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12 • JULY 2023 PERSPECTIVE Thetrucker.com Take time to appreciate the true price of freedom this Fourth of July CHAPLAIN’S CORNER Rev. Marilou Coins It’s already July — wow! We have reached the time when vacationing is on everyone’s mind. Going places, doing things, enjoying family time and just plain relaxing for a break from work is so rewarding and refreshing. We’re also about to celebrate the Fourth of July with fireworks, barbecues and other outdoor activities. But have you ever really realized just how important a day the Fourth of July is? Not many people really see this as a “freedom day,” that we should be thankful for because of those who sacrificed their lives for our freedom. If you look at the Fourth of July as a day “owed” to you, then you’re missing the whole point of freedom. Freedom came at the cost of so many lives, and we just seem to not realize all it entailed. I find myself thinking about all the military servicepeople, who placed their lives on the line so we can have freedom and enjoy those barbecues with our families and friends. I think of the lives of those we never met but who died for us anyway. Now, let’s also look at how our freedom from sin cost one savior everything. Jesus laid down his life for our freedom from sin so we could gain an eternity in heaven at the end of our lives. Have you ever thought about this? Did you ever think of the cost of salvation being given through the life of Jesus so we can celebrate each day of our life? None of us have met Jesus, but we all know what he did for us. He died so we can be free from Satan and his grip on us. We can celebrate freedom from bondage to sin because of the cost of one life. Jesus did this for us, and all we have to do is be thankful and celebrate the freedom he has given each and every one of us. So, while you’re enjoying that hot dog, chicken or ribs on the grill just remember to say “thank you” to the soldiers who died so that we can live in the land of the free. Also give thanks to the savior who died for us to give us eternal life at the end of our time here on earth. Life is short but eternity is forever. Celebrate your earthly freedom and be blessed, knowing you have eternal freedom waiting for you at the end of your life. Many have died for our earthly freedom, and one died for our eternal freedom. Let freedom reign for all. Enjoy the fourth of July and have a blessed vacation. We are the chosen ones, who can enjoy freedom and life eternal. Happy Fourth of July — and best of the roads and all gears forward in Jesus.8 iStock Photo Independence Day is traditionally a time for backyard barbecues with famiy and friends. ATTORNEY cont. from Page 8 So, while the Russian oligarchs may not like having their assets frozen or yachts seized, they would likely have little success in challenging the legality of the sanctions — and likely even less success in getting their assets returned anytime soon. Now, I know that what happens to oligarchs and their yachts doesn’t necessarily impact the trucking industry. But what if something arose that caused a national emergency, and these same laws were applied to foreign nationals with trucking interests in the U.S.? Hmmmmmm. Makes you think, doesn’t it? Brad Klepper is president of Interstate Trucker Ltd. and is also president of Driver’s Legal Plan, which allows member drivers access to services at discounted rates. For more information, contact him at 800-333-DRIVE (3748) or interstatetrucker.com and driverslegalplan.com. 8 YOU FOCUS ON YOUR FLEET, WE FOCUS ON COMPLIANCE. Get the expert service, insight, and support you need to focus on building your brand and improving your bottom line. Our knowledgeable team of transportation and compliance experts, combined with our intelligent compliance platform (CPSuite), have helped fleets of all sizes go beyond the minimum requirements since 1983! REQUEST A QUOTE OR DEMO fleetworthy.com | 608.230.8200 Subscribe to our newsletter for insights, updates and new releases!
