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The Trucker Newspaper - October 15, 2018

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Business<br />

<strong>October</strong> <strong>15</strong>-31, <strong>2018</strong> • 23<br />

ATA’s Truck Tonnage Index (Seasonally Adjusted; 20<strong>15</strong>=100)<br />

114<br />

112<br />

110<br />

108<br />

106<br />

104<br />

102<br />

100<br />

98<br />

96<br />

94<br />

OCT - 13<br />

JAN - 14<br />

APR - 14<br />

JUL - 14<br />

OCT - 14<br />

JAN - <strong>15</strong><br />

APR - <strong>15</strong><br />

JUL - <strong>15</strong><br />

OCT - <strong>15</strong><br />

JAN - 16<br />

Motor carriers’ average cost per mile<br />

increases by 6 percent, ATRI reports<br />

Lyndon Finney<br />

editor@thetrucker.com<br />

ARLINGTON, Va. — With economic activity<br />

strengthening in 2017, the average marginal<br />

cost per mile incurred by motor carriers increased<br />

6 percent to $1.69, according to the American<br />

Transportation Institute’s <strong>2018</strong> update to “An<br />

Analysis of the Operational Costs of Trucking,”<br />

which was released <strong>October</strong> 2.<br />

Using financial data provided directly by motor<br />

carriers throughout the country, this research<br />

documents and analyzes trucking costs from 2008<br />

through 2017, providing trucking industry stakeholders<br />

with a high-level benchmarking tool and<br />

APR - 16<br />

JUL - 16<br />

OCT - 16<br />

JAN - 17<br />

APR - 17<br />

JUL - 17<br />

OCT - 17<br />

JAN - 18<br />

APR - 18<br />

MAY - 18<br />

AUG - 18<br />

government agencies with a baseline for future<br />

transportation infrastructure improvement analyses.<br />

ATRI said cost increases were broad-based<br />

in 2017, with growth in nearly every major lineitem<br />

over the year.<br />

However, even though the year-over-year average<br />

marginal costs per mile increased both in<br />

2016 and 2017, it is lower than it was in 2014,<br />

when the costs per mile was $1.703.<br />

Driver wages increased for the fifth consecutive<br />

year. <strong>The</strong> combined cost of driver wages and<br />

benefits represent 43 percent of the overall cost<br />

per mile.<br />

See Costs on p24 m<br />

Tonnage slipped from July to August,<br />

ATA says, but still above a year ago<br />

Lyndon Finney<br />

editor@thetrucker.com<br />

ARLINGTON, Va. — <strong>The</strong> American<br />

Trucking Associations’ advanced seasonally<br />

adjusted (SA) For-Hire Truck Tonnage<br />

Index decreased 1.8 percent in August after<br />

increasing 1.9 percent in July.<br />

<strong>The</strong> August index equaled 112.9<br />

(20<strong>15</strong>=100), down from 1<strong>15</strong> in July.<br />

Compared with August 2017, the SA index<br />

rose 4.5 percent, down from July’s 8.6<br />

percent year-over-year increase.<br />

Year-to-date, compared with the same period<br />

last year, tonnage increased 7.6 percent,<br />

far outpacing the annual gain of 3.8 percent<br />

in 2017.<br />

<strong>The</strong> not seasonally adjusted index, which<br />

represents the change in tonnage actually<br />

hauled by the fleets before any seasonal adjustment,<br />

equaled 120.4 in August, which<br />

was 5 percent above the previous month’s<br />

reading of 114.6.<br />

“Truck freight remained solid in Au-<br />

See Tonnage on p25 m<br />

<strong>The</strong> <strong>Trucker</strong>: LYNDON FINNEY<br />

<strong>The</strong> American Transportation Research Institute said operational cost increases were<br />

broad-based in 2017, with growth in nearly every major line-item over the year.<br />

In the world of trucking, there’s good, there’s better, and then there’s ‘robust’<br />

