Truck Tonnage Index Points to Moderate Growth - Source Trucking Today

Truck Tonnage Index Points to Moderate Growth

ARLINGTON, VA — ATA's Truck Tonnage Index rises 0.2 percent in March.

ARLINGTON, VA — The American Trucking Associations’ (ATA) advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index rose 0.2 percent in March, and rose 2.7 percent year-over-year — the smallest year-over-year increase since December 2009.
The not seasonally adjusted index was 9.1 percent above the previous month, ATA reported.
“March tonnage, and the first quarter overall, was reflective of an economy that is growing, but growing moderately,” ATA Chief Economist Bob Costello said. “The pace of freight definitely slowed from the torrid pace in late 2011.
“Most economic indicators still look good, which will continue to support tonnage going forward,” he continued. Costello repeated the message that industry shouldn't be expecting the rate of growth to mirror the last couple of years, when tonnage grew 5.8 percent in both 2010 and 2011. “Expect tonnage overall this year to be up at a more moderate rate, perhaps less than 3 percent, which is more in-line with normal growth.”




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Canadian Freight Index Sees Rate Drop, First Time Since 2011 - Source Trucking Today

Canadian Freight Index Sees Rate Drop, First Time Since 2011

TORONTO — While March marked first drop in over a year, costs are still up.

TORONTO — The cost of ground transportation for Canadian shippers dropped 1.7 percent in March from February, according to the Canadian General Freight Index (CGFI).
While it is the first decline since February 2011, costs are still up 8.1 percent year-over-year.
“The results in this month’s index were driven by a downward trend in the Domestic Truckload & Transborder LTL, while Domestic LTL saw a marginal increase, ” explained Doug Payne, president and COO, Nulogx.
The Base Rate Index — which excludes accessorial charges — decreased by 1.77 percent when compared to February 2012.
And Average Fuel Surcharges assessed by carriers have seen an increase from 20.42 percent of Base Rates in February 2012 to 21.9 percent in March 2012.

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Volvo Trucks Bringing LNG Engine, But Looking at Other Fuels -Source Trucking Today

 Volvo Trucks Bringing LNG Engine, But Looking at Other Fuels

(L to R): Ron Huibers and Olof Persson sit down to talk fuel.

MIAMI BEACH, FL. — Volvo Group President and CEO Olof Persson joined Ron Huibers, president of Volvo Trucks North American sales and marketing, in Miami on Friday to announce Volvo's plans to launch a 13-litre liquefied natural gas engine for North America in 2014.
It was one of handful of press conferences and announcements the company held this past weekend.
The LNG engine is just one part of Volvo's new "Blue Power" strategy, and is aimed to compliment their compressed natural gas (CNG)-powered Volvo VNM and VNL model daycabs. The Swedes are also testing another fuel: DME (dimethyl ether). That fuel, they say, has the potential to become an attractive option for North American fleets.
The Engine
Trace amounts of diesel will ignite the the natural gas in the new 13-liter engine, delivering a 30 percent fuel efficiency improvement over spark-ignition engines, Volvo said, adding that the engine will reduce greenhouse gas emissions by 20 percent compared with diesel products. Volvo is aiming the engine at long-haul applications and says that they can meet the above numbers without cutting into power, torque or fuel efficiency.
The I-Shift engine will be available for customers to spec, Volvo noted. And while the engine will be a certified Volvo engine, the company is working with Westport in its development.
"We're not putting all our eggs in one basket," Persson said during a roundtable discussion with trucking journalists. "We don't know where it will go," Persson stated bluntly on the topic of new fuel alternatives. Volvo still has some questions regarding CNG and LNG as viable long-term fuel options.
While Persson stressed that they want to bring the tech that Volvo customers are asking for — like the CNG and LNG engines — an immature infrastructure, as well as the fact that natural gas is not a renewable fuel has, among other things, given them pause in diving headfirst into CNG and LNG. "None of these fuels is a slam dunk," Huibers said.
The Other, Other Fuel: DME
It's why they are looking into DME as a long-term solution that, reportedly, can be derived from natural gas as well as coal, and, more importantly, biomass.
"Tests are very positive in Europe," Persson said. "We have vehicles running on it."
Volvo also said they like the DME option as the tanks are more akin to a propane tank, cheaper and lighter than CNG and LNG tanks. No DEF is needed, and possibly no SCR. DME, the company said, mirrors the the performance and energy efficiency of diesel while significantly cuts GHG emissions. And like diesel, it needs no separate ignition mechanism. While LNG requires cryogenic temperatures, DME needs a tank pressure of 75 psi versus CNG's 300 psi. Non-toxic, DME burns with a blue flame (hence "Blue Power"). But time, research and money will tell more.
Huibers, who made the trek down to Miami in a Volvo truck, stopping to talk to customers along the way, stressed the fact that at the end of the day, it came down to whether a solid business case could be made. "The customer will make the choice," he said.
Harmonization of regulations is something that Volvo would like to see, and they are currently talking with various associations and governments on the issue. Persson noted that there are many barriers to entry from a policy point of view.
"We must be prepared for everything," Persson said in regards to new fuels. And while it may be more expensive to follow three separate fuel rabbits down three different holes, "The money we spend gives us increased knowledge and experience," he said.




