Latest news with #freight
BBC News
11 hours ago
- Automotive
- BBC News
Trucking's uneasy relationship with new tech
When Jared first started out in trucking more than two decades ago, he didn't anticipate he'd be on tour with a country music star, hauling guitars, amps, and other pieces of on-stage equipment."It just happened, right place, right time," the Canadian driver, who prefers not to use his surname, explains from behind the wheel of his towering lorry."I've done 5,000 miles in a month and a half, but there's a lot of breaks this year."But during time off between driving to shows in New Jersey, New York, Toronto and Nashville, Jared will be scanning multiple screens in his cabin – a laptop, tablet and two smart phones – to secure more work. All made possible by new a world away from his early career, when he was transporting fruit and wine, he explains."Back in the day, you had to sit by a payphone if you're on the road and start calling people you've worked with and then you'd have a pager."Today, you just turn on your devices and scan through possible work. It's all digital and you get paid instantly. It's much better for business."The change has been driven by "Uberised" platforms, digitally matching truckers with companies which need to move freight. The phrase was coined due to the similarity to the ride hailing Jared agrees it has made things easier, the truck driver says it has led to wages falling."During Covid, the average was $3 (£2.24) per mile, today on some loads from Toronto to Los Angeles that is $1.10 per mile."Not to mention, he says, the rising cost of fuel. In Canada, eight major platforms including Uber Freight, have emerged to digitise the market for the taxi app, they are capitalising on a fragmented market dominated by smaller players, with 2023 data suggesting that more than eight in 10 trucking and freight firms in Canada employ fewer than five Monette, from Teamsters Canada, told the BBC that the Canadian Trade Union representing over 130,000 members including truckers, has "deep concerns around the efforts to 'Uberise' the trucking sector"."Wages in Canada have remained largely stagnant for the past 25 years, and the rise of gig-style work stands to make things even worse," he argues, adding that "larger, often unionised carriers who operate responsibly by investing in safety, training, and decent working conditions are most at risk"."Truckers don't need another app. We need stronger protections and bigger paycheques."When asked, Uber Freight did not directly address the issue of wages and a spokesperson said: "Flexibility, transparency, and choice are built directly into our platform."Carriers can search for loads based on their preferences, such as lane, equipment type, commodity, and schedule, and either book instantly at a listed price or submit a bid for a rate that better aligns with their the trucking industry a lane refers to a regularly travelled route."Our platform also uses real-time market data and AI-powered recommendations to help carriers make the most of their time on the road," the spokesperson said. Vancouver-based Freightera is among the biggest players when it comes to digital trucking services in Eric Beckwitt meets me at a point overlooking the city's sprawling port, where towering orange cranes move brightly coloured containers against a backdrop of snow-topped he started the company in 2014, there were no trucking apps for Canadian service he has developed allows drivers and customers to search 20 billion regular routes for hauling freight which, he says, can be done in "five or 10 seconds".He points out that, unlike other platforms, Freightera does not set prices. "At Freightera, carriers set their own price. We ask them what they need to be healthy and profitable on each lane, and they set the price."Mr Beckwitt says the service has been good for trucking. Before services like his came along, finding work, or even the best route, was like "finding a needle in a haystack", the Freightera boss explains."Carriers really appreciate Freightera's reliable demand for service, which has grown every year consistently, right through Covid, the inflation afterwards and the current