It was, for a variety of them, a demanding 12 months. For others, the 12 months that simply expired was disastrous.
The monetary drama that performed out this 12 months delivered difficulties to for-hire trucking firms of all sizes. A minimum of two main carriers succumbed to a number of years of declining profitability main to 1 being offered and the opposite submitting for chapter. Nevertheless it was not solely giant firms that suffered in 2023, many small ones — together with one-truck operations — referred to as it quits this 12 months.
However, 2023 was not all doom and gloom. There was some progress in efforts to handle the scarcity of truck parking, and the trade and the federal authorities are doing extra to acknowledge the position girls can play in assembly the demand for drivers. And, nobody aside from Time journal’s Particular person of the 12 months proven a constructive gentle on the position of truck drivers.
Listed below are 13 tales that formed the 12 months in trucking.
The Freight Recession
The freight scenario within the U.S. throughout 2023 was a daily witch’s brew, one which led to some important hand-wringing by carriers of virtually all sizes, and plenty of small operations closing up store.
The elements that led the trade and its varied analysts to proclaim the existence of a “freight recession” included:
- continued slack manufacturing orders
- excessive present retail inventories
- extra trucking capability
- shopper spending shifting from items to providers
- elevated prices for gasoline and labor
And, most of those have their roots within the COVID pandemic, throughout which the federal government pumped billions of {dollars} into the financial system to maintain shopper spending sturdy. Individuals used a lot of their authorities largesse to outfit dwelling workplaces, take up new hobbies, purchase work-from-home wardrobes, and residential furnishings.
All of these items needed to be delivered by vans, and that prompted many carriers so as to add gear and spend extra to rent and hold drivers.
Now, shoppers are spending on providers and experiences like returning to gyms that had been closed, eating out at eating places that had shuttered or supplied solely takeout service, and touring extra for holidays and holidays.
All of this added as much as extra capability chasing fewer shipments, i.e. a freight recession.
Most trade analysts recommend this example will hold on till the second half of 2024, whereas some extra pessimistic seers declare it should final for a lot of the new 12 months.
Yellow Corp.’s Closing and Chapter
The years of monetary struggles lastly caught as much as the 94-year-old Yellow Corp. this summer season.
It introduced it was ceasing operations on July 30 and filed for Chapter 11 chapter safety on Aug. 6, placing some 30,000 staff, together with 22,000 union drivers, out of labor. It confronted some $12.5 billion in debt, together with a pandemic-era federal load of $730 million.
In making the bulletins, Yellow’s Chief Govt Officer Darren Hawkins stated“It’s with profound disappointment that Yellow proclaims that it’s closing after almost 100 years in enterprise.” Hawkins then went on responsible the Worldwide Brotherhood of Teamsters, the drivers’ union, for the corporate’s demise.
He stated, “We confronted 9 months of union intransigence, bullying, and intentionally harmful ways. An organization has the best to handle its personal operations, however as we have now skilled, IBT management was capable of halt our marketing strategy, actually driving our firm out of enterprise, regardless of each effort to work with them.”
Nonetheless, the union blamed Yellow’s administration for the corporate’s failure.
The union’s Basic President Sean M. O’Brien stated, “At present’s information is unlucky however not shocking. Yellow has traditionally confirmed that it couldn’t handle itself regardless of billions of {dollars} in employee concessions and lots of of thousands and thousands in bailout funding from the federal authorities. This can be a unhappy day for employees and the American freight trade.”
Since then, a lot of Yellow’s former opponents have been buying its former terminals. Yellow’s rolling inventory — some 12,000 vans and 40,000 trailers — is to be offered by Ritchie Brothers and Nation’s Capital.
As a result of Yellow’s shutdown got here at a time when the freight market was delicate, its former clients had no hassle discovering different LTL carriers to make their deliveries.
Freight Fraud and Cargo Theft Soar
Simply earlier than the vacation season, CargoNet reported that since November 2022, it had recorded over 600 strategic cargo thefts in the US. That compares to only 58 such thefts in earlier years.
Most of these thefts occurred in California. Except for slight will increase on Fridays, thefts have been evenly distributed all through the workweek.
