Archive for the ‘Qship Others’ Category

The Trucking Industry – A fast growing trade.

Trucking continues to be the dominant mode of freight transportation in the United States. In 2012 trucks moved 9.4 billion tons of freight which is equivalent to 68.5 percent of all domestic shipments. The trucking industry has an optimistic future ahead; a combination of low inflation, a growing housing market, a recovering stock market, and moderate gasoline prices has helped the industry expand 10.3 percent from 2009, and it only continues to look increasingly positive. In April 2013 alone, the industry growth reached 1.2 percent.

A History of Trucking

Think you know everything about the trucking industry? Below are some interesting facts you may not have known; from the history of the first tractor trailer to interesting tidbits that will spark any truck lover’s interest.

The First Tractor Trailer

The first tractor trailer was invented in 1914 by Charles Fruehauf, who was a German-American blacksmith. Fruehauf built the truck in Detroit at a merchant’s request to transport his boat to the Ford Motor Company. Fruehauf was then asked to build a similar tractor trailer to haul lumber, leading him to establish the Fruehauf Trailer Company in 1918.

The Fifth Wheel

John Endebrock was a sales representative at the Sechler Company, a carriage manufacturer. Endebrock created a trailer that could be pulled by a Ford Model T. He then created the fifth wheel, a mechanism that couples the tractor to the trailer. The companies name was then changed to The Trail mobile Company in 1915.

The Motor Carrier Act

Passed by Congress in 1935, allowing the Interstate Commerce Commission (ICC) to “grant operating permits, approve trucking routes,” and “set uniform tariff rates for hauling freight,” leading to little competition among trucking companies. The ICC was abolished in 1995.

The Department of Transportation

Created in 1967, the DOT sets requirements on braking standards, maximum work hours, and “overall safety fitness of interstate carriers.”

Maximum Weight Requirements
In 1982, the Surface Transportation Act was created, stating that interstate highway trucks cannot have a total weight of more than 80,000 pounds.

Largest Cargo Theft
To date, the largest cargo theft resulted in $76 million worth the loss from an Eli Lilly and Co. warehouse loaded with prescription drugs in Enfield, Conn. on March 14, 2010.

Truckload Rates May Not Trend Down for Long

Truckload Rates May Not Trend Down for Long

Shipping rates are dropping, which is typical for this time of year. Mid August is the time of transition. After Independence Day all the fruit and patriotic merchandise has been delivered and consumed, and the growing season has come to an end in Florida, South Texas, Southern California and market place pressure goes down. Rates began declining for reefers since early July and flatbed rates began receding in the last few weeks.
This pattern is likely to continue for a few more weeks. Until then an increase in rates may come in late August through much of September. Of course, freight availability and rates could remain the same instead.
Job growth has been fairly steady for the past six months, and there has been a strong upward trend in manufacturing. This has become the main support to an improvement in consumer confidence. That is just the kind of news that encourages retailers to expand inventories, anticipating a busy upcoming season. We will start to see the impact on truckload volume within a few weeks.