18 DC VELOCITY FEBRUARY 2014 www.dcvelocity.com
newsworthy
The headlines during 2013 told the story of an industry
seemingly down on its luck. But the day-to-day shipping
world told a different tale.
A monthly seasonally adjusted for-hire tonnage index
published by the American Trucking Associations (ATA)
increased by 0.6 percent in December from the prior
month. The December increase, coupled with a revised
4.7-percent jump in November over October’s levels,
pushed the index 6. 2 percent higher for 2013, its best year
since 1998.
The December index represented a record monthly high
and an 8.2-percent gain from December 2012. In addition,
the November increase was revised sharply upward from
the 2.6-percent gain originally reported in late December,
the group said.
The “not seasonally adjusted” index, which represents
the change in tonnage actually hauled by the fleets before
any seasonal adjustments, equaled 123.0 in December. That
was 1. 4 percent below the previous month, ATA said.
Bob Costello, ATA’s chief economist, said the fourth-quarter results confirmed that tonnage levels accelerated strongly in the second half of the year and that the U.S. economy
is now in better shape than is widely believed.
“I’m seeing more broad-based gains now. The improve-
ment is not limited to the tank truck and flatbed sectors
like earlier in [2013],” Costello said. He said tonnage levels
should remain strong in 2014 with a pickup in manufactur-
ing and consumer spending as well as continued demand
for trucks to support the growth of hydraulic fracturing for
shale oil and gas deposits.
The second-half strength came amid the trucking industry’s ongoing struggles to cope with increased government
regulations, a shortage of drivers in some areas of the
country, cost inflation for a wide range of equipment, and
increased competition from rail intermodal services that
has led to a secular decline in the market share held by
truckload carriers.
“AN ATYPICAL PATTERN”
The ATA index was not the only positive data point for
trucking activity. Non-contract, or “spot market,” truck
loads in December soared 45 percent over 2012 levels,
according to data released in mid-January by DAT, a
Portland, Ore.-based consultancy. The December results
were 10 percent above November figures, the firm said.
The numbers are surprisingly strong given that December
is generally a quiet seasonal period and that inclement
weather during the month often has a dampening effect
on freight volumes. A spokesman for DAT called the year-
over-year and sequential results an “atypical pattern.”
The remaining one-third was related to more
seasonal factors such as a pickup in construction
activity during what is normally a slow period and
a pull-forward in ordering by users of raw materials
ahead of expected 2014 commodity price increases,
the firm said.
Ironically, truckers may have received a
fourth-quarter windfall from the problems faced by
parcel giant UPS Inc. in delivering holiday packages.
Confronted with a deluge of late-arriving orders
for pre-Christmas delivery and with its network
stretched to the limit, UPS soaked up significant
truckload capacity—at very high rates—just to get
line-haul packages to their destinations, according
to two people familiar with the matter.
—M.S.
Truckers push through gloomy headlines to post
best results since ’98
Menlo Logistics has opened the new Shah Alam Section 15
warehouse in Selangor, Malaysia. This facility, which will
employ 60 people locally, features 101,231 square feet of storage space. … Southeastern Freight Lines, a provider of regional
less-than-truckload transportation services, has opened a new
service center in Jacksonville, Fla. The service center features
125 dock doors, 22,000 square feet of office space, and more
than 19,000 square feet of warehouse space. … NorthPoint
Development has executed a long-term lease with Smart
Warehousing for a modern 575,000-square-foot distribution
center to be built at Logistics Park Kansas City, known as Inland
Port IV. Smart Warehousing is a third-party logistics service
company that offers warehouse management services and
technology. … Flagler Global Logistics (formerly South Florida
Logistics Services) has opened its South Florida Logistics Center.
Located adjacent to Miami International Airport, the 200-acre
intermodal logistics complex offers multimodal transportation
access, Foreign Trade Zone advantages, and refrigerated cargo
options.
ground breakers