Throughout 2023, cargo thieves most well-liked shipments of vitality drinks, sodas, liquor, arduous seltzers, motor oils, tires, and photo voltaic panels. Close to 12 months’s finish, CargoNet stated it observed a wider vary of commodities being focused, together with shipments of footwear, clothes, magnificence merchandise, ATVs, and development gear.
Whereas many of those thefts occurred by way of pilferage or with the theft of total hundreds left unattended, cargo theft spiked throughout 2023 when cargo thieves used elaborate false identities to seem like brokers. As soon as that they had a load consigned by a shipper, they might assign it to a legit provider who may ship it to a bogus handle or take it to a facility the place it might then be taken by one other unsuspecting provider to a last fraudulent vacation spot.
Usually, the legit carriers would by no means be paid.
The cargo thieves would then promote the stolen items, in some cases by way of legitimate-looking companies.
Cargo theft specialists count on these actions to proceed at the same time as legislation enforcement companies in any respect ranges do extra to crack down on it.
Zero Emissions Necessities and Pushback
Chilling new clear air rules arrived in 2023, inflicting a lot of the trucking trade to shiver, after which begin retaliating.
Early within the 12 months, the federal Environmental Safety Company revealed new, stricter emissions requirements for heavy-duty vans. The EPA’s proposed truck emission requirements would require 1 / 4 of latest heavy vans offered within the U.S. to be all-electric by 2032.
This meant OEMs needed to speed up the event of applied sciences to provide cleaner vans starting with the 2027 mannequin 12 months. It additionally made trucking firms determine what which means for them.
Producers, trucking associations, and even federal elected officers pushed again in opposition to the EPA and strict new rules superior by the California Air Sources Board that geared toward requiring solely zero-emissions vans working within the state.
In February, 34 Republican senators, led by pro-trucking Sen. Deb Fischer (R-Nebraska) launched a decision to overturn the EPA’s new emissions requirements.
The push for cleaner heavy-duty vans is behind the push for battery-electric automobiles. Nonetheless, trucking trade skeptics query if such vans could have the vary for long-haul deliveries and if the nation’s electrical grid has the capability for all of the charging that shall be required.
Schenider is specializing in electrical vans in its Southern California operations. The Wisconsin-based provider has 50 Freightliner eCascadias and a big charging facility in South El Monte, California. The vans are making regional runs round Los Angeles and all through the Inland Empire. In November, Schneider introduced its eCascadias had hauled over 1 million miles of buyer freight.
Main Infrastructure Damages and Repairs
Infrastructure made headlines in 2023, together with the virtually miraculous repairs made to 2 main interstates that suffered catastrophic injury.
In early June, a tanker loaded with gasoline crashed whereas exiting Interstate 95 in Northeast Philadelphia. The ensuing fireplace claimed the lifetime of the motive force, 53-year-old Nathan Moody, and melted the metal supporting the interstate’s northbound lanes inflicting them to break down, and severely damaging the construction of the southbound lanes.
On the time of the crash, Pennsylvania transportation and authorities officers stated it might take months earlier than the interstate might be reopened. However, due to using an revolutionary recycled glass materials used to quickly fill the hole left be the destroyed interstate lanes, I-95 had site visitors flowing over it inside simply 12 days.
The Pennsylvania Division of Transportation opened new everlasting northbound lanes in mid-November, and new southbound lanes are anticipated to be prepared for site visitors early subsequent 12 months.
The same scenario occurred in early November when a suspected arson fireplace closely broken a 450-foot part of Interstate 10 in downtown Los Angeles.The Nov. 11 fireplace closed the stretch of freeway that carries 300,000 automobiles a day.
Inspectors for the California Division of Transportation stated the fireplace, which unfold over eight acres battled by 26 fireplace departments, needed to test the 100 bolstered concrete pillars that assist the elevated freeway.
First estimates by Gov. Gavin Newsom prompt the stretch of I-10 must be closed for so long as three weeks whereas repairs have been made. Ultimately, it took simply eight days of 24/7 work to reopen the I-10.
