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Old Dominion commemorating 6 service center upgrades in early 2019

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Old Dominion Freight Line plans to increase service center count and capacity throughout the year. (Courtesy: OLD DOMINION FREIGHT LINE)

THOMASVILLE, N.C. — Dominion Freight Line continues to celebrate growing capacity with six service center open houses in the first half of 2019.

Responding to business growth and client demand, one of the nation’s largest LTL carriers will celebrate the openings of new, relocated or remodeled facilities in Mobile, Alabama; Pompano Beach, Florida; Houston; Otay Mesa, California, Texarkana, Arkansas, and Anaheim, California.

“Our 2018 results confirm that strategically opening new and renovating existing service centers to accommodate customer demand is helping to grow our business,” said Terry Hutchins, vice president of real estate. “We will continue that strategy of searching for new sites to increase capacity and grow our network to continue to deliver premium service that exceeds customers’ expectations.”

Strategically placed and built with best-in-class technology, Hutchins said Old Dominion’s service centers reduce shipping time, increase daily volume and enhance delivery flexibility. Old Dominion’s real estate team strategically selects locations to anticipate future growth and heightened customer demand, he said.

“We search for locations in growing markets where we have access to quality workers to expand our network capacity. Expanding our network allows us to immediately accommodate customer needs and is critical to maintaining our award-winning low claims ratio and guaranteed on-time delivery,” Hutchins said.

The LTL carrier plans to increase service center count and capacity throughout the year. Early 2019 service center open houses include:

  • Mobile, Alabama. One of five service centers in the state, the Mobile facility is a 44-door service center recently built to service cities across Alabama and Mississippi. OD will celebrate Mobile’s new service center on March 13.
  • Pompano Beach, Florida. To service the growing market in Florida, Old Dominion renovated the Pompano Beach service center. The 42-door facility spans 4.9 acres and will continue offering service to Sunrise, Deerfield Beach, Pompano Beach, Oakland Park, Margate, Coral Springs, Davie, Tamarac, Plantation, Wilton Manors, Coconut Creek, Parkland, North Lauderdale, Fort Lauderdale and Lighthouse Point, Fla. Pompano Beach’s open house celebration is scheduled for March. 20.
  • Houston. Texas has steady growth in its customer base and Old Dominion is continuously adapting with upgraded facilities across the state, Hutchins said. The remodeled Houston service center has 104 doors, spanning 24-acres of land, servicing Houston, Humble, Porter, Crosby, Spring, Woodlands, Cypress, Tomball, Conroe, Brenham, Sheldon, Channelview, Baytown, LaPorte and Pasadena, Texas. This service center is one of 20 across the state. The open house celebration is scheduled for April 11.
  • Otay Mesa (San Diego), California. Servicing customers in Otay Mesa, San Diego, San Ysidro, Eastlake, Chula Vista, Imperial Beach and into Mexico, this completely renovated and expanded 28-door facility is located in a new market for the company, along the border of Mexico. The new Otay Mesa service center will deliver shipments throughout Southern California and across the border to Old Dominion’s customers in Mexico. This facility is the company’s second service center in San Diego. Otay Mesa will host its open house on April 24.
  • Texarkana, Arkansas. Located along state borders, the 36-door service center broadens opportunity to cities across Arkansas, Texas and Oklahoma. This new service center allows for future growth, including additional doors and employees as customer needs increase. The facility is also unique in that its location offers on-site fueling stations. Texarkana’s open house celebration is scheduled for April 25.
  • Anaheim, California. After officially opening its doors in 2018, the 40-door service center recently hired three new employees to accommodate rapid growth. The 38-employee service center delivers across 11 cities in California. Its open house celebration is scheduled for Apr. 25.

In addition to the open houses, Old Dominion’s existing facilities continue to expand in response to growing customer demand. The Hagerstown, Maryland, service center was remodeled with 84-doors in October 2018, hiring 31 new employees to accommodate the growth. This service center will help manage deliveries to Hagerstown, Williamsport, Frederick, Rockville, Gaithersburg, Westminster, Hampstead and Monrovia, Maryland, and Greencastle, Waynesboro and Chambersburg, Pennsylvania.

For more information about Old Dominion, visit www.odfl.com or call 800-432-6335. On Twitter: @ODFL_Inc and Facebook: Old Dominion Freight Line Inc.

 

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DAT: Spot rates weaken as weather clouds a sunny forecast

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This chart shows that both van and reefer rates were down based on a seven-day average compiled on March 16. (Courtesy: DAT)

PORTLAND, Ore. — Just when spot truckload rates and demand seemed ready for an upward swing, they took another hit last week.