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Navistar Will Add Urea-Based Aftertreatment to Meet Emissions Regulations - Source Trucking Info

Navistar Will Add Urea-Based Aftertreatment to Meet Emissions Regulations

UPDATED -- Navistar International announced this morning that it will add urea-based aftertreatment to its engines with In-Cylinder Technology Plus (ICT+) to meet 2010 Environmental Protection Agency emissions regulations and position the company to meet greenhouse gas rules in advance of 2014 and 2017 requirements.

To be used for diesels in the United States and Canada, ICT+ combines the company's current Advanced Exhaust-Gas Recirculation with liquid urea (diesel exhaust fluid) injection aftreatment similar to that used by competitors. ICT+ will be initially introduced on Navistar's MaxxForce 13 engine in early 2013, with the MaxxForce 15 to follow, said Daniel Ustian, Navistar's chairman, president and CEO.

A midrange engine for Brazil will also use ICT+, and is being introduced now, Ustian said. He and two other executives spoke briefly in a webcast two hours after the announcement this morning.

They said current products will continue for the rest of the year using a combination of previously earned emissions credits and non-conformance penalties for trucks sold in some states. They took no questions about how each of Navistar's midrange and heavy duty engine families will be affected or anything else regarding ICT+.

Navistar originally tried to meet 2010 emissions standards without the use of urea-based aftertreatment, which the rest of the industry has used through selective catalytic reduction to meet the regulations. However, it has struggled to get to the 0.2 NOx level using only its in-cylnder, advanced exhaust gas recirculation solution.

Navistar has fielded 2010-certified diesels that don't quite meet the regulation's absolute limit for NOx, but had thus far been able to meet the regs with the use of emissions credits. Early this year, the agency said it would allow continued sales of heavy-duty engines by means of the company paying non-conformance penalties of about $1,900 per engine. But a federal judge recently threw out that arrangement in a suit brought by competitors, and Navistar has had trouble trying to certify a 13-liter engine that meets the absolute NOx limit of 0.2 gram, compared to 0.5 gram it's producing now.

"Our distinctive solution will leverage the investment and advancement we've made in clean engine technology while providing immediate certainty for our customers, dealers, employees and investors," Ustian said. "We have made tremendous progress with in-cylinder technology and with the introduction of ICT+ our goal is to offer the world's cleanest and most fuel efficient diesel engine, benefiting both our customers and the environment for years to come."

The solution will include "an already proven and certified aftertreatment system," allowing the company to offer production-ready vehicles early next year. The company also says this approach is expected to provide a clear path to quickly achieving 2017 GHG standards.

The company intends to continue to build and ship current model EPA-compliant trucks in all vehicle classes using appropriate combinations of earned emissions credits and/or non-compliance penalties (NCPs) during the transition to ICT+.

"We've shared our new technology path with the EPA and California Air Resources Board (CARB), and both agencies are encouraged by our plans," Ustian said. "We will continue to work with the agencies to ensure that our customers receive uninterrupted deliveries in all 50 states during this transition."

We will provide more details as they become available.




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President Signs Highway Bill - Source Trucking Info

 President Signs Highway Bill
By Truckinginfo Staff

President Obama signed the long-awaited highway bill into law at the White House this afternoon. The bill, Moving Ahead for Progress in the 21st Century, or MAP-21, funds transportation programs through September 2014.

The bill holds transportation spending at current levels, authorizing $101.3 billion for highways and transit over the next 27 months.

"This measure includes historic reforms - cutting red tape and consolidating or eliminating nearly 70 federal programs," said Transportation and Infrastructure Committee Chairman John Mica, R-Fla., in a statement.

"This bill will provide a major boost to our economy by putting Americans back to work building our nation's bridges and highways," he said.

"It has been a very long and winding road to get to this place," said Sen. Barbara Boxer, D-Calif., chairman of the Environment and Public Works Committee. "This sends a message to the people of America, and that is that we can work together."

The agreement lays the groundwork for the first national freight policy. It includes a number of trucking provisions, including mandator electronic onboard recorders to track driver logs, a study of the 34-hour restart provision, a study of size and weight limits. It gives FMCSA legal authority for a range of initiatives, many of which already are under way.

