GLG News by Mr. Jay Thompson, President and General Manager
GLG News is now G+ Insights
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Trucking Company Failures & Key Indicators For The Future = Freight + Fuel + Financing + Focus
August 21, 2008
Johnson Xpress Trucking To Close - BB&T sues for recovery of $8.3 million | www.courier-journal.com
Smaller-sized trucking companies make up 80% of the industry. As failures continue, it exposes the primary causes experienced by all, individual ones that contribute for the specific company, how different parties are affected, and how others’ benefit. It also brings to light the key issues facing transport companies looking to grow in the future - Freight (demand), Fuel (cost management), Financing (equipment / cash management) and Focus (value / traffic lanes).
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Cummins Now Going Selective Catalyst Reduction (SCR) With All Engine Models
August 14, 2008
Cummins to Add SCR to 2010 Engines | www.truckinginfo.com
Cummins Inc. announced they are switching to SCR in their Heavy-duty ISX model for 2010. It was previously to utilize Exhaust Gas Recirculation (EGR) at a higher rate than today, along with higher injection pressures and other enhancements - plus emissions credit trading. While this changes the “few changes” pitch they had for 2010, this puts them more in line with the rest of the marketplace. Now - how about Navistar and any 2009 pre-buy implications?
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A Successful Truckload Model - And A Growing Contractor Program - Here’s Why
August 12, 2008
Schneider National Owner-Operators Now Paying Just $1.085 for Diesel | www.wisbusiness.com
Truckload leader Schneider National has freight - and has been successfully growing their Independent Contractor segment for over a decade, while their competitors have not seen the same success. The primary reasons are they have freight (miles), continue to adjust their program, made it more transparent (and fair) and help with the major issues. While I agree with my colleague Mr. Schultz on the focus on fuel in selling their programs, this has been such since the ‘90’s. There is more that is making their program one of the best - and they will continue to successfully grow!
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SCR versus EGR Diesel Marketing - It’s Changing Some Minds Already
August 4, 2008
Mack's McKenna Talks SCR Via The Web | www.truckinginfo.com
Volvo Mack Division has started a smart project to educate users, dealers and other interested parties on the positives and negatives of Selective Catalyst Reduction (SCR) using Urea versus Exhaust Gas Recirculation (EGR). In March of this year, Daimler Detroit Diesel Division started to educate the market about their SCR approach. Some surveys showed an overwhelming bias toward EGR for 2010, but that is changing with this type of “educational” marketing. This has major implications for OEM market share potential and 2009 pre-buy considerations.
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Truck Makers And Dealers Say No Growth Expected For Remainder Of 2008
July 30, 2008
Rush Enterprises Reports Second Quarter Results | www.truckinginfo.com
Some analysts had predicted a second half upswing in US truck sales, but it will not be. Major manufacturer Paccar and their largest Peterbilt dealer (and largest of any dealer organization) - Rush Enterprises - each say that the US market will remain flat through this year. Volvo recently stated the same in their mid-year assessment. We can still only hope for something of consequence in 2009.
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July 22, 2008
Sterling Truck workers worry massive loss of jobs permanent | lfpress.ca
Truck sales are slow with no signs of any significant bump coming. In 2006, Daimler Trucks North America (DTNA) announced a $300MM investment in a new plant in Saltillo, Mexico to build 30,000 Freightliner and Sterling trucks annually starting operations in 2009. Union leaders in Canada are understandably concerned about the future of DTNA - Freightliner Sterling Division’s future manufacturing presence in Quebec. History will most probably repeat itself - and most of the future production growth will be done In Mexico.
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New Truck Price Increases Being Successfully Implemented - Even With Slow Sales
July 16, 2008
Navistar Raises Prices on Trucks | www.truckinginfo.com
Commodity price increases with manufacturers are like fuel surcharges for freight carriers. They need to be passed on to maintain profitability. There are ways to do it - if the marketplace, timing, positioning, sales approach, etc. allow for it. It looks good for Navistar to be successful in doing such.
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Expected Simpler (Less Expensive) Diesel Emissions Reduction Systems Are Coming For SCR
July 9, 2008
Argonne Lab Licenses New Catalyst to Cut NOx | www.truckinginfo.com
The Selective Catalyst Reduction (SCR) versus Exhaust Gas Recirculation (EGR) approaches have already been previously written about - including from me last week. The referenced article shows us one coming approach that may replace the need for urea (ammonia) in SCR applications. More SCR options are under development. What it also shows is what many of us have been already saying - that SCR-type approaches is where all will most probably end up.
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Clearing The Air In 2010 With EGR Diesels Versus SCR - Or Not
July 3, 2008
Averaging Has Given Engine Makers Flexibility to Meet Emission Targets | www.ttnews.com
The referenced article explains better than most on how Exhaust Gas Recirculation (EGR) can work in 2010 through emissions’ credit averaging, banking and trading. Several of us in the past in these missives have addressed this. One can’t technically get to 2010 levels on individual engines with EGR alone therefore requiring things such as Selective Catalyst Reduction (SCR), NOx absorbers or other approaches. The messages from the manufacturers will be fuel mileage v. heat v. how green v. ????
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June 26, 2008
FFE Begins Temperature-Controlled Charge | www.truckinginfo.com
Frozen Foods Express has announced that they will be implementing a Temperature-Controlled Surcharge that will be added to their truck fuel surcharge. While it will probably be slower in getting implemented throughout the industry than many wish, it should be a positive for the segment (and for other temp-controlled modes). Another positive is that it has a good chance of working since all of us eat regardless of the economy. It may also make brokers more honest (or squirm more). The bad news is that it will add to the final product cost we all pay.