On Dec. 12, the Rhode Island Division of Transportation rapidly closed westbound lanes of Interstate 195 on the Washington Bridge when inspectors discovered what the division referred to as a “crucial failure” of some parts of the 55-year-old bridge.
RIDOT transformed two of the 4 eastbound lanes to hold westbound site visitors and started the repairs to the westbound lanes of the bridge that carries site visitors over the Seekonk River between Windfall and East Windfall. It is estimated the bridge carries as many as 96,000 automobiles a day.
It is anticipated for repairs to the bridge to take no less than three months.
Elevated Union Exercise
A six-week strike this previous fall by the United Auto Staff shut down operations at a number of crops owned by Ford, Basic Motors, and Stellantis, and ultimately led to a settlement that included a 25% improve in base wages.
The UAW additionally had negotiating success within the trucking trade as properly. A 39-day walkout by 3,900 union employees at three crops operated by Mack Vans led to a different wage improve. The brand new contract included a median 36% improve over 5 years and got here after staff rejected an earlier settlement that included only a 19% improve.
A significant strike was averted final summer season when 340,000 UPS employees authorized a contract negotiated by their Worldwide Brotherhood of Teamsters union. The contract included a $7.50 hourly wage improve over the lifetime of the contract, the creation of seven,500 new full-time jobs, and well being and security advantages together with air-con in supply vans.
“Our members simply ratified probably the most profitable settlement the Teamsters have ever negotiated at UPS,” stated Teamsters Basic President Sean M. O’Brien on the time of the settlement. “This contract will enhance the lives of lots of of 1000’s of employees, Teamsters have set a brand new normal and raised the bar for pay, advantages, and dealing situations within the package deal supply trade.”
Nonetheless, 22,000 Teamsters-member drivers misplaced their jobs when Yellow Corp. ceased operations in July and filed for chapter safety in early August.
Yellow’s administration blamed the union for standing in the way in which of efforts to chop prices and streamline operations. The union blamed Yellow’s demise on unhealthy administration.
Truck Parking Progress
The dearth of adequate protected and safe truck parking splashed throughout the headlines of main media retailers in July when a Greyhound bus loaded with passengers struck a number of tractor-trailers parked alongside the doorway of a relaxation space on Interstate 70 in Southern Illinois. Three passengers of the bus died within the crash, and 14 others have been injured. The crash targeted consideration on the shortage of adequate truck parking.
Officers in Washington made an effort this 12 months to assist resolve the parking disaster, which trade analysts say means there may be one truck parking spot for each 11 vans on the street. Federal funds have been supplied for truck parking initiatives in Florida, Louisiana, Texas, and Tennessee.
Payments with bi-partisan assist have been reintroduced within the Home and the Senate that would offer $755 million for truck parking. The laws was not handed however did garner elevated assist in each homes and is predicted to be taken up once more.
Indiana opened a refurbished relaxation space on Interstate 65 close to Kankakee that features 225 new truck parking spots. It’s a part of a plan so as to add 1,122 new truck parking areas alongside interstates. Wyoming added 200 truck parking spots on Interstate 80 at Quealy Dome at mile marker 290 and Fort Steele Relaxation Space at mile marker 228.
Additionally this 12 months the Trucker Path app launched a research displaying which elements of the nation with the least quantity of truck parking. It discovered that the East Coast of the nation, from Florida to Maine, was the area the place truckers have been least prone to discover parking after they wanted it.
Risk of Pace Limiters Did not Materialize … But
The trucking trade held its collective breath as the ultimate days of 2023 ticked off the calendar. It waited for the Federal Motor Service Security Administration to announce the utmost setting for proposed pace limiters, which by no means got here by the Dec. 29 deadline that had been set by the company.
Earlier within the 12 months, FMCSA made its newest try to enact a regulation mandating speed-limiting expertise be put in on all new vans. When it did, it listed 68 mph as the highest pace, solely to retract that and set Dec. 29 for the reveal.
Any prospect of pace limiters faces stiff opposition. When FMCSA superior the concept in 2022 15,000 feedback — most in opposition — have been obtained.
