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2 March
Trucking stakeholders step up to aid Ukraine

As the Russian military cut a path across the Ukraine late last week, GP Transco Vice President of Business Development Sergey Bort and CEO Dominic Zastarskis leapt into action – at least as much action as you can leap into from 5,000 miles away.

Contacting trucking and logistics industry stakeholders, the Joliet, Illinois-based duo launched a fundraising campaign that quickly swelled into the six-figure range in a matter of a few days. Bort said the company so far has raised $350,000, all of which will go toward Ukrainian humanitarian aid.

“The people of Ukraine are currently in dire need of assistance, and we want to do everything in our power to bring humanitarian aid to them. We started by reaching out to the trucking companies near us in Illinois; with 15 companies currently on board, we are in talks with two dozen other companies in our industry,” Zastarskis said. “The people of Ukraine need our help. We don’t have ties to Ukraine nor an office there. It just seems like the right thing to do.”

With donations from $10,000 to $50,000 each, GP Transco, MoLo Logistics, RJW Logistics Group, AITIM Consulting, Unlimited Carriers, Arka Express, Brite Logistics, GTS Transportation, KGZ Transport, Highboost Corporation, HMD Trucking Inc., Cadence Premier Logistics, MB Global Logistics, Artur Express, NFI, Fleet Advantage, CarriersEdge, Pilot Flying J and Bond Transit are among the companies that now compile a group dubbed “Trucking & Logistics Professionals for Ukraine.”

The Russian invasion of Ukraine does have trucking implications beyond supply chain disruption and the potential to influence rising prices of diesel fuel. Landstar, while based in Jacksonville, Florida, has significant exposure in eastern Ukraine. Two agencies operated from there generated approximately $860 million – 13% – of the company’s consolidated revenue last fiscal year.

Zastarskis, a native of Lithuania, and GP Transco (CCJ Top 250, No. 163) are working with the Lithuanian government on distribution of the funds to avoid the money becoming military aid, as their goal is that it reach the people affected by the ongoing war.

“This is all humanitarian assistance,” Bort said, “So, basically helping with supplies, with medical supplies, with food and things like that.”

Seized and annexed by Russia during World War II, Lithuania has its own dubious history with Moscow. The country gained its independence in 1991 with the fall of Soviet Union and joined NATO in 2004, strategically aligning itself with the U.S. and its Western allies.

“Giving to Ukraine directly, it’s kind of a tricky thing right now because they’re having a hard time buying things within Ukraine that they need,” Bort said. “The more doable thing is finding a neighboring country that is helping Ukraine, and things are purchased from the outside – from Poland, from Lithuania – and brought across the border of Poland for people to use for medicine and stuff like that. It’s a lot more efficient because in Ukraine, most of everything is closed.”

 

Original article posted on CCJ Digital here.

2 March
How Freight Volumes Get Suppressed Despite Strong Demand

WCarriers have struggled to fully capitalize on high demand because of factors suppressing volumes, American Trucking Associations Chief Economist Bob Costello said March 1.

Costello prefers to look at household consumption, construction activity and industrial production to gauge how the industry is faring. All of these areas have been strong, but supply chain issues and a lack of trucking capacity have been driving down loads.
“Demand is there,” Costello said during a webinar to discuss the state of the economy and trucking. “No doubt about it, because the underlying drivers of growth are there. But we have got a supply chain problem, and that’s really our biggest constraint in the industry at the moment.”

Constricted Supply Is Contributing Factor, ATA’s Costello Says

Costello noted that in the past six months the industry has recouped about half of what it lost from early 2020 through midyear 2021, yet is still off about 5% from before the pandemic. In 2020, contracted freight was down 1.2% from the prior year. It also was down 3.2% last year, though there were improvements in the fourth quarter.

“The three buckets of freight are good,” Costello said. “What’s going on? Well, shippers are coming to their contract carriers to ask them to haul more loads. They don’t have the trucks, they don’t have the drivers. And so those shippers are being forced to put that freight into the spot market.”

Costello added that the spot market has been surging because there is a lot of freight there simply trying to get covered. He noted that in January it was up almost a 100% year-over-year. He also indicated this shows demand is not the issue,

“Demand is strong,” Costello said. “I just went through all the drivers of demand for our industry. It’s a supply problem, and that’s really what we have. Now as demand is strong and supply is constricted, what happens to price? It goes up.”

Original article posted on Transport Topics here.

14 June
Dayton Freight to acquire cartage unit from Valley

Headquartered in Hudson, Wisconsin, transportation and logistics provider Valley Companies is only selling its cartage assets to Ohio-based Dayton Freight. The deal includes terminals, trucks, related equipment and workers. Valley’s logistics and warehousing segments are not part of the transaction and will continue to operate as is.

Terms of the transaction were not disclosed. The deal is expected to close March 11.

“We are very thankful for our long-standing partnership with Valley Companies,” stated Anthony Rocco, Dayton Freight’s COO, in a press release. “Our growth throughout Minnesota will position us closer to our customers and help us provide our excellent service to more areas throughout the Midwest.”

The addition of Valley’s cartage division will aid Dayton Freight’s goal to provide direct coverage to all of Minnesota. Dayton Freight remains focused on incremental expansion in Minnesota and parts of the Dakotas.

The two companies have been working together in the region for more than 20 years.

Deal builds out direct coverage in Minnesota

“This is a big picture decision for Valley Companies, and it wasn’t an easy one, seeing as we’ve been in the cartage business for nearly 90 years,” said Todd Gilbert, Valley’s president and CEO. “Our customers’ needs have shifted, so we need to shift with them.”

Valley’s current focus is centered on growing TL and LTL coverage nationally as well as its final-mile and warehousing services.

“Valley Companies isn’t going away. We’re simply shifting gears,” Gilbert added. “From the Gilbert family, we want to say thank you to all of our Valley Cartage team members and customers for everything they’ve done since day one.”

Dayton Freight’s LTL network includes more than 65 terminals and 5,500 employees covering 15 states in and around the Midwest. The carrier offers one- and two-day service throughout the region with a fleet of nearly 2,000 trucks.

Original article posted on Freight Waves here.

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