Thetrucker.com JULY 2023 • 13 BUSINESS Prepare for an upturn Analysts project industry conditions are at or near bottom, poised to rebound CLIFF ABBOTT | SPECIAL CORRESPONDENT Each of the experts in most industries has their method of interpreting the economic “tea leaves.” However, by the end of May a common theme was emerging: Nearly everyone was questioning whether the trucking market had hit bottom. As early as May 16, analysts at ACT Research noted that capacity was beginning to tighten. That’s another way of saying the excessive number of trucks available for the reduced number of available loads was starting to shrink. There are two ways to reduce the excessive number of trucks: 1) Get trucks out of the market or 2) increase shipment numbers. One way to tell trucks are leaving the market is by the number of orders for Class 8 trucks. For the past few months, new orders have trailed production by thousands each month. In May, for example, 14,000 to 15,000 trucks were ordered, while more than 24,000 were actually sold, bringing down the backlog of trucks on order but yet to be built. At the same time, used truck inventories increased, indicating some trucks are coming off the road. Another way to monitor the number of trucks is by the number of interstate operating authorities granted by the DOT. That number fell rapidly in the first few months of the year and is still beneath record levels set last year. At the same time, authority revocations exceeded the number granted. This means there are fewer carriers — mostly businesses with one to five trucks — shutting down, which may also help explain the increase in available used trucks. Yet another method is to note the number of truck drivers employed by the industry. According to reports from the U.S. Department of Labor, long-haul trucking jobs declined by 8,700 in the first quarter of 2023. That’s about 1% of the driving force. The other part of the equation — increasing freight shipments — hasn’t happened yet. When it does, spot freight rates will begin rising. For now, however, an entire industry hopes they don’t go any lower. The Cass Freight Index for Shipments grew 1.9% in May from April levels. Unfortunately, shipment levels almost always rise in May. When seasonally adjusted, the shipments index actually fell by 0.8%. The year-over-year change, May 2023 compared to May 2022, showed a 5.6% decline. According to the Cass Freight Index for Expenditures, payments for those shipments fell 7.1% in May. If shipments fell slightly less than 1% while expenditures fell more than 7%, the culprit must be lower rates. The Cass release blamed declining retail sales and “destocking” for the drop. Destocking is the deliberate reduction of inventory to meet current customer demand. As for expenditures, it’s important to note the Cass Freight Index for Expenditures rose by a record 38% in 2021 and followed that up with another 22% increase in 2022. The expected decline in 2023 is around 16%, so freight rates are still considerably higher than in 2020. Unfortunately, so are expenses due to inflation and EPA-mandated emissions requirements for new trucks. The Cass Freight Index numbers are compiled from billing for Cass customers and represent transport by multiple modes, including truck, rail, pipeline, barge, ship and air. iStock Photo Analysts say freight capacity began to tighten as early as mid-May, possibly signaling the beginning of an upswing for the trucking industry. For strictly truck numbers, DAT Freight and Analytics tracks weekly and monthly data from its load board, which is the largest in the industry. DAT’s “Trendlines” report showed a 29.4% increase in spot loads posted for May compared to April. However, much of that gain is due to the start of produce shipments, which begin around the same time each year. Compared with May 2022, this year’s May spot load postings declined by 61.2%. Spot rates for van freight fell 0.3% in May from April numbers, while flatbed spot rates fell 0.9%. Temperature-controlled rates actually rose 2.1%. Those numbers, however, look dismal when compared to May 2022. Van rates fell 23.7%, flatbed 22.5% and refrigerated 20.3% year over year. As of this writing, spot rates for both van and refrigerated freight have risen by two cents in June, while flatbed rates are holding steady at See UPTURN on PAGE 22 FLEET FOCUS Load boards can be great for business if used wisely iStock Photo Load boards can be a key to your business’s revenue stream. Choose carefully and provide great service and they’ll help keep you running. CLIFF ABBOTT | SPECIAL CORRESPONDENT The decision to buy a truck is a big one. It can be far more significant than simply deciding to own the truck you’ll be driving. You’re actually starting a new trucking company — and you are now responsible for managing it. The simplest way to do this is to lease your truck to an established carrier, which will handle many of the tasks associated with the business; you’ll be paid either a percentage of the load revenue or a rate per mile. Some owner-operators, however, prefer to be fully independent, finding their own freight and operating under their own authority. Some can contract with customers for enough freight to keep the truck (or trucks) running, but most depend on freight brokers or load boards to stay busy. In fact, some owner-ops that are leased to carriers use load boards to find return loads or supplement work they do for the carrier. The load board concept is a simple one: Shippers with available loads, or brokers who are arranging transport for them, post information about the loads to one or more load boards. Truckers choose the load they want, contact the shipper or broker, and finalize arrangements. In reality, however, there are more variables to consider. Many load boards also allow you to post the availability of your truck. You can list the date and time your equipment will be available and where, plus your contact information. Some load boards are free, while others charge a subscription price. Some boards provide tools and services that help you make the best choices for your business. Before booking the first load, it’s best to understand how the load board works and what services are available so you can make intelligent choices. One consideration is the volume of freight the load board handles. DAT, for example, claims to handle 357,000 exclusive daily loads and is the largest load board by volume. A basic subscription is $45 per month, while the most expensive, which offers more services, is $135. The load board at TruckStop.com is quite popular and offers subscriptions ranging from $39 to $149 per month. Another board, TruckerPath, offers plans priced from $30 to $110 per month. An internet search for “free load boards” will also provide results. The services provided, however, may not be as robust as the paid ones. Some large brokerages, such as CH Robinson, have their own load boards. The advantage in this is that you’ll always be dealing with the same broker, while the disadvantage is you won’t see as large a variety of freight. When choosing a load board, consider the services offered. You’ll want to know if the broker or customer offering a load you’re interested in is creditworthy. Many load boards allow you to request a credit check, either as a part of your subscription fee or for an extra charge. Some allow you to check credentials, such as FMCSA authority or a valid surety bond. Some allow drivers to provide carrier reviews, so you’ll be able to See FLEET FOCUS on PAGE 22
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