Fleet Owner - March 2024

UP AHEAD: AI’S TRANSFORMATIVE POTENTIAL

DRIVER RETENTION

It starts with recruiting

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A number of strategies can be implemented during the driver recruitment process that will make turnover less of a ‘big deal.’

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Today’s fleet leaders must balance decarbonization with focusing on and finding the best equipment supported by today’s best trucking power infrastructure: diesel fuel.

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Class 8 EV growth in the Southeast

Far from the California regulations transforming the trucking industry out West, Benore Logistic Systems is adding more electric Class 8 Peterbilt 579EVs to its fleet operations in South Carolina. Ranked No. 213 on the FleetOwner 500: For-Hire, Benore hauls vehicle parts for OEMs and Tier 1 suppliers. Most of Benore’s customers have strong sustainability goals, according to fleet VP Dennis Kunz. He told FleetOwner that adding EVs sets Benore apart from other carriers by showing customers that “we’re pulling in the same direction as they are. Plus, we, as a company, believe that it’s the right thing to do.”

FleetOwner.com/BenoreEVs

IdeaXchange

When someone sees one of your trucks on the road, what impression do they come away with? The condition of your trucks can be the first impression a potential customer has of your company. According to Gino Fontana, clean trucks are also part of your driver retention practices.  FleetOwner.com/TruckWashing

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AI is a tool, not a weapon

Save your brainpower for your fellow humans

By Josh Fisher Editor in Chief

@TrucksAtWork

The future is closer than ever—and in some ways, it is already here. But we have to find the right way to implement it.

SOMETIMES, IT JUST doesn’t feel like there are enough hours in the day to get it all done. Amidst the constant barrage of email pings and instant message pop-ups on my laptop, text messages buzzing on my phone, social media alerts, and even phone calls, it’s a miracle I can focus on this column. Is there a manager today who couldn’t use an extra hand?

With how short-handed the industry seems to be, I’m guessing the answer is no. We’re certainly not immune here. While working on this issue, we also had to backfill an editor’s position vacant since December, balance staff travel, plan how FleetOwner and our affiliated commercial vehicle publications will cover a very busy March and April season of events, attend mandatory corporate trainings, and everything else that comes with managing a news website and print publication.

As I struggled to find enough quiet time to write this column, I thought it would be great if artificial intelligence could help. AI, after all, is working wonders for fleets, and it’s still in its infancy. Could AI be the answer to finding more time in the day? Spoiler: It is not, but it does have its place.

“Imagine a future where AI seamlessly connects networks, automates responses, empowers efficient asset utilization, and frees humans from repetitive tasks,” McLeod Software’s Doug Schrier told FleetOwner for this month’s cover story on AI (see page 42).

That future is closer than ever—and in some ways, it is already here. But we have to find the right way to implement it.

Many of us have done this for years by optimizing routes and tracking shipments in real-time. This can free up people to focus on human interactions that still fuel business.

As college professors and high school teachers across the nation have been learning since ChatGPT and other AI systems have come online, artificial intelligence does not make writers sound intelligent. It can make writers sound robotic and uninteresting.

For example, we’ve noticed more public relations companies relying on AI for press releases. It’s usually easy to spot because AI can be good at writing a lot without saying much at all. Good writing, on the other hand, is ingrained with humanity.

Just like you wouldn’t want to rely on AI to make essential fleet decisions, I don’t want AI to create content for you. However, I can use AI to review written content for errors and grammar. And you, as a fleet leader, can use AI to improve efficiency in your operations.

Human relationships still reign supreme, Schrier noted. AI is not about replacing human connections. If used correctly, AI strengthens the powers of those relationships. “Imagine AI-powered tools that personalize interactions, analyze customer preferences, and anticipate needs, allowing you to deliver an exceptional and customized experience for each customer,” he said.

AI turns massive amounts of data into rich and highly accurate predictions. This makes it capable of turning raw data too complex for humans into actionable information fleets can use to improve safety, maintenance, and driver behavior, for example. This can help reduce crashes and improve driver safety. Leaders in the field told us that it can attract and retain drivers by optimizing their routes and loads based on preferences and skills.

It could improve your customer service. AI-powered tools reduce customer questions and resolve issues before they arise.

AI is rapidly evolving, but it’s not a silver bullet or the ultimate weapon. It’s a tool that all managers must watch and figure out how it can help—because if you aren’t using it, your competitors are.

So, while I had to rely on my limited brainpower to write this column on deadline, you can save some of your brainpower for the human side of trucking and start figuring out how AI can help cover a lot of tedious tasks and give your fleet an edge. FO

Coalition of rivals: OEMs share vision

Competing executives partner to solve trucking’s ZE infrastructure problems

by Josh Fisher

WASHINGTON, D.C.—OEMs can build electric heavy-duty vehicles, but the nation doesn’t have the infrastructure to support longhaul zero-emission freight. It’s enough of a challenge to create a rare sight in the nation’s capital: Daimler Truck North America, Navistar, and Volvo Trucks North America executives sharing a stage and agreeing they need one voice to meet their lofty decarbonization paths.

