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