freight recession, one of the largest running freight downtowns," he says. The company is now developing AI to speed up complicated bookings: "Digging through the noisy, messy documents, fine print and inconsistent rules - things like missing paperwork, unexpected charges, or a routing issue that could throw off delivery."Mr Beckwitt also dreams of a completely automated freight industry, "40 years from now", where AI would control global freight."Automatically assigning cargo to networks with the lowest capacity and allowing complete transparency, tracking and even trading while they're in travel". Digital trucking services are employed all over the heavily relies on road freight, so has embraced the new tech."Over 75% of inland freight is moved by road and in many cases it's the only mode of transportation available," says Jean-Claude Homawoo, co-founder of Africa's biggest digitised freight platform, launching in 2016, LORI has grown its network to 20,000 trucks. It doesn't own any vehicles but manages them digitally, trying to ensure that trucks don't stand idle or return home that time, he says, "there are certain routes like Mombasa to Kampala in Uganda, where we have loaded so many trucks that the price of a full truckload has fallen". If truckers are finding work that requires less driving around without cargo, then they should be using less that could be helpful in cutting the industry's contribution to carbon dioxide (CO2) accounts for more than half of CO2 emissions within trade-related transport, according to a 2022 McKinsey Beckwitt is convinced that tech like his, is the answer."It's just so much more energy-efficient and so much more cost-efficient," he adds. One form of AI might be helping drivers find work, but another could, one day, put them out of April, a commercial driverless truck took to an American highway for the first time ever, operated by US-based tech firm China, fleets of driverless lorries are currently operating on test routes around the country."The technology is there," explains Freightera's Mr Beckwitt. "It's just whether we trust it to be let loose on the roads. And there's obviously bureaucratic hurdles in the way and red tape."For trucker Jared though, self-driving freight is still a distant prospect."Transportation has been around for hundreds of years. It's not going to end with people worrying about self-driving trucks, that's not going to happen any time soon."
Zawya
20 hours ago
- Business
- Zawya
Saudi Railways transports 8mln passengers, 15mln tons of freight in H1 2025 performance
Saudi Gazette report RIYADH — Saudi Arabia Railways (SAR) announced record operational results for the first half of 2025, transporting 7.93 million passengers across over 21,000 trips on its North, East, and Haramain High-Speed train networks — an 8% increase compared to the same period in 2024. The strong performance was bolstered by exceptional service during the Hajj season, which saw 1.2 million pilgrims transported via the Haramain line and 1.8 million via the Mashair Metro, totaling over 2,100 Hajj-related train journeys. On the freight side, SAR moved 14.93 million tons of minerals and goods — up 13% year-on-year — helping remove over 700,000 truck trips from the Kingdom's roads. This shift resulted in fuel savings exceeding 72 million liters and a reduction of 190,000 tons in carbon emissions, supporting Saudi Arabia's environmental sustainability goals and logistics efficiency targets. SAR CEO Dr. Bashar Al-Malik said the figures reflect the company's commitment to providing sustainable, efficient transport solutions in alignment with the National Transport and Logistics Strategy. Beyond operations, SAR continues to deliver long-term economic and environmental impact. Its local content initiative, part of the 'Asasat' program, is on track to surpass 60% by the end of the year, supporting national industries and creating quality job opportunities for Saudi talent. Al-Malik also emphasized SAR's vital role in advancing the Saudi Green Initiative by reducing emissions, lowering reliance on conventional trucking, and offering cleaner alternatives that enhance quality of life in cities across the Kingdom.