Although an agreement was reached and the legislation passed last week, Obama had to sign a one-week measure last Friday to extend the two programs until the new legislation reached his desk. The previous transportation funding extension expired on June 30.

Reactions

American Trucking Associations President and CEO Bill Graves noted in a statement that "it has been 30 months since we have had a true, long-term highway funding bill, so today's bill signing is a good thing for trucking and for our national economy."

"It is not perfect, but this law advances the cause of highway safety and, I believe, will ultimately be seen as a springboard to even more robust transportation funding in the future," Graves said. He did say he was disappointed that it fails to deliver adequate funding to improve our nation's infrastructure network.

"If America is to maintain its place as the world's preeminent economy, then we must do more to maintain and improve our nation's system of roads and bridges to ensure that goods can move freely and efficiently from factories to ports and from farms to markets," Graves said. "While this bill takes steps in that direction, much more must be done in the future."

The Commercial Vehicle Safety Alliance emphasized that it provides a steady level of funding for state safety and enforcement programs and advanced key safety initiatives supported by the group, such as stronger requirements to help address the chameleon carrier threat, an industry-wide requirement that CMVs be equipped with electronic logging devices for HOS compliance, and tighter CDL and driver training requirements.

For more details on the bill, see 6/29/2012 Agreement Sets New Course for Highway Program







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A Quick Guide to Alternative Fuels - Source HDT

 A Quick Guide to Alternative Fuels
By Deborah Lockridge, Editor in Chief

The world no longer seems concerned about "peak oil" (the idea that oil reserves are going to run out), and today's clean-diesel engines have addressed many environmental concerns about truck exhaust. Most industry experts believe conventional diesel fuel will remain the dominant fuel for commercial vehicles for decades to come.

There is, nevertheless, growing interest in alternative fuels for a number of reasons:

1. Although new technology has made it possible to get to previously untapped oil reserves, it's also harder to get to that oil. That, along with growing global demand, means oil will continue to be expensive.

2. There is still concern about U.S. dependency on foreign oil.

3. Alternative fuels can make sense for some trucking operations and for some shippers as a way to address concerns about price volatility, the environment and a "green" image.

Natural gas has grabbed most of the headlines lately, thanks to the domestic boom in production and corresponding low prices, and we'll look at it in depth in our August issue.

In addition to the alternative fuels summarized on these two pages, there are a couple of alternatives not quite ready for prime time:

- Dimethyl ether (DME): A colorless gas transformed into liquid under low pressure, made from biomass or natural gas, sometimes called synthetic LPG (propane). It's biodegradable, noncorrosive, produces no soot and can run in a diesel engine with only minor modifications. Efficiency is as high as ordinary diesel. Volvo has had trucks running on DME in Sweden since 2010 and is looking into the fuel for North America.

- Hydrogen/fuel cells: A fuel cell converts hydrogen and oxygen into water, in the process producing electricity. Ingredients are abundant; oxygen is in the atmosphere, but hydrogen must first be extracted from other compounds, such as water or natural gas (at special installations) or diesel fuel (in the cell). A fuel cell is low maintenance and emits nothing but water vapor.

The technology is expensive and still far away in mainstream terms. Critics say it costs more to produce hydrogen than is earned by using hydrogen in fuel cells. Daimler, however, believes it's the fuel of the future, and Vision Motor Corp. of El Segundo, Calif., is offering its Tyrano fuel-cell model for drayage use.

Natural gas

What: Actually a mixture of gases formed from the fossil remains of ancient plants and animals buried deep in the earth. Main ingredient is methane. Stored and handled as compressed (CNG), OK for local and regional operations, or cryogenically liquefied (LNG), better suited for long-haul operations because it's denser.

Pros: Vast U.S. resources, current low fuel prices, simple aftertreatment. Even without government incentives, many fleets find solid ROI.

Cons: Production by "fracking" is controversial because of environmental concerns. Range is an issue, but fueling infrastructure is growing. Bulky, heavy onboard tanks. Stiff up-front costs for vehicle equipment and fueling stations. As demand climbs and drillers cut back on production, gas prices could rise.

On the ground: Infrastructure is expanding; Freightliner Trucks and Westport Innovations ran cross-country trips in CNG-powered trucks last month to prove the availability of the fuel on the road. Cummins builds 8.9-liter and (soon) 11.9-liter spark-ignited engines, which some truck makers offer with CNG equipment, and is working on a 15-liter that can run CNG or LNG. Some truck makers also offer Westport's dual-fuel (gas and diesel) 15-liter engine with LNG equipment. Volvo and Mack will have a dual-fuel LNG 13-liter engine in 2014. Ford, General Motors and Ram will offer bi-fuel setups (CNG and gasoline are burned separately) in certain pickups by fall.

