GLG News by Mr. Jay Thompson, President and General Manager
GLG News is now G+ Insights
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G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.
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Survey Shows US Citizenry Still Don’t Like Mexican (Or Any) Trucks
August 16, 2009
Poll shows most Americans oppose allowing Mexican trucks in U.S | www.thetrucker.com
The referenced Rasmussen Reports national telephone survey indicated that Mexican trucks are not welcome here in the US by a two-thirds margin. Over 70% of people against it are over 40 years old - and men way more so than women. Sixty-eight percent of investors agree! There is more to this undercurrent, so here are some thoughts.
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2010-Compliant Diesel Truck Price Increases Out - The Changing Purchase Paradigm
August 14, 2009
Daimler Trucks North America Announces Pricing For Detroit Diesel BlueTec and Cummins Emissions Technologies to Meet EPA 2010 Standards | www.daimler-trucksnorthamerica.com
The major truck manufacturers have announced their price increases for 2010 emissions-compliant engine-powered trucks. For Class 8 trucks, Daimler Trucks North America (DTNA) targeted their SCR “surcharge” at $9,000 - lower than Volvo Trucks SCR at $9,600 and higher than Navistar A-EGR at $8,000. While some may think a single-digit percent price increase is tolerable for the industry, we can only say that planning has accelerated to change future purchase plans.
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Impact Of Battery Technology Within Industry? History Says...
August 11, 2009
Big 3, Michigan win big in battery grants | www.detnews.com
The referenced Detroit News article outlines where a little over half of the $2.4B Federal Grant for battery development will go in Michigan and Indiana. The rest will go to a variety of entities, which opens up discussion on the complexity of an old discussion regarding electric cars.
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Is YRCW’s On-Road Disconnect A Metaphor For Their Business?
August 5, 2009
Big rig trailer detaches on I-390; driver keeps going | www.democratandchronicle.com
With all of the discussion about YRC Worldwide financials in the news, it is often good to flavor the discussion from a practical sense. Our colleague John Schultz has covered the current YRCW issues well in his recent GLG articles, so we’ll stick more to input from ground level - mostly labor questions. I can’t believe the questions we got on this - from a business perspective and as an old part-time trucker!
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ATA Freight Tonnage Index Follows Members Financials - Quick Overview & Comments
July 29, 2009
ATA index shows freight tonnage down again | www.todaystrucking.com
American Trucking Associations (ATA) freight index is a good indicator of trends with their major fleet members. As said in the past by premier ATA forecaster Bob Costello, it’s good for showing increasing / decreasing trends over time. Their current readings show things are flat - and allows for a quick review of some of the major players recent performance, along with some comments.
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Ingersoll-Rand Sales Signaling End Of Recession? - Not So Fast
July 27, 2009
Ingersoll-Rand sees signs recession is almost over | www.marketwatch.com
Transport refrigeration unit sales have traditionally been a reliable predictor of economic activity. Like with truck engines, government regulations change traditional buying patterns. We believe that increased reefer sales are more about California Air Resources board (CARB) mandates than any economic recovery.
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Fleets Execs Discuss Trucking Equipment Financing Lax Default Effects
July 19, 2009
Fleet Panel Says Banks Reward Struggling Carriers | www.truckinginfo.com
At the recent Truckload Carriers Association Refrigerated Carrier meeting, several fleet operators made comments regarding equipment financing - including availability, interest rate increases, problems with unprofitable fleets continuing to run without making payments and expectations for the future. It allows for comments regarding capacity reductions, trucking profits and future truck sales.
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Major Truck Stop Competitors Merging - Flying J + Pilot = Higher Retail Prices?
July 16, 2009
Flying J and Pilot to merge | www.etrucker.com
The truck stop (uh - travel center) landscape had changed dramatically since deregulation. The merger of Pilot & Flying J essentially doubles the size of the previously two largest competitors in the marketplace. The combined entity has implications to their competitors, along with those providing services to them - and truckers.
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The Anatomy Of Trucking Business Failures: A Series Of Events + Some Thoughts About YRCW Labor
July 12, 2009
YRC Worldwide: Jimmy Hoffa Would be Proud | shar.es
The referenced article and our esteemed colleague John Schultz offers up an interesting contrast in opinions regarding the impact of labor in YRC Worldwide’s problems. I agree with his general thoughts but labor has been an issue in both Yellow’s and Roadway’s since deregulation - with USF’s becoming moreso after they were bought by YRCW.
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Oil Companies Should Be In Some Alternative Energy Markets - Eventually
July 8, 2009
BP shuts alternative energy HQ | www.guardian.co.uk
BP downsizing their alternative energy investment arm is putting them in line with other majors. While they are lessening their activity in some areas, they continue in others where they make sense. As an active partner in an alternative energy company and having been in many meetings with majors, I have understood and reluctantly agreed with their lack of enthusiasm to get too involved in the alternative sector - yet!
