DC Velocity - February 2010

LTL carriers hike rates amid
a weak environment

The less-than-truckload (LTL) sector is a basket case, with weak volumes, significant overcapacity, and carriers undercutting each other on price. But that hasn’t stopped three of the big boys from raising their tariff rates for 2010.

Old Dominion Freight Line, one of the nation’s largest LTL carriers, has raised its non-contract rates by 4. 4 percent. ABF Freight System Inc. imposed a 5.7-percent hike, while FedEx Corp.’s two LTL units, regional trucker FedEx Freight and FedEx National LTL, raised their tariff rates by 5. 9 percent. All of the increases have taken effect.

In mid-December, UPS Freight, another LTL trucker, announced a 5.7-percent rate increase on non-contractual business, which went into effect Jan. 4.

However, Con-way Inc., another big LTL carrier, has not publicly announced pricing actions for 2010. And a spokeswoman for YRC Worldwide Inc., the largest LTL carrier by sales, did not respond to a query about its rate actions by press time. ;

—M.S.

consulting group upbeat on rail
carloadings

Rail carloading activity should pick up in the next few months, a leading transportation research firm said Jan. 14, a day after a rail industry group reported that carloadings in 2009 fell to their lowest levels in 22 years.

FTR Associates of Nashville, Ind., forecast that car-
loads would be 4. 6 percent higher in 2010 than in
2009. “We expect to see comparisons turn modest-
ly positive in the first quarter and then to accelerate
later in the year,” said FTR President Eric Starks. “We
will remain cautious about our outlook for all trans-
portation segments in the short term, but we are
confident that the worst is over.”
FTR’s upbeat forecast comes one day after the
Association of American Railroads (AAR) issued a
report showing that 2009 carload traffic—excluding
intermodal traffic—was down 16. 1 percent from
2008 levels and had plumbed depths not seen since
1988. In December, carloads were down 4. 1 percent
compared with December 2008, and down 17. 6 per-
cent compared with December 2007, primarily due
to declines in coal carloadings, AAR said. ;

—M.S.

newsmakers

; Fortna has announced changes to its executive management team. After 20 years as president, Peter Counihan has been promoted to chairman and CEO. Counihan will maintain an active role within Fortna and continue his focus on business strategy and industry relationships. John A. White III has been promoted from executive vice president to president. White will manage U.S. and Canadian operations and personnel, as well as participate in all strategic decisions for the firm outside of North America. Additionally, Mike Dunn was appointed group vice president of sales.

; TGW-Ermanco, an integrated logistics solutions provider, has announced that Kevin Tedford has joined the company as vice president of software development and engineering. In this role, Tedford will be responsible for providing the necessary leadership in TGW’s North American software development efforts. In addition, Roger Potter has joined the company as manager - controls engineering. Potter will be responsible for developing TGW’s controls standards and products, and for leadership in all phases of the company’s controls engineering projects.

TESTA

; Onset, a supplier of data loggers, has hired Justin Testa as the company’s new president. With more than 28 years of sales, marketing, and general management experience, Testa brings a strong background in product management and marketing strategy to Onset. Most recently, he served as the executive vice president and business unit manager for Cognex Corp.

; Norman E. Saenz Jr. has joined TranSystems as assistant vice president for its Central Region. Saenz has 19 years’ experience in the supply chain industry and has completed over 100 consulting projects. In his new position, Saenz will develop client relationships and will serve as project manager for logistics network optimization, distribution center planning, and software solutions projects.

; Port San Antonio has announced the addition of Antonio R. Salinas III to the facility’s team of business development managers. Salinas will focus on the growth of domestic and international logistics offerings at Port San Antonio’s East Kelly Railport.

SALINAS

; Dean Wise has joined the BNSF Railway Co. as vice president, network strategy, with responsibility for the railroad’s haulage management, interline management, network strategy development, public-private partnerships, and short line business development functions. Wise, who had been a partner at management consultant Norbridge Inc. since 1995, will also serve as a member of the BNSF executive team.