Trucking news and briefs for Thursday, Nov. 14, 2024:
Owner-op survey shows signs of market optimism
The results of a recent third-quarter survey from Bloomberg and Truckstop, polling owner-operators and small fleets, found that carriers who have faced challenges with weak demand and low rates are now seeing signs of improvement ahead, though some are still considering a shift in their careers.
“Despite greater optimism over the outlook, more carriers expressed an intent to leave the business than in our prior survey,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “An acceleration in carrier exits could speed up the market’s return to equilibrium and provide a better backdrop for rates next year.”
[Related: 178,000 CDLs scheduled for downgrades due to drug/alcohol viols]
The Bloomberg | Truckstop Q3 survey also showed that while spot rates were still suppressed in the quarter, falling 17% on average excluding fuel according to respondents, more owner-operators had a positive outlook on rates. An increase over the next 3-6 months was expected by 29% of carriers, 6 percentage points higher than the survey three months ago. There are indications that the market is moving closer to equilibrium. Truckstop’s Market Demand Index for the North American trucking market increased 13% on average in Q3 from last year, the third consecutive quarter of year-over-year gains.
According to FTR and Truckstop’s most recent weekly report for the week ended Nov. 8, the total broker-posted spot rate during the week decreased more than 3 cents from the previous week — the largest weekly decline in 11 weeks. Spot rates excluding a calculated fuel surcharge, however, were 9% higher than the same week in 2023 and were higher year-over-year for all equipment types.FTR, Truckstop
Bloomberg and Truckstop’s quarterly survey also found that demand may gradually increase. Sentiment going forward appears to be more optimistic, the companies said, even though carriers continued to see lower volume in Q3, with 56% of respondents noting weaker demand compared with last year. Higher volume over the next 3-6 months is expected by 40% of carriers, 7 percentage points better than the Q2 survey.
An improved demand outlook could also lead to more carriers buying equipment, with 24% of respondents saying they might make a purchase in the next 3-6 months, 3 percentage points better than the Q2 responses. Weak demand was cited by 34% as the main reason for not buying.
Truckstop and FTR’s latest weekly update showed load postings were 17% higher than the same 2023 week but about 20% below the five-year average. Total truck postings increased 2.3%, and the Market Demand Index — the ratio of load postings to truck postings in the system — declined to its lowest level in six weeks.FTR, Truckstop
Finally, the Bloomberg | Truckstop survey, despite increasingly positive findings, revealed a measure of uncertainty among carriers about their future in the trucking business. More carriers saw themselves exiting the industry, with 15% saying they believe they’ll be out of trucking in six months, 6 percentage points higher than the Q2 survey. Excess capacity has been slow to leave the market, the firms noted, and any acceleration could help spot rates move higher, setting up for a better 2025.
“Carriers are optimistic that the toughest times are now behind them,” said Kendra Tucker, Truckstop CEO. “Truckstop continues to be a trusted partner, empowering carriers to thrive in a dynamic market with innovative solutions designed to help them to manage, safeguard and expand their businesses.”
[Related: Will Trump tariff policies send freight rates skyrocketing?]
Goodyear opens nomination period for Highway Hero Award
The Goodyear Tire & Rubber Company is putting out a call for nominations for its annual Highway Hero Award. Since 1983, Goodyear has been recognizing commercial truck drivers who go above and beyond their regular duties to keep our highways safe.
Now through Dec. 31, Goodyear is inviting nominations for drivers with a CDL who went the extra mile to help others on the road. Goodyear is eager to hear from drivers across the commercial industry, from long-haul truckers to dump truck drivers, regional delivery and vocational vehicle operators and more.
“Commercial truck drivers are not only at the center of the supply chain industry, but they also act as vigilant guardians of the roads, ready to assist others in need,” said Joe Burke, vice president, Goodyear North America Commercial business. “For over four decades, the Goodyear Highway Hero Award program has celebrated remarkable contributions of professional truck drivers who have acted selflessly for the good of others on the road.”
Nominations can be submitted online here. Goodyear will determine an approved list of nominees from which a panel of judges will select one winner and up to two finalists. Goodyear will announce the award winner in 2025, honoring the driver with cash prizes and a ride on the Goodyear Blimp. Up to two runners-up will also receive a cash prize.
Eligible nominees for this year’s Highway Hero Award must be a full-time commercial driver with a valid CDL, reside in the U.S. or Canada and be actively operating a commercial, infrastructure, vocational vehicle or non-lifesaving emergency vehicle with rim size greater than 19 inches. The commercial trucker must be on the job at the time of the heroic incident and the act must have occurred between Jan. 1, 2024, and Dec. 31, 2024.
[Related: Two truckers are Goodyear Highway Hero 40th grand prize winners]
Mackinac Bridge to begin collecting credit card fees
Michigan’s Mackinac Bridge Authority (MBA) voted recently to enact a 2.3% “convenience fee” for tolls paid by credit cards to recoup what MBA said are “increased costs for credit and debit card transaction fees.”
Authority members cited the rising costs of transaction fees from credit card companies, which have totaled $341,761.51 in 2024, as the reason for the new convenience fees. The current average credit card fees for tolls paid is 3.07%; roughly 12%-13% of all tolls are paid by credit card.
Noting the relatively higher credit card processing fees for American Express, currently at 4.79%, MBA will no longer accept those credit cards for payment beginning Jan. 1, 2025.
“Though this convenience fee will not cover all credit card processing costs, it will help defray those costs in a way that will allow us to continue directing most of our toll revenues to the never-ending job of maintaining and operating the Mackinac Bridge,” said Authority Chairman Patrick “Shorty” Gleason.
The current toll for non-passenger vehicles, including tractor-trailers, to cross the bridge is $5 per axle. Passenger vehicles are charged $2 per axle, or $4 per car. The new fees will add 11.5 cents per axle for trucks to cross the bridge.
The new fees will take effect Jan. 1, 2025.
Customers who pay in the toll lanes can avoid the credit card fees by paying cash. MacPass holders can make deposits with cash or electronic checks to avoid the fees. The MBA also approved lower minimum MacPass deposits, reducing the initial account minimum deposit from $80 to $40, and lowering refill deposit minimums from $50 to $20. Those changes are expected to take effect Dec. 1, or as soon as possible, the Authority noted.
[Related: Beware toll road text-message collections scam: FBI]