Trucking news and briefs for Wednesday, Aug. 14, 2024:
Driver transported cocaine from Texas to Ohio, pleads guilty
A Texas-based truck driver pleaded guilty to possession of 20 kilograms of cocaine with intent to distribute, according to a press release from the U.S. Attorney’s Office for the Northern District of Ohio.
According to court documents, on May 31, 2024, Ohio State Highway Patrol (OSHP) officers encountered Javier Eduardo Gutierrez-Quintana, 47, of El Paso, who was driving a commercial vehicle bearing a Texas license plate and registration. A second OSHP officer deployed a K-9 near the Gutierrez-Quintana’s truck, and it subsequently gave a positive signal for narcotics.
Gutierrez-Quintana consented to a search of the truck, and three black duffle bags containing 20 blue-taped packages were found during the search. Upon the discovery, Gutierrez-Quintana admitted to investigators that he knowingly transported 20 kilograms of narcotics from El Paso to the Youngstown, Ohio area, where he was scheduled to meet with an unknown person or persons and deliver the packages. Laboratory testing confirmed that the packages contained cocaine.
Sentencing is scheduled for Nov. 22. Gutierrez-Quintana faces a maximum penalty of 20 years in prison for possessing narcotics with intent to distribute. He also faces a period of supervised release, restitution and monetary penalties.
The investigation was conducted by the DEA and the Ohio State Highway Patrol. Assistant U.S. Attorney David Toepfer for the Northern District of Ohio prosecuted the case.
[Related: Truck busted with $835K in marijuana in load of auto parts]
Trucking conditions remained slightly positive in June
Market conditions for trucking companies stayed in positive territory in June, but weakened from May, according to FTR’s monthly Trucking Conditions Index (TCI).
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The TCI fell to 0.95 in June from May’s 2.24 reading, but the firm noted an improvement in core freight dynamics for truckers during the month. Higher financing costs and a slowing of diesel price decreases were substantial offsets, however, FTR said.
FTR expects general improvement in market conditions for carriers, but the TCI could see both positive and negative readings in the coming months before the index turns consistently positive by the end of this year, according to FTR’s current forecast.
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“Today’s market might feel as weak as it has been, but we continue to see a growing foundation for a recovery in financial conditions for trucking companies,” said Avery Vise, FTR’s vice president of trucking. “Strengthening capacity utilization sets the stage for firmer freight rates starting late this year and accelerating somewhat in 2025. Although nothing approaching the likes of 2021 is on the horizon, carriers should be seeing considerably more favorable conditions by next spring.”
Proficient Auto Logistics announces acquisition
Jacksonville, Florida-based Proficient Auto Logistics (PAL), formed earlier this year through the merger of five auto hauling fleets, announced in its quarterly filing this month that it is acquiring Auto Transport Group (ATG).
The acquisition is expected to close this month. The terms of the deal were not disclosed.
“We expect to close on the acquisition of Auto Transport Group during August,” said PAL CEO Rick O’Dell. “ATG is based in Ogden, Utah, and this strategic acquisition enhances the density of our coverage in the West.”
O’Dell, former CEO and non-executive chairman of Saia Inc., added that ATG “will maintain its strong brand within the Proficient Auto Logistics umbrella of companies,” with ATG CEO Brent Larson leading the company.
“ATG has an outstanding management team, great service, robust technology platforms and industry leading margins,” O’Dell said.
The timing of the acquisition is so close to the founding of PAL that O’Dell said ATG “is essentially a sixth founding company.” The other five founding companies were Proficient Auto Transport, Delta Automotive Services, Tribeca Automotive, Deluxe Auto Carriers, and Sierra Mountain Group.