Yahoo
2 days ago
- Business
- Yahoo
Regional disparity grows as truckload capacity tightens
Chart of the Week: Regional Rejection Indexes – Southeast, Midwest, Northeast, West Coast, Southwest SONAR: Truckload tender rejection rates have diverged significantly over the past year, reflecting growing regional imbalances in the U.S. trucking market. In the Southeast, rejection rates have averaged close to 10% over the past two months, while West Coast rates have remained around 3.5%. This widening gap signals increasing network and pricing inefficiencies and suggests that the truckload market is less stable than it appears on the surface. At this time last year, the gap between the two regions was much narrower: the Southeast averaged around 6%, while the West Coast sat only slightly lower at 5.3%. They're not alone—other regions have also drifted apart. During the winter, the Midwest saw the most disruption, with rejection rates exceeding 12% for the first time in two years, while the West Coast remained under 8%. For context, rejection rates above 10% are typically problematic for shippers, often triggering rapid rate inflation. These spikes are usually associated with holiday periods like Christmas and the Fourth of July. The increasing dispersion in regional rejection rates points to a less balanced freight environment. Carrier networks constantly struggle to keep trucks moving toward areas where equipment is needed. When demand shifts—as it has over the past year—networks are slow to recalibrate. Not so oversupplied Following the pandemic, truckload capacity was so abundant that regional imbalances were largely absorbed. Trucks were readily available, often waiting on the sidelines. That's no longer the case. Since late 2022, the market has been shedding capacity. According to FMCSA data, more than 48,000 registered operators have exited the market. Net revocations have accelerated since last October, now averaging nearly 200 more per week year-over-year. Still, the increase in total rejection rates has remained modest—hovering around 6% in recent months—insufficient to spark a significant capacity crunch or a market 'flip.' Rates are also driving regional inequity One contributor to the growing disparity in rejection rates is the diverging trend in contract rates, particularly out of eastern markets. According to SONAR's invoice data, the average contract rate per mile from Los Angeles to Chicago has risen about 3% over the past two years. In contrast, the rate from Atlanta to Chicago has declined nearly 7%. While these are just two lanes among many, they illustrate a broader trend: outbound Southern California rates have shown more upward pressure than those in the East. Length of haul also plays a role. Freight originating in Atlanta averages about 500 miles, while Los Angeles loads average more than 800 miles. This difference incentivizes carriers to prioritize longer West Coast hauls. Rejection rates out of Atlanta — the Southeast's largest market — have spiked in recent months. Although this hasn't yet driven up contract rates, it has had a strong effect on the spot market. Spot rates in the Atlanta-to-Chicago lane are up 41% since mid-April. If sustained, this could eventually lead to higher contract rates. In the meantime, it highlights how fragile the spot market environment is. The Bottom Line The freight market remains relatively soft, with little upward movement in long-term contract rates. But under the surface, conditions are shifting. The fact that spot rates have surged more than 40% in a well-traveled lane — even in a down market — demonstrates just how vulnerable the truckload environment has become. About the Chart of the Week The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on for future reference. SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time. The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience. To request a SONAR demo, click here. The post Regional disparity grows as truckload capacity tightens appeared first on FreightWaves.
Reuters
4 days ago
- Business
- Reuters
Breakingviews - Railway mega-deal would require heavy engineering
NEW YORK, July 18 (Reuters Breakingviews) - It's somehow fitting that in a country where coal, polio and shipbuilding are making a comeback, there's also an 1860s-style transcontinental railway under consideration. Union Pacific is in talks to buy smaller rival Norfolk Southern, in a deal that would create a $240 billion coast-to-coast U.S. operator by value of combined stock and debt. The idea holds greater appeal than stoking fossil fuel consumption or reviving eradicated diseases, but it also risks having financially harmful effects. Consolidation ground to a halt after a series of mergers in the 1990s shrank dozens of freight carriers into just seven, and was blamed for derailments, disruptions and losses. The government introduced stiffer rules requiring that any large deal enhance competition rather than simply not hurt it. Anticipation of widespread regulatory rollbacks under the Trump administration and sluggish railroad growth prospects have changed the calculus, however, with Union Pacific CEO Jim Vena recently touting the advantages of a cross-country line before the Wall Street Journal reported, opens new tab early deal negotiations on Thursday. Setting aside how pliable Washington's Surface Transportation Board may be, connecting 50,000 track miles into one unified network has some logic. The existing regional system adds costs, including from transferring railcars and complicating service routes. With about 40% of all traffic directly tied, opens new tab to international trade, according to an industry group, higher tariffs also pose a fresh hurdle to increasing revenue at companies which have already firmly squeezed expenses. The harder question relates to value creation. The best, albeit imperfect, comparison is Canadian Pacific's 2023 acquisition of Kansas City Southern, which was grandfathered into the older merger rules, for $31 billion. The buyer promised, opens new tab $1 billion in annual synergies, the bulk coming from growth equal to about 8% of combined revenue and the rest from slashing almost 3% of combined operating expenses. On that basis, Union Pacific would be able to generate about $3.6 billion of synergies, according to Breakingviews estimates. Assuming Union Pacific were to pay the same 23% premium as Canadian Pacific did, valuing the Norfolk Southern enterprise at some $91 billion including net debt, the implied return on invested capital, with the revenue uplift and expense savings factored in, would be about 7%. To just match the target's 7.9% weighted average cost of capital, as estimated by Morningstar analysts, would require some $4.6 billion of synergies. That considerable sum may be within reach, at least according to Bernstein analysts. They see potential benefits of between $4 billion and $5 billion. At more than 12% of the top lines for both companies, or nearly a third of their total operating expenses, it sounds optimistic. Absent some creative engineering, the effort hardly looks worth the long haul. Follow Jeffrey Goldfarb on X, opens new tab and Linkedin, opens new tab.