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Volvo / Mack Least Affected In US By Cat Deal - Plus Volvo Chief Sees No Market Growth In 2008
June 20, 2008
Volvo CEO holds to Europe, N.America outlooks | uk.reuters.com
In rounding out thoughts regarding the previously noted Caterpillar-Navistar deal, Volvo and their Mack subsidiary are the easiest to summarize. They are not greatly affected in the US, but may be in overseas markets after the joint venture gets going. Also separately, the Volvo chief is confirming what many of us are predicting - flat sales for 2008 v. 2007.
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The 2010 US Diesel Engine Landscape - Paccar’s Approach Will Be Most Changed Without Cat
June 19, 2008
Number-crunching the Cat deal | fleetowner.com
Paccar’s US brands of Peterbilt and Kenworth are losing their long-time Caterpillar big bore premium image-partner in 2010. Their engine strategy has been one that has included outsourced engines for Class 7-8 from Cummins and Caterpillar, along with a Paccar-branded Cummins 7 & 8 Liter engines for the midrange segment. Their 2010 strategy will include all SCR engines except for the 15 Liter Cummins, which is still planned to be EGR. This transition including their new DAF-based engine models could be the most interesting.
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The US Diesel Engine Landscape Is Clearer - Daimler’s US Approach Has A New Option
June 18, 2008
Daimler Expands Engine Offerings | www.todaystrucking.com
Daimler Truck North America (DTNA)’s US brands of Freightliner, Sterling and Western Star are losing the long-time Caterpillar big bore option and replacing it with Cummins. While those numbers are small, it seems to have firmed up Daimler’s US engine strategy with Detroit Diesel, Mercedes and Cummins engines. This missive will look at Daimler’s US approach with other major players’ to be offered separately.
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The US Diesel Engine Landscape Is Clearer - Navistar’s / Caterpillar’s “Star” Looks Brighter
June 17, 2008
Caterpillar And Navistar Team Up On Trucks | www.forbes.com
The Caterpillar / Navistar rumors were finally put to rest last week. There will be few short-term implications and surprises, but the longer-term stage for truck and engine makers is much clearer now. Cat will not totally exit the on-highway market as some thought, but will only be offered in a different form in Navistar’s. This missive will look at Caterpillar / Navistar with other major players’ to follow in separate ones.
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June 16, 2008
Trucking Insurance Industry Journal The Roemer Report: Big Trucks Slow Down in Response to High Fuel Prices | www.insurancenewsnet.com
Many in business and fellow consumers around the world look to their governments to help ease the impact of the record high fuel prices. Many try to pinpoint and then demonize the culprit in the system or process, but like many things it’s a combination of issues. Others are doing something about it - and one way is to simply slow trucks down - just as steamship lines are doing. Auto drivers (including myself) are doing the same with similar results (big numbers).
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Teamster’s Driving Auto Hauling Segment Away
June 12, 2008
Union Car Haulers Walk Off Job in 15 States | www.forbes.com
The auto hauling segment has been on a rough road. It will continue, especially on the new vehicle side. Used (cheaper) car sales are not hit as badly. The excess hauling capacity will be slow in recovering for a number of reasons. My colleague Mr. Schultz offers a good prognosis of Performance Transportation Services and the Teamsters - and I agree that it won’t be noticed, so I’ll try to offer some color on some whys.
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A Couple Winners Already In CA Ports Emission Rules
June 4, 2008
Diesel risks mostly hot air? | washingtontimes.com
There will be winners and losers the Los Angeles / Long Beach ports emission rules. A couple potential winning segments that do seem clear are forward-thinking financiers of compliant trucks or fleets offering lease-financing programs with the same. Also, watch how others look for ways to keep fixed and labor (non-union) costs down. My colleague Mr. McWilliams offers a good approach for some of the freight flowing through the ports, so I’ll take a stab at the majority of it today.
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Main Problem With Today’s Trucking Company Failures
May 30, 2008
Pricey diesel fuel drives up trucking companies' costs | www.signonsandiego.com
Trucking company failures have accelerated to a point where year-over-year bankruptcy numbers have doubled. We then must add in those who have shut down or just parked their equipment. The primary issues are freight rates plus fuel surcharge versus real fuel costs. That problem continues with both the rating of freight and with carriers accepting said rates. Cash flowing fuel costs isn’t really a big deal as compared to the actual revenue / fuel expense gap - and those business problems continue.
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2010 Truck Prebuy Plans Continue To Soften
May 22, 2008
Fleet Sentiment Report Looks at Purchasing Plans | www.truckinginfo.com
Many manufacturers, trend predicting entities and investors had convinced each other of another significant truck pre-buy heading into the 2010 diesel emissions changes. Those expectations could not be reconciled with reality - but continue to square with time. More realistic expectations will be more toward the normalized historical trend line - hopefully at least back up to the 220,000 Class 8 number for 2009. That is if the economy doesn’t head the way it seems to be going!
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The US Postal Service “Could” Be a Big Player Affecting UPS / FedEx - If…..
May 21, 2008
Transportation: Solving The Parcel Express Puzzle | www.logisticsmgmt.com
We all know both United Parcel Service and FedEx have implemented substantial rate increases for small shipments, driving shippers to look for alternatives. I agree with my colleague Mr. Schultz’ comments on the article, but will flavor it with actual decisions being made today. Will this have an impact on UPS and FedEx? It is and could more!
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