Klint Lowry<br />

klint.lowry@thetrucker.com<br />

Lane<br />

Departures<br />

<strong>The</strong> good folks at Kenworth were very excited<br />

a couple weeks ago about the official introduction<br />

of their new W990 model. Who could blame<br />

them? This is the heir apparent to the W900 series,<br />

a superstar of the trucking industry since the<br />

Kennedy administration.<br />

It was such a big deal to them that they flew<br />

16 of us trucking journalists to Las Vegas a couple<br />

weeks ago and put us up overnight in a nice<br />

hotel just so we could bear witness to the great<br />

unveiling.<br />

<strong>The</strong> gesture wasn’t lost on me, nor was the fact<br />

that they rented out the Las Vegas Motor Speedway<br />

for the night as the setting for the W990’s<br />

debut. During the reception, they even arranged<br />

to give guests free rides around the track in supercars<br />

driven by professional racecar drivers.<br />

Kenworth was pulling out all the stops for this<br />

one. Still, it felt like something was missing.<br />

After dinner, we all went outside for speeches<br />

and a video that made the W990 look like a bona<br />

fide movie star. <strong>The</strong>n came the big moment, as<br />

eight shiny new W990s paraded out under dramatic<br />

lighting and boisterous rock music. <strong>The</strong><br />

production was like a cross between Fashion<br />

Week in Paris and the introductions at an NBA<br />

championship game.<br />

It was a doozy of a rollout, and yet, I was still<br />

waiting for that one element that would put this<br />

celebration over the top.<br />

<strong>The</strong> next morning, Kenworth took us to a<br />

local dealership where we could experience the<br />

W990 up close. As I sat in a conference room between<br />

test rides, I listened to Kenworth General<br />

Manager Mike Dozier talking with a couple of<br />

my colleagues.<br />

That’s when he evoked the magic word that<br />

in trucking signifies all that is truly magnificent.<br />

<strong>The</strong> W990, he said, is “robust.”<br />

<strong>The</strong> entire trucking industry is hopelessly in<br />

love with the term “robust.” It’s a vague term,<br />

but it has become the most coveted all-purpose<br />

compliment that can be paid to any product, any<br />

policy, any industry trend.<br />

Look how many times you can find the term<br />

in this or any trucking publication. That new tire<br />

doesn’t just promise dependable performance, it<br />

promises robust performance. That carrier isn’t<br />

just offering substantial signing bonuses, they’re<br />

offering robust bonuses.<br />

I get it. “Robust” is one of the most virile<br />

of adjectives. Just hearing it makes you feel<br />

like going out and chopping some wood. Is the<br />

industry experiencing healthy growth? That’s<br />

nice. Substantial growth? Good to hear. Robust<br />

growth? Yeah, that’s what we’re talking about!<br />

You hear “robust” and you imagine a dude<br />

with a booming voice and so much muscle he<br />

can’t even button his shirt all the way up. <strong>The</strong>n<br />

again, I’ve also heard that “robust” is just a diplomatic<br />

way of saying, “he’s fat, but he has real<br />

good posture.”<br />

<strong>The</strong> actual dictionary definition is pretty broad<br />

but it’s more in line with the first image, so it’s no<br />

wonder trucking executives and the PR flaks they<br />

hire spread “robust” around like testosteronelaced<br />

fertilizer. Trucking is still mostly a man’s<br />

world, and what guy, even the most enlightened,<br />

sensitive, 21st-century type guy, doesn’t like to<br />

feel a little jolt of “robust” now and then?<br />

You may not have even noticed. Maybe<br />

it’s a writer’s thing, but to me the endless “robusts”<br />

are like the person sitting next to you<br />

who won’t stop drumming with their fingers or<br />

snapping their gum. It makes me want to shout<br />

— but to who? — “Hey, there are approximately<br />

42,869 adjectives in the English language.<br />

Try another one for a change.”<br />

Whether it’s cheesy (but effective) manipulation<br />

or unconscious redundancy, who knows?<br />

Maybe they are suckers for the “robust” rush<br />

themselves. In any case, I’m pretty sure this is<br />

something I’m going to have to learn to live<br />

with.<br />

But thanks for hearing me out. See you<br />

back here in November. Happy Halloween —<br />

no, make it a robust Halloween. 8

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