Yahoo
4 days ago
- Business
- Yahoo
New LTL freight class rules take effect on Saturday
Major changes to the way less-than-truckload freight is categorized will take effect on Saturday following a rework to the National Motor Freight Traffic Association's (NMFTA) decades-old classification system. After many months of internal alterations, public listening sessions and feedback from industry participants, the nonprofit trade group has rolled out a simplified version of its 90-year-old National Motor Freight Classification (NMFC) system. The new guidelines are designed to move the LTL industry toward a density-based approach to classifying freight that more accurately reflects the actual cost of shipping goods. 'The LTL carriers want the full impact of these NMFC changes to be felt, both by them and shippers,' said Scooter Sayers, director of business development (LTL Solutions), at Cubiscan, a maker of freight dimensioners, in an interview. The new coding system will still evaluate freight on four characteristics — density, handling, stowability and liability. However, it will now prioritize density when there are no special concerns with the other three. Under the new rules, the number of density-based rating subprovisions has expanded from 11 to 13. Subprovision 11 has been amended to include densities ranging from 30 to less than 35 pounds per cubic foot (assigned class 60). Sub 12 ranges from 35 to less than 50 pounds per cubic foot (class 55), and Sub 13 covers densities greater than 50 pounds per cubic foot (class 50). 'Freight-all-kinds programs limit the impact, so expect LTL carriers to push even harder to eliminate FAK programs. If shippers want to keep their FAK program, they are going to pay for it,' Sayers continued. The updates are substantial, with roughly 2,000 items being carved out from a list of 5,000 that were under review. 'These changes on July 19 to convert 2,000 NMFC items to a 13-sub table classed by density is just the start,' Sayers said. 'More is coming, and we can expect substantially all commodities will have class at least partly determined by density. It is, after all, the number one cost driver for carriers.' The overhaul aims to make the classification system more user-friendly, reduce costly freight reclassifications and provide more accurate freight rates upfront. The shift aligns pricing with the primary cost drivers for LTL carriers: distance, time and space. For shippers, the changes promise significant benefits, including a simplified classification process, more predictable billing and greater cost efficiency. However, realizing these benefits requires preparation. Experts have been advising shippers for months to audit their commodity classes and ensure they are tracking accurate dimensions, weight and density. Optimizing packaging to minimize wasted space will become more critical, as excess volume can result in a higher class and increased costs. The organization also revamped ClassIT+, an online tool that helps shippers, carriers and 3PLs properly identify freight. Changes include more expansive APIs, an improved search function and faster responses. Additional updates to the NMFC are expected in the coming months and years. 'The winners on the shipper side are going to be those who embrace the digital capture of dimensions, weight and photos at the handling unit level,' Sayers said. ' If carriers have to pick between shippers who provide this and shippers who don't, who are they going to pick? 'LTL carriers want their shippers to provide them with accurate data on the BOL, and will both reward and favor those shippers in the long run.' More FreightWaves articles by Todd Maiden: ArcBest CEO Judy McReynolds to retire J.B. Hunt still waiting for market to turn LTL pricing index to hit record high in Q3 The post New LTL freight class rules take effect on Saturday appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
