartisan support and which is strongly endorsed by the commercial transportation sector, was approved in the U.S. House of Representatives 243-187, a day after its 64-33 bipartisan passage in the Senate. President Biden indicated he would enact it into law upon its arrival. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Operations at the Port of Oakland in California have resumed after a pause due to protesters, who were there to speak out against AB 5. The law, which has gone into effect after a lengthy legal battle, aims to reclassify owner-operators as employees of carriers. Some protesters remain on site, but are using “free speech zones,” and not impeding operations, according to a port representative. One of the major issues with the law is the uncertainty it has sparked, as no one knows quite how it will be enforced or implemented. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Researchers from the Texas A&M Transportation Institute, the University of Wisconsin-Madison and ParkUnload are conducting a truck parking pilot study to better understand how truck drivers use existing parking spaces and to test the benefits of using a mobile parking app. The study, funded by the Federal Motor Carrier Safety Administration under a cooperative grant program, will select certain truck parking spaces along Interstate 80 in Iowa and along I-39/90/94 in Wisconsin. Learn more about your ad choices. Visit podcastchoices.com/adchoices

The price of diesel has fallen for the fifth straight week, and yet it remains nearly $2 a gallon more than a year ago. This week’s 16.4-cent drop brings it to $5.268 for the national average, down by 54.2 cents from its all-time high of $5.81 on June 20. One region, the Gulf Coast, slid below $5 a gallon, as a 17.2-cent drop brought the price down to $4.911 a gallon. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Net U.S. trailer orders in June rose to 25,444, ACT Research reported July 22. It was an increase of about 10,000 orders compared with the preliminary number issued only days before. At the time the preliminary order volume of 15,300 was released, four leading trailer makers told Transport Topics they had not opened their 2023 order boards. Three then confirmed that remained the case after the revised number was released, and the fourth one did not respond immediately to a request for comment. A spokesman for a fifth trailer maker, publicly traded Wabash, chose not to comment. Wabash has scheduled an earnings call for July 27. Learn more about your ad choices. Visit podcastchoices.com/adchoices

U.S. trailer orders in June fell to 15,300, by far the low point of the year, ACT Research reported, citing manufacturers’ preliminary data. A year earlier, net orders were 10,952, according to ACT. FTR pegged June preliminary orders at 14,400. Dry vans made up half the orders in June, according to FTR’’s Don Ake, and there is still room for refrigerated trailer orders, but not much for flatbeds or tanker trailers. Learn more about your ad choices. Visit podcastchoices.com/adchoices

One of the largest trucking companies in the U.S., J.B. Hunt, recently announced Q2 earnings and some executive news. The carrier reported more than $250 million in net earnings compared to the same period in 2021, along with a 32% jump in revenue to $3.84 billion. Those numbers handily beat Wall Street expectations. Additionally, the company announced Shelley Simpson will be taking on the role of president. The first woman to hold the post, she replaces John Roberts, who will remain CEO. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Truck tonnage in June soared 7.9% above the same month last year, according to American Trucking Associations' For-Hire-Truck Tonnage Index, which was released July 19. Sequentially, from May to June, the index increased by 2.7% after showing a 0.3% improvement in May. The increase in the June index is the 10th consecutive year-over-year gain and the biggest jump since June 2018, according to ATA Chief Economist Bob Costello. Learn more about your ad choices. Visit podcastchoices.com/adchoices

A number of California owner-operators have taken to protesting the AB 5 law at the state’s busy ports. The law, which was first passed a few years ago, is now in effect for trucking companies after the Supreme Court chose not to hear the case. It requires companies to reclassify owner-operators as employees, but, among other concerns, remains lacking in clarity. A spontaneous protest broke out at the ports of Los Angeles and Long Beach last week; another one began at the Port of Oakland yesterday. Learn more about your ad choices. Visit podcastchoices.com/adchoices

President Biden took action on Friday to keep 115,000 rail workers on the job while arbitrators that he appointed develop a set of contract recommendations for the railroads and unions to consider. Biden had to act before today to prevent a possible strike. If the railroads and their 12 unions can’t agree on a contract within the next 60 days, Congress likely would step in to prevent a strike by voting to impose terms or taking other action. Learn more about your ad choices. Visit podcastchoices.com/adchoices