Topics: Carrier Solutions, Newsletters
As we compile news from throughout the freight industry, the losses due to the incredibly devastating California wildfires are still being tallied. Our thoughts and prayers are with the people and businesses of Southern California. The American Logistics Aid Network (ALAN) is mobilizing relief efforts and posting ways to help here. The California Trucking Association (CTA) and Harbor Trucking Association also are collecting donations for their members affected by the wildfires.
“This has just caused complete chaos,” the CTA’s Eric Sauer told Trucking Dive. “The pure devastation that’s going on is just heartbreaking.”
Supply chain disruptions due to the wildfires are going to continue for the unforeseen future. Thankfully, an International Longshoremen’s Association (ILA) strike that could have added a massive amount of additional disruptions on the East and Gulf coasts of the United States has been averted. A tentative agreement between the ILA and the United States Maritime Alliance (USMX) is good news, and we all could use more of that.
ILA, USMX Reach Contract Agreement
A dockworker strike could have brought trucking in and out of the ports along the United States’ East and Gulf coasts to a standstill. That crisis has been prevented as the ILA and USMX have reached a tentative agreement on a six-year contract.
“This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong,” the ILA and USMX said in a joint statement.
Specifics of the contract will not be released to the public until union members vote on the agreement, but news of a deal was widely hailed, including by the president of the United States.
“Collective bargaining plays an important role when it comes to building a strong economy from the middle out and the bottom up,” President Joe Biden said, adding that the agreement “shows that labor and management can come together to benefit workers and their employers.”
Year-Over-Year Class 8 Truck Orders Jump 39%
Class 8 truck orders jumped 39% year over year in December to 36,500 units, according to data from ACT Research.
FTR Transportation Intelligence reported that full-year 2024 Class 8 orders totaled 279,872 units, up 11% year over year.
Magnus Koeck, the vice president of strategy, marketing, and brand management for Volvo Trucks North America, told Transport Topics that it is “clear that we now see a shift where the over-the-road — and especially the sleeper market — is coming back to normal levels. We still believe we’ll see an even stronger uptick in orders in Q3 and Q4 2025 due to the pre-buy ahead of 2027, but it’s good to see a positive momentum already in the December numbers.”
Jonathan Randall, the president of Mack Trucks North America, said, “December’s order activity demonstrates the resilience of the commercial vehicle market as we closed out 2024. Challenges still exist in the freight market, but we’ve seen quote activity and orders increase in that segment while sustained strength remains in the vocational segment.”
Analysts Believe Freight Cycle Now in ‘Positive Phase’
Carriers are cautiously optimistic this year will bring “an upcycle driven by improvements in consumer demand, lower interest rates and capacity rightsizing,” according to an article in Trucking Dive.
“I think it’s fair to say that we’ve moved into a … positive phase of the freight cycle,” Tim Denoyer, an ACT Research vice president and senior analyst, said in a market update.
Freight industry analysts also believe there will be further consolidations in trucking this year as M&A deals are expected from such major carriers as TFI International and Knight-Swift Transportation Holdings.
Carriers Warned About Cyberattacks
Cyberattackers can totally disrupt a carrier’s operations with just a simple email phishing scheme.
“That’s all they need is an hour and boom – or less than that,” Mike Zupon, the vice president of technology for Ward Transport & Logistics, told Trucking Dive.
Ward, Estes Express Lines, and Bison Transport are among the companies that have suffered cyberattacks in recent years.
The Cybersecurity & Infrastructure Security Agency (CISA) works with transportation companies to help them understand their cyber risks and make them aware of the resources that can help them strengthen their defenses.
Zupon said resources such as KnowBe4, CloudStrike, and the National Motor Freight Traffic Association (NMFTA) are particularly helpful after a company has experienced a cyber incident.
More Carriers Exited Market in Q4
The December net decrease of carriers leaving the market was the largest since last April, according to Avery Vise, FTR’s vice president of trucking. In fact, federal data showed thousands more carriers exited the trucking business than the number of awarded grants and reinstatements in operating authority in the fourth quarter of 2024.
Vise did say that on a quarterly basis, the number of carrier exits in the fourth quarter was smaller compared to other quarters during the long freight recession, and the industry is getting closer to recovery.
Trucking Costs Could Skyrocket During Scott Bridge Repair
The mid-Atlantic trucking industry’s operating costs are expected to shoot up by $92.8 million in 2025 — and each year the Francis Scott Key Bridge in Baltimore remains closed. A major section of the key regional thoroughfare collapsed when the bridge was hit by a containership last March. The bridge is not scheduled to reopen to truck traffic, much of it traveling to and from the Port of Baltimore, until 2028.
Because of delivery route diversions, a regionwide annual increase of about 1.1 million hours in travel time for medium- and heavy-duty trucks is expected, according to a study conducted by researchers from the University of Maryland and Morgan State University.
Forward Air Looking at Company’s Future
Forward Air’s board reportedly is weighing its options following the fallout from last year’s Omni Logistics acquisition. Those options are said to include a sale of the entire company, another acquisition or merger, or some other strategic move.
The messy Omni acquisition resulted in the ouster of Forward Air CEO Tom Schmitt. The asset-light transportation and logistics services provider posted a net loss of $34.2 million in the third quarter of 2024, compared to a profit of $6.49 million in the same period in 2023.
Daimler Devoting Detroit Space to ZEV Development
Daimler Truck North America is investing $285 million to expand and upgrade its subsidiary Detroit Diesel Corp.’s facility in Redford Township, Michigan, that produces engines, transmissions, and axles for the Freightliner, Western Star, and Thomas Built Buses vehicle platforms.
The additional 100,000 square feet will include research and development space focused on (zero-emission vehicle) ZEV battery prototyping and testing.
“Diversifying the site’s product portfolio is critical to its long-term viability as the commercial truck industry evolves from traditional internal combustion engine (ICE) products to ZEV solutions,” Daimler said in its application for incentives through the Michigan Economic Development Corp.
A. Duie Pyle Opens Pennsylvania LTL Service Center
- Duie Pyle has expanded its Northeast network with an 11-acre Camp Hill, Pennsylvania, facility that includes 85 LTL service center doors.
The new facility, which brings the company’s total to 31, is strategically located off Interstate 83 and U.S. Route 11. Sixty-four jobs, including 35 drivers, were created with the recent opening of the service center.
“With increased operational capacity in the region, we are well-positioned to meet evolving customer demands, drive local economic growth, and create new opportunities for the community and the Pyle team,” John Luciani, the company’s COO of LTL solutions, said in a statement.
Pitt Ohio Acquiring Sutton Transport
Pitt Ohio Transportation Group has announced plans to acquire Midwest LTL carrier Sutton Transport and merge it with the Dohrn Transfer LTL unit, which it purchased in 2014.
After an integration period, the merged company reportedly will be known as Dohrn LLC.
Cliff Sutton, president of Weston, Wisconsin-based Sutton Transport, said company leaders decided Pitt “was the most suitable entity to purchase our company, ensuring the interests of both our customers and our employees are protected.”
Pitt Ohio President Chuck Hammel said, “This acquisition aligns perfectly with our strategic vision to enhance service for our customers by increasing shipment density within our footprint.”
We’re In It Together
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Let’s work together to continue to move the freight industry forward. Contact us today.
