GLG News by Intermodal Logistics Experts

Jay ThompsonPresident and General ManagerTransportation Business Associates

New Truck Sales Will Remain Slow With Used Doing Better - Here’s Some Why's

October 4, 2010

2010 is quickly passing with new truck sales falling short of most folks earlier predictions, but better than conservative estimates (like from us). Demand is being met by a strengthened used truck marketplace. There are several reasons including: freight demand, current fleet financials / utilization, regulations, higher new vehicle costs, tougher financing terms, available used trucks, newer truck engine product concerns, maintenance costs, truck drivers still available and other reasons.

Jay ThompsonPresident and General ManagerTransportation Business Associates

SWA v. Majors’ Bags, Booze, Blankets, Braking & Bad Cheese / Attitude Issues

October 3, 2010

Analysis of:Southwest Airlines to buy AirTran for $1.4B | www.forbes.com

Success in a service business is largely about “service.” The Southwest Airlines purchase of AirTran brings all of the competitive fare / operational insight / supplier issues as noted by our colleagues Ernie and Addison, but less-frequent fliers will get something seemingly missing at the mega carriers - a good in-flight experience in coach! A recent American Airlines weekend trip reminds me of why a growing SWA / WN will be good for the traveling public.

John SchulzIndependent Analyst - Contributing EditorLogistics Management Magazine

Biggest Myth in Trucking -- The General Rate Increase Means Something

September 30, 2010

Analysis of:FedEx Freight to Raise LTL Rates 6.9 Percent | www.joc.com

FedEx Freight and ABF Freight System are first out of the box with announcements of their general rate increases for 2001--6.9 percent for FEF and 5.9 percent for ABF. Troubled LTL giant YRC Worldwide says it is raising rates by 5.9 percent as well. But hardly any large shipper will be affected by these rate increases, which apply only to non-contract rates and often are discounted away in negotiations with truckers' large national accounts.

John SchulzIndependent Analyst - Contributing EditorLogistics Management Magazine

End of an Era for YRC Worldwide--Zollars Leaving as Chairman, CEO

September 29, 2010

Analysis of:Zollars to Retire from YRC Worldwide Following Completion of Comprehensive Recovery Plan -- OVERLAND PARK, Kan., Sept. 28 /PRNewswire-FirstCall/ -- | www.prnewswire.com

Financially ailing trucking giant YRC Worldwide, which has lost more money than any trucking company in U.S. history, is getting a change at the top. Chairman and CEO William D. "Bill" Zollars says he is leaving the company after 13 tumultuous years at the helm. His contract was due to expire at the end of this year. The company says it would seek a successor from both internal and external candidates.

Jay ThompsonPresident and General ManagerTransportation Business Associates

In Addition To Diesel Engine SCR v. EGR Debate - There Are Still DPF Issues

September 23, 2010

While engine buyers are starting to see Navistars’ Advanced Exhaust Gas Recirculation (EGR) versus all others’ with Selective Catalyst Reduction (SCR) technologies, a “Hotter” issue in the field is the Diesel Particulate Filter (DPF) problems, life and costs. With higher EGR rates with advanced EGR, does that mean higher DPF stress and costs? Probably!

Toby KolstadPresidentRail Theory Forecasts

Reliable freight and High Speed Passenger Service can’t coexist!

September 21, 2010

Analysis of:High-Speed Rail Stalls | online.wsj.com

The railroads are caught in a bind. While seeking government handouts in Public-Private Partnerships and battling congressional reregulation legislation, they have been trying not to offend too many politicians by fighting the expansion of passenger service over their primarily freight network.  It’s now crunch time and there are very few areas where the railroads can compromise: adding high speed passenger service would make track maintenance too expensive and freight service too unreliable.

Jay ThompsonPresident and General ManagerTransportation Business Associates

Pilot-FlyingJ Making Money - But Costing Truckers More?

September 20, 2010

Analysis of:Pilot, Flying J merger appears to be home run, but some are crying foul | www.thetrucker.com

The merging of Flying J into Pilot Travel Centers LLC looks like a winner for Pilot, but with some concerns yet to be addressed. The referenced article by Jack Humphreville of TheTrucker publication lays out the pros for them, but also rightly notes the issues that truckers are seeing - plus concern by competitors and others. We offer the following from our trucking side of things.

James AliucciCEOThe Global Group

Seafood, Overfishing And The Governments That Support It.

September 16, 2010

Analysis of:World pays high price for overfishing, studies say | uk.reuters.com

An interesting look at a different view on overfishing and the continued need for sustainability. The article opens up a potential discussion that focuses on the need for governments' subsidies to be curbed in order to help curtail overfishing. A point of view, backed up by monetary facts, that should help drive industry leaders into the ever growing sustainable dialog.

Jay ThompsonPresident and General ManagerTransportation Business Associates

Half Of Truckers Report Problems With Newer Engines - It’s Only Part Of Story

September 13, 2010

Analysis of:J.D. Power and Associates Reports: More than One-Half of Heavy-Duty Truck Owners Report Engine Problems in 2010, A Considerable Increase from 2002 | businesscenter.jdpower.com

J.D. Power and Associates has done a U.S. Heavy-Duty Truck Engine / Transmission Study survey for 14 consecutive years. It looks like problems are coming in much worse (double) as compared to before the EPA2004 & EPA2007 emissions rules were implemented. They result in costs that are seen in warranty claims, operators’ costs and sentiment. While these numbers are about pre-2010 engines, we are expecting higher problem numbers yet for 2010 - but at least with better fuel economy.

Toby KolstadPresidentRail Theory Forecasts

Rail traffic is up, but it’s no barn burner

September 8, 2010

Analysis of:Norfolk Southern, CSX Say Volumes Rise as Rail Demand Holds Up | www.bloomberg.com

Rail traffic is one of the best current measures of economic activity in the country, and the weekly carload reports from the AAR are one of the timeliest indicators available. Through the 34th week of the year, the numbers read as follows: total carload traffic is up 7.1% over the same period in 2009, and intermodal traffic is up 14.3%. Compared to the second quarter of this year, carload traffic in the third quarter is down 1% and intermodal loads are up 4.8% 

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