Members of the Home of Representatives grilled FMCSA Administrator Robin Hutcheson in December when she appeared at a Highways and Transit Subcommittee listening to. Except for questioning Hutcheson about pace limiters, most of the Home Members voiced their opposition to them.
FMCSA is predicted to take one other run at speed-limiting within the first couple of months of this 12 months, which means any new restrict — if there may be one — wouldn’t take have an effect on till 2025.
Additionally in December, the FMCSA issued an replace on its enforcement coverage concerning sexual harassment. The assertion from the company stated federal legislation requires anybody convicted of utilizing a industrial motorized vehicle to commit a felony should be disqualified from working a CMV. That might imply a driver convicted of such an offense might be prohibited from driving for a 12 months to life.
Throughout 2023, FMCSA additionally handled a number of different points together with California’s AB5 labor legislation that requires owner-operators to be handled as firm staff, automated driving techniques, digital identification for vans, and automatic emergency braking.
Most observers count on 2024 to be an lively regulatory 12 months.
Main Mergers and Acquisitions Occurred in 2023
Within the spring of the 12 months, one main trucking firm scooped up one other. Then, simply because the 12 months was about to finish, the identical factor occurred once more.
Regardless of the decline in demand and rising rates of interest, important mergers and acquisitions occurred all through 2023.
In March, Knight-Swift Transportation Holdings, Inc. introduced it was buying Chattanooga-based U.S. Xpress for $808 million. Then in late December, Montreal, Canada-based TFI Worldwide, Inc. was buying the big flatbed agency of Daseke, Inc. The value? A shocking $1.1 billion.
“The chance to enhance earnings, achieve clients, and attain extra skilled drivers, was very compelling to us,” stated Knight-Swift CEO Dave Jackson when the deal for U.S. Xpress was introduced. “We count on to use the identical playbook that proved profitable within the Knight-Swift merger as we share greatest practices, enhance operations, and work collectively to assist U.S. Xpress turn out to be the perfect that it may be.”
Included within the deal have been U.S. Xpress’ community of about 14 terminals and 30 drop yards, primarily positioned throughout the japanese U.S. U.S. Xpress’ fleet contains about 7,200 tractors and 14,400 trailers, together with tractors supplied by some 1,000 unbiased contractors. The corporate’s workforce contains about 7,900 drivers (together with unbiased contractors), 300 upkeep technicians, and a couple of,200 non-driver staff.
Daseke’s operations embrace about 4,900 tractors, 11,000 flatbed, and specialised trailers, and a million sq. ft of business warehousing area,. After the merger, Daseke will proceed to function its portfolio of manufacturers as a part of TFI’s Truckload section, in response to an announcement from TFI.
Corporations which can be a part of Daseke embrace Smokey Level Distributing, E.W. Wylie, Central Oregon Truck Firm, The Boyd Corporations, Lone Star Transportation, Bulldog Hiway Categorical, Hornaday Transportation, The Roadmaster Group, and TSH & Firm.
The acquisition of Daseke was solely one in all TFI’s acquisitions throughout 2023. In February, it acquired the Axsun Group for $90 million, after which in Could it introduced it had bought Siemens Transportation Group and Sizzling Line Freight Methods; the phrases of these offers weren’t disclosed. It acquired JHT Holdings in August, and Vedder Transportation Group in September.
Among the many different mergers and acquisitions within the trucking trade this 12 months:
- Hub Group acquired Ahead Air’s last mile operations
- CRST acquired BCB
- PS Logistics acquired Motion Devoted
- J.B. Hunt acquired the brokerage operation of BNSF
- FST Logistics acquired Hyway Trucking
- UPS acquired Pleased Returns
- Florida Rock and Tank acquired United Petroleum Transports
- Lazer Logistics acquired the yard recognizing operation of Hirschbach
And, the outlook for 2024? Extra of the identical.
bp Purchases Journey Facilities of America
In February, British vitality big bp introduced its intention to buy the Journey Facilities of America chain of truck stops.
The corporate provided $1.3 billion for the chain of 281 journey facilities unfold over 44 states.