With weather disruptions on vital truck routes in the Midwest and Rockies, van and refrigerated load-to-truck ratios slipped during the week ending March 16, said DAT Solutions, which operates the DAT network of load boards:

  • Van: 1.6 loads per truck
  • Reefer: 2.9 loads per truck
  • Flatbed: 22 loads per truck

The DAT load-to-truck ratio measures the number of loads moved on the spot market relative to the number of available trucks. Newsal average rates declined as well compared to the previous week:

  • Van: $1.86/mile, down 2 cents
  • Reefer: $2.19/mile, down 2 cents
  • Flatbed: $2.34/mile, unchanged

Van trends

Spot van volumes remain ahead of March 2018 levels but so far this month demand for trucks is no better than it was in February 2019. Capacity is abundant and spot van rates are drifting: On DAT’s top 100 van lanes last week, pricing fell on 53 and rose on 36. Eleven lanes were neutral.

Where Rates Were Up: With freight markets in the Midwest struggling with unusual weather, there was a ripple effect for supply chains. For instance, the challenge of getting freight into Denver last week led to an 18-cent increase in the average rate from Seattle to Salt Lake City ($1.90/mile). On the other hand, the extra West Coast trucks in Salt Lake City caused rates on the lane from there to Stockton, California, to decline.

What to Watch: Expect a boost in flatbed pricing as the demand to move heavy machinery and construction materials into the region picks up. High demand for flatbeds in the coming weeks may cause van availability to tighten on some lanes.

Reefer trends

The national average spot reefer rate has declined in seven of the last eight weeks. On the top 72 reefer lanes, 26 lanes moved up while 43 lanes fell and three were neutral. We’re waiting on California and Florida produce to pull rates higher.

Where Rates Were Up: Sacramento, California, to Salt Lake City jumped 40 cents to $2.35/mile, possibly due to trouble getting into Denver. In the Midwest, two lanes from Grand Rapids, Michigan, rebounded from last week:

  • Grand Rapids to Madison, Wisconsin, increased 22 cents to $2.58/mile
  • Grand Rapids to Atlanta added 21 cents to $2.71/mile

Where Rates Fell: Many of the prior week’s gainers came back to earth, including Elizabeth, New Jersey, to Boston (down 38 cents to $3.81/mile) and Philadelphia to Miami (off 22 cents to $1.96/mile).

DAT Trendlines are generated using DAT RateView, which provides real-time reports on spot market and contract rates, as well as historical rate and capacity trends. The RateView database is comprised of more than $60 billion in freight payments.

DAT load boards average 1.2 million load posts searched per business day.

For the latest spot market load availability and rate information, visit and follow @LoadBoards on Twitter.

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ACT: Current Class 8 story is big backlogs, slowing orders

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ACT says heavy commercial vehicle markets continue to benefit from key triggers and new technologies, (Courtesy: VOLVO TRUCKS)

COLUMBUS, Ind. — In the release of its Commercial Vehicle Dealer Digest, ACT Research said that recently softer Class 8 orders are attributed to backlogs that are still out about 10 months.

Many of the orders normally booked in the year’s first quarter were actually placed in the rush to get into the queue in the second half of 2018.

The report provides monthly analysis on transportation trends, equipment markets, and the economy.

“The rolling-over of ACT’s dashboard guidance suggests today’s order weakness will transition from ‘too much backlog’ to an equipment supply-freight demand imbalance in the near future,” said Kenny Vieth, ACT’s president and senior analyst. “That said, heavy commercial vehicle markets continue to benefit from key triggers, including still-strong freight rates (being marked-down from record levels) and new technologies, like better fuel efficiency and safety technologies, as well as increased demand generated in the trailer segment for drop-and-hook to keep drivers moving.”

ACT Research is a publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasting services for the North American and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies.

More information can be found at .

 

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ATA truck tonnage index down 0.2 percent in February

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Despite the February decline, the index was 5.4 percent higher than February 2018. (The Trucker file photo)

ARLINGTON, Va. — The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index was down 0.2 percent in February after increasing 2.5 percent in January. In February, the index equaled 117.4 (2015=100) compared with 117.6 in January.

“After a strong January, I’m pleasantly surprised that the index didn’t fall much last month,” said ATA Chief Economist Bob Costello. “I continue to expect tonnage to moderate like other indicators, including retail sales, manufacturing activity and housing starts. Additionally, the level of inventories throughout the supply chain have increased, which is a drag on truck freight.”

January’s reading was revised up slightly compared with our February press release.

Compared with February 2018, the SA index increased 5.4 percent, down from January’s 5.8 percent gain. In 2018, the index increased 6.7 percent over 2017, which was the largest annual gain since 1998.

The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 106.9 in February, 5.7 percent below January’s level (113.3). In calculating the index, 100 represents 2015.

Trucking serves as a barometer of the U.S. economy, representing 70.2 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 10.77 billion tons of freight in 2017. Motor carriers collected $700.1 billion, or 79.3 percent of total revenue earned by all transport modes.

ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 5th day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.

 

 

 

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