Biomethane

What: Chemically identical to conventional natural gas but produced locally from organic waste such as animal manure or sewage.

Pros: Low greenhouse gas emissions. Renewable resource that makes use of what otherwise would be waste.

Cons: High capital cost for facilities to refine biogas to quality needed to run in engines. Potential water pollution concerns.

On the ground: Waste Management runs a number of trucks on liquefied biomethane from decomposing waste at landfills. Dairies are turning cow manure into biomethane to run their trucks.

Propane

What: Tri-carbon alkane that's a gas at atmospheric pressure but liquefies under low pressure. Produced from natural gas processing and crude oil refining. Nontoxic, colorless, virtually odorless. Also called LPG (liquefied petroleum gas).

Pros: Currently inexpensive like natural gas but contains more energy. Filling facilities are less expensive. Fewer emissions than gasoline. Suitable for lighter-duty vehicles. Popular as a vehicle fuel overseas, where it's called "autogas."

Cons: Up-front cost for conversion. Better-known in the U.S. for barbeques and rural heating than for vehicle power.

On the ground: Several companies (Roush CleanTech and CleanFuel USA among them) offer propane conversion packages for Ford, GM and Ram trucks and some buses.

Biodiesel

What: Made from plant or animal fats such as soy, canola, even used fryer oil. Usually blended 5% or 20% with conventional diesel (B5 and B20, respectively).

Pros: Renewable fuel, domestically available.

Cons: Prices slightly higher, lower fuel mileage than diesel. Quality concerns; may cause problems in extremely cold weather. Concern about competing for food sources.

On the ground: The next generation of biofuels may be made from algae.

All-electric

What: Runs on batteries charged by plugging in to the electrical grid.

Pros: Lower cost per mile, less maintenance, quiet ride, no emissions.

Cons: Higher up-front costs, range anxiety, infrastructure/power grid concerns, battery costs.

On the ground: Companies running battery-electric delivery trucks include FedEx and Frito-Lay.

Diesel-electric hybrid

What: An electric motor provides additional power to launch the vehicle and improves fuel economy in stop-and-go operations.

Pros: Doesn't require separate fueling infrastructure, greatly improves fuel mileage. Optional electronic PTO can mean even more savings for high-idling applications such as utility fleets.

Cons: Use currently is largely limited to operations with lots of stop-and-go operations, such as refuse trucks or package delivery. Higher up-front costs than diesel.

On the ground: Most medium-duty truck makers offer Eaton's hybrid system, and BAE Systems now has one for heavy- and medium-duty trucks.

Hydraulic hybrid

What: Uses pressurized fluid, instead of electric power, as an additional or alternative power source along with an engine. Recovers the vehicle's kinetic energy during braking and decelerating, aka regenerative braking.

Pros: Better fuel economy, decreased brake wear.

Cons: Only makes sense for stop-and-go operations such as refuse trucks and city buses; weight concerns.

On the ground: 
Available as retrofit or as a factory option from some OEs using Eaton or Parker Hannifin systems.

From the June 2012 issue of HDT






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Trucking Adds 2,000 Jobs in June - Source Trucking Info

 Trucking Adds 2,000 Jobs in June

Trucking added 2,000 for-hire jobs in June after adding 7,300 jobs in May. June numbers are up 3.1% from one year ago, according to data from the U.S. Bureau of Labor Statistics.

Nonfarm payroll employment for the country continued to edge up in June (+80,000), but the
unemployment rate was unchanged at 8.2%.

In June, average hourly earnings for all employees on private nonfarm payrolls increased by 6 cents to $23.50. Over the year, average hourly earnings have increased by 2%. In June, average hourly earnings of private-sector production and nonsupervisory employees increased by 5 cents to $19.74.




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June Trucks Sales Weak - Source Trucking Today

 June Trucks Sales Weak

NASHVILLE, IN. — Class 8 truck orders for all major North American OEMs in June — at 16,195 units — is the lowest month for orders since September 2010.
That's the latest from FTR Associates.
June orders were 8 percent lower than May, dropping to 23 percent lower than the same month last year. 2012 orders for Class 8 trucks continue to disappoint with annualized rates coming in well below 2011 levels month after month. For the three-month period including June orders annualize to 202,700 units.

Jonathan Starks, FTR’s Director of Transportation Analysis, commented that, “truckers are operating in a modestly positive environment, but not strong enough to elicit higher demand for expensive new vehicles. Growth in freight volumes and rates slowed noticeably during late 2011 and into 2012. Despite expectations that both will improve as we finish 2012, equipment markets will have to contend with the effects of last year’s slowdown. Additionally, truck manufacturers continue to build at rates well above incoming orders. This will eventually lead to a significant reduction in new truck output.”





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