Shortly thereafter, the U.S.-based ARKO provided $2.4 billion for TA. The corporate rejected the massive of ARKO, one of many largest comfort retailer chains within the U.S.
In Could, TA’s shareholders voted in favor of the sale to bp.
When the deal was first introduced, Dave Lawler, chairman and president of bp America stated, “Topic to approvals, we stay up for welcoming the TA crew to bp. TA’s superb nationwide community of on-highway places mixed with bp’s greater than 8,000 off-highway places have the potential to supply vacationers {and professional} drivers a seamless expertise for many years to return.”
Additionally in 2023, bp introduced it was going to spend $1 billion to put in electrical car charging stations throughout the U.S.
Truck Milestones
Peterbilt begins the manufacturing of a brand new mannequin this month, making a alternative for one in all its most iconic fashions.
Additionally in 2023, Kenworth celebrated its one centesimal anniversary with two particular version vans.
In Could, Peterbilt unveiled the Mannequin 589, which changed the 389, which made its debut in 2007. Throughout a reveal on the Texas Motor Speedway, Peterbilt officers stated the brand new truck could be accessible with both the PACCAR MX-13 or Cummins X15 engines. Each ship as much as 605 hp.
The 589 additionally has a protracted, low, all-aluminum hood assembled with Huck rivets, a wraparound grille crown with triple bars, 15-inch exterior air cleaners, bicycle fenders, pod headlights, and 7-inch exhaust stacks.
The primary 589 of the brand new vans to be constructed with have a numbered plaque affixed to the passenger’s facet sprint.
To have fun the corporate’s one centesimal anniversary, Kenworth unveiled particular restricted editions of its W900 and T680.
The W900 Restricted Version is on the market in three configurations: 86-inch Studio Sleeper, 72-inch Flat High and Prolonged Day Cab. Simply 900 W900 Restricted Version vans shall be constructed.
The Signature Version T680 is on the market with Kenworth’s 76-inch mid- and high-roof sleeper configurations. The particular T680’s exterior includes a black onyx grille and facet air consumption, and distinguished Kenworth 100 badges on the sleeper.
Ladies Drivers Advisory Board Meets
Fashioned in 2022, the FMCSA’s Ladies of Trucking Advisory Board met for the primary time in 2023.
Throughout the 12 months, the 15-member board took up the problems it was charged to handle, primarily advising the FMCSA on methods to greatest recruit, retain and advance girls within the trucking trade.
A six-member committee was created through the group’s August assembly to create the group’s last report, which was delivered in November. On the whole, it targeted on steps that might be taken to enhance the lives of ladies drivers already within the trade and entice extra to the occupation.
Amongst its suggestions have been:
- eradicating drivers who’re confirmed to have dedicated sexual harassment and assault
- making a score system of carriers primarily based on their dedication to anti-harassment requirements
- addressing issues of sexual harassment that might happen throughout over-the-road coaching, and included “trainers and trainees ought to by no means share the identical sleeping quarters”
- advocating for extra authorities grants for coaching and training for ladies pursuing a CDL, together with offsetting little one care, transportation, and dwelling bills
Taylor Swift Pays Truckers Bonuses
Even earlier than being romantically linked to Kansas Metropolis Chiefs tight finish Travis Kelce, Tylor Swift made headlines within the trucking trade.
The pop star’s monstrous Eras live performance tour was the leisure trade’s greatest success in 2023, grossing an estimated $1.04 billion. That made it the first-ever tour to interrupt the $1 billion mark.
Its mixed 60 stops have been a boon to the U.S. financial system, producing greater than $5 billion in shopper spending, which performed a component within the 34-year-old singer/songwriter being named Time journal’s Particular person of the 12 months for 2023.
Swift was fast to share the wealth, paying out some $55 million in bonuses to people concerned in staging the tour. She paid a $100,000 bonus to every truck driver concerned in transporting the tour from venue to venue.
Learn different tales about 2023:
Ballot finds this 12 months was nothing particular, identical for 2023
Quite a few drivers acknowledged for his or her achievements
Here is how high points sounded on Truckers Information Podcast