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June 25, 2009
The ups and downs of diesel | www.chron.com
The referenced article notes that diesel fuel prices look like a bargain compared to last year. OK - $4.65 per gallon last year v. $2.60 per gallon per EIA is significant, but that comparison is not fair. The real issue to freight planners is the effect of price as compared to historical GDP (e.g. we have doubled cost averages over the last 5-years at today's prices) - and it’s getting uglier again too quickly.
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Con-way LTL Marketing Approach For TL Business Blends Models More & Is A Good Move
June 18, 2009
Con-way says new LTL pricing plan will 'transform' trucking industry | www.thetrucker.com
Con-way just announced a new Less-Than-Truckload (LTL) pricing model - True LTL - that caps the price of shipments at that of Truckload (TL) for heavier LTL shipments in certain traffic lanes. Con-way says that their new LTL pricing model will transform the trucking industry. I’d say it’ll probably have an impact within the LTL dry community, but not so much the rest of the transport industry. I still like it!
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YRC Tells Customers That They Won’t Seek TARP Funds Now
June 15, 2009
YRC will not seek federal TARP aid | www.buffalonews.com
After receiving feedback from customers, YRC Worldwide yesterday issued a correspondence that says they won’t ask for or take TARP (Troubled Asset Relief Program) funds. As written on 5/15 by my colleague John Schultz and me, there were plenty of issues with the request at ground level. YRC will continue to highlight the Teamster Union pension payment issues.
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Trucking Technologies Survey Gives Insight Into Equipment Purchase Trends & Plans
June 9, 2009
Trucking embraces technology | fleetowner.com
According to a Frost & Sullivan survey taken 12/08-1/09, there has been a major change in trucking fleet priorities - and what they will pay for them. Also implied is that this is where most future profits exist for manufacturers and suppliers. While all of this is true, government “forced” rules compete with productivity-related products for priority, while trucking companies fight for basic profitability. Overall, this is a great survey to garner insight from.
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Navistar Advanced-EGR Gamble From A Retail / User Perspective
June 5, 2009
SCR court battle heats up | fleetowner.com
Many large and smaller size truck buyers are leaving options open regarding buying Navistars’ Advanced Exhaust Gas Recirculation (EGR) and everyone else’s Selective Catalyst Reduction (SCR) for 2010 emission rules. The move by Navistar is probably due to a mix of issues noted, but the 13 v. 15 Liter issue with truck buyers must be thrown into the mix. Our colleague Mr. Moser knows the SCR-EGR issues better than most, so I’ll comment on the buyers’ side.
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FTR Associates Says We Are At Freight Bottom - Here Are Thoughts On The Road Ahead
June 1, 2009
FTR Economist Sees Bottom of Freight Recession | www.truckinginfo.com
Freight is often viewed as an indicator of general economic activity and the premier forecasting group FTR Associates recently reported that we have found a bottom. The key words therein are ”the current recession is U-shaped - not V-shaped - and we’re now bouncing along the bottom of that U.” The big issue not commented on is oil speculation - again, which is causing some of the planners we work with a note of caution , along with noting the tax / spending issues. Some logistics segments will fare better than other, which we will comment on in the following.
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May 29, 2009
Senators Take Up Transport Policy | www.joc.com
If we take the current Central Government Planning atmosphere, add in special interests who don’t really understand supply-chain management, throw in the anti-oil company / global-warmers, top it off with a way to tax more somehow - and we have the makings of more bad policy. I guess this is change! We need to clean out the current crop of legislators (both parties) and get back to business & logic.
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Truckload Carriers Calling A Freight Bottom - Finally? But Less-Than-Truckload Is A Different Story
May 22, 2009
Truck Freight Might Be Seeing Bottom | trailer-bodybuilders.com
In March / April of this year, we were noting in GLG articles that the 3+ year Truckload (TL) freight decline was most probably nearing its bottom, but that Less-Than-Truckload (LTL) still had many problems. Per the referenced article from the recent Wolfe Research Global Transportation Conference, some major transport players are saying that TL is showing some positive signs while LTL isn’t. It offers a great summary from major trucking company top management.
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Truck & Trailer Buyers Staying On Track In Addressing With Freight Demand v. Capacity Approaches
May 15, 2009
Fleet Sentiment Report Looks at Equipment Buying and Usage | www.truckinginfo.com
CK Commercial Vehicle Research released their Second Quarter 2009 Fleet Sentiment Report, which gives some insight into truck / trailer buyers approach to equipment planning. As we wrote recently about the math questions, this supports some of the general trends and resultant costs.
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TARP For Trucking - Or Teamsters? YRC Zollars’ Asks Fair Question - BUT C’mon!
May 15, 2009
YRC to Apply for Bailout Funds | online.wsj.com
YRC Worldwide is following others in the heavily unionized sector to get on the Obamanomics TARP (Troubled Asset Relief Program) train where the probable payback for his election support is to bail out state pensions, automakers, the insurance industry, etc. - and now trucking? YRC President Bill Zollars’ has the guts to ask for help (why not), but is also says more about the bumpy road they are on. I cannot wax poetically like our colleague Mr. Schultz, but will give another penny worth of input herein (hopefully not Billions of them).
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