Topics: Carrier Solutions, Transportation Industry, Newsletters
Welcome to this month's newsletter, where we dive into significant developments shaping the freight industry today. From the ongoing challenges in the freight market and the rise in cargo theft to stories of incredible achievements in safety and professionalism, there's much to cover.
We also look at the potential impact of a looming port strike and the urgent need for more truck parking. Despite the hurdles, there are glimmers of hope as carriers continue to show resilience and rise above adversity to set new standards in safety and service. Let's explore the headlines shaping our industry.
Signs and Sighs in the Freight Market
The ongoing freight recession took another hit when August saw a capacity surge. According to FreightWaves, the latest Logistics Managers Index theorizes smaller carriers are jumping back into the market as rates improve and in anticipation of a robust Q4. DC Velocity adds that many carriers are weathering this drawn-out downturn thanks to technology and stimulus funding. Recent optimism in truckload markets has shifted to caution, with market indexes showing regression since June. A noticeable shift toward rail transportation suggests companies are seeking value and flexibility in timetables. Beau King, a 15-year logistics veteran, states, "I expect some pressure to build…, but the stretch between then and Halloween typically comes in as a dud."
Finding Silver Linings in the Loss of Yellow
It’s been a little over a year since Yellow Freight shuttered its operations, and the impact continues to reverberate throughout the freight industry. According to the Journal of Commerce, less-than-truckload (LTL) is now smaller but has a greater focus on customer service, efficiency, and profitability following Yellow’s bankruptcy. Major carriers like Estes and Old Dominion continue to acquire assets from Yellow not just to expand but to enhance efficiency. Yellow recently put its remaining LTL terminals up for sale. Competition in the LTL space is shifting towards continued growth on top of the latest 7.1% year-over-year growth reported in July.
Without Parking, Truckers Cannot Deliver
If we want to keep trucks moving, they need a place to park. According to this video from the American Trucking Association (ATA), “there is only one authorized parking space for every 11 truck drivers on the road today.” Available truck parking has not kept pace with the increase in truck miles. This is not sustainable and creates additional safety issues.
As reported by The Trucker, The House Transportation Appropriations Subcommittee has earmarked $200 million in a funding bill for truck parking projects, with grants available for states, local governments, and other entities to improve parking and safety for commercial drivers. Additional legislation, like the Truck Parking Safety Improvement Act, aims to allocate even more funding. In the meantime, innovative solutions like The Truck Parking Club look to alleviate some pressure with a platform connecting drivers with available parking locations.
Hurricane Helene's Devastation and the Freight Industry's Response
Hurricane Helene’s delivered widespread destruction across several southeastern states, including Florida, Georgia, and the Carolinas. Flooding, wind damage, and infrastructure breakdowns have made recovery a long and difficult process. In response, organizations like the American Logistics Aid Network (ALAN) are working tirelessly to bridge supply chain gaps and deliver critical aid to affected areas.
Another inspiring story of resilience comes from NASCAR legend Greg Biffle, who has been flying emergency rescue missions in remote areas of North Carolina. Biffle and a growing number of pilots have delivered supplies to hard-hit communities cut off by floodwaters. This collective effort is helping address immediate needs like food, water, and transportation.
New ELD Requirements Aim to Reduce Falsification
The National Transportation Safety Board (NTSB) has introduced new Electronic Logging Device (ELD) requirements to strengthen safety in the trucking industry. Following a recent investigation, these updates focus on enhancing ELD audit logs to prevent tampering and emphasize the need for better fatigue management, driver training, and safety systems like onboard video recorders and collision avoidance technology.
You can review the latest report here to learn more about the new ELD requirements.
Safety and Dedication in Trucking
While the freight industry faces challenges, stories of remarkable achievements in safety and professionalism offer a silver lining. The American Trucking Association recently crowned Jackie Reed, a FedEx Freight driver from Mississippi, as the Bendix Grand Champion at the 2024 National Truck Driving & Step Van Championships. With over three million accident-free miles in a 34-year career, Reed exemplifies the precision and dedication that keeps our roads safe.
In addition, Roehl Transport celebrated John Moeller for surpassing six million safe miles—an awe-inspiring achievement in an industry where safety is paramount. These stories remind us of the professionalism and dedication of truck drivers across the nation, continuing to set new standards in safety despite the industry's ongoing difficulties.
Carriers and Brokers Urged to Act to Combat Rising Cargo Theft
Recent successful attempts and failed attempts to steal pallets of seafood and beef show nothing is off the table when it comes to cargo theft. Cargo theft continues to soar, increasing nearly 50% in the first half of 2024. The FBI estimates cargo theft is a nearly $35 billion dollar industry in the United States. For this reason, the American Transportation Research Institute is calling on carriers and brokers to participate in a research study to uncover greater insights into frequency, location, and targeted products.
Empowering Carriers with Financial Stability and Growth
Perceived market weakness has many banks shying away from financing trucks and trailers. Cass takes a different approach by actively supporting carriers with tailored financing solutions during these challenging times. We are quickly becoming the bank of the industry, offering the expertise and capital needed to finance trucks, trailers, and other essential assets. And our payment solutions provide working capital options to ensure your business has the financial flexibility to keep moving forward.
At the end of the day, it's a partnership. We can help you achieve your goals with working capital, equipment financing, or find ways to improve your payment options.
Moving Forward Together with Cass
As you navigate a freight industry with its fair share of challenges and uncertainty—from market shifts and capacity fluctuations to port strikes and evolving safety regulations—Cass is here to support carriers through it all. At Cass, we like the idea of becoming the banking partner of the trucking industry. It’s our way of supporting an industry that keeps America moving. Our understanding of the freight industry and its complexities allows us to provide tailored financial solutions that help manage cash flow, whether you're expanding your fleet or looking to improve your working capital. Our services don't just keep you going; they keep your business resilient, ensuring that you have the resources needed to adapt, grow, and thrive.
Contact us today if you're ready to see what Cass can do for you to keep the freight industry moving forward.