The leaders were touting their parts as founding members of a new coalition focused on education and advocacy for building a nationwide zero-emission fueling infrastructure for medium- and heavy-duty vehicles. They were joined by federal officials to celebrate the new Powering America’s Commercial Transportation coalition, or PACT.

“This is bringing together people like us that never used to talk to each other,” John O’Leary, DTNA CEO, said from a shared stage at the National Press Club. “We never did. In fact, we might have talked about each other—but we never talked to each other. So it’s really encouraging to be up here hearing what is coming out of their mouths.”

While sitting beside Navistar CEO Mathias Carlbaum and VTNA President Peter Voorhoeve, the DTNA leader said PACT has great promise because the OEMs share goals. “The commitment is there from our industry,” O’Leary noted. “All we’re saying is we need some help. We want other players out there— whether it’s utilities, whether it’s equipment manufacturers, all that—we need everybody in this game together and then all rowing in the same direction.”

Voorhoeve said the leaders are moving into a new era. “We like to say ‘partnership is the new leadership.’ You don’t often see us all on the same stage.”

The VTNA leader said they are partnering to drive decarbonization forward.

“It’s super important now to get people around the table that don’t normally speak to each other in order to drive speed to market and get this done.”

All three companies produce 70% of new medium- and heavy-duty U.S. trucks and represent five of the seven largest truck OEMs: DTNA’s Freightliner and Western Star, Navistar’s International Trucks, and Volvo Group’s Volvo and Mack Trucks. The three corporations also have goals to become carbon neutral by 2050 and have similar plans to sell all net-zero- emission vehicles by 2040.

“We’re on this journey here with or without regulations,” Carlbaum said.

ZE transport education

PACT is focusing on education because there is still a lot that legislators, regulators, and other policymakers are learning about the challenges to creating a decarbonized U.S. supply chain. While most U.S. charging infrastructure projects focus on light-duty passenger vehicles, electrifying the trucking industry is a more significant challenge. According to the International Council on Clean Transportation, the U.S. needs nearly 600,000 chargers to support the 1.1 million Classes 4-8 ZEVs expected in operation by 2030. Those ZEVs could

use 140,000 megawatts daily, the same as 4.9 million U.S. homes.

“Through PACT, we will spend a lot of time educating and helping the utility sector, helping the fleet sector, helping others really understand about the technology that’s needed,” Dawn Fenton, VP of public affairs for Volvo Group, said during a discussion with trucking industry media after the launch event in which she was announced as PACT chairperson. “If we’re going to be successful in reaching our goals, the government reaching their goals, and the environmental community reaching their goals, we all need to pull up these obstacles and roadblocks.”

Fenton said some help could come through legislation to alleviate or expedite permitting and zoning processes.

Ritchie Huang, Daimler AG executive manager of government affairs, noted that while there are more than 60,000 public light-duty vehicle chargers, there are just 10 for heavy-duty trucks.

Through work with other founding members, Huang said PACT wants more focus on medium- and heavy-duty ZEVs. Along with the three OEMs, founders include ABB E-mobility, Burns & McDonnell, Greenlane, J.B. Hunt Transport, Prologis, and Voltera. FO

DTNA CEO and President John O’Leary, Navistar President and CEO Mathias Carlbaum, and VTNA President Peter Voorhoeve discuss their new coalition during a moderated panel at the National Press Club in Washington, D.C., on Jan. 30.

Photo: Powering America’s Commercial Transportation

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Fleets begin 2024 in equipment-buying mood

Following 2023’s sluggish freight economy, fleets opened 2024 in a buying mood, according to data from two leading commercial vehicle research firms.

FTR reported that January Class 8 preliminary data in North America came in at 26,400 units, up 2% from December and up 35% year over year. ACT Research’s preliminary data showed 27,000 orders, up 600 units from December and 45% year over year.

“Weak freight and carrier profitability fundamentals and large carriers guiding to lower capex in 2024 would imply some pressure in the North American Class 8 market’s largest segment, U.S. tractor,” Kenny Vieth, ACT president and senior analyst, said. “While we do not yet have the underlying detail for January orders, Class 8 demand continuing at high levels at the start of 2024 suggests that over-the-road U.S. truckers are still buying.”

Ryder acquires Cardinal Logistics

Ryder System is expanding its customized dedicated contract carrier offerings in North America after acquiring Cardinal Logistics, a fellow FleetOwner 500 carrier, the transportation company announced.

Concord, North Carolina-based Cardinal offers complex route structures across distribution centers, suppliers, stores, and freight brokerage services. The carrier also has last-mile delivery and contract logistics operations. Cardinal’s dedicated fleet business serves consumer-packaged goods, omnichannel, grocery, building products, automotive, and industrial businesses.

“With complementary contractual services in many of the same industries, we gain greater economies of scale, and we can provide even more

flexibility for transportation networks when seasonality and fluctuating demand inhibit the continuous use of resources,” Steve W. Martin, SVP of dedicated transportation for Ryder, said in the deal announcement.

“Combined with our end-to-end visibility and collaboration technology RyderShare, we can deliver tremendous value for customers looking for more dynamic and resilient transportation solutions.”

The acquisition will give Ryder more network density with another 200 locations, 2,900 power vehicles, and 3,400 professional drivers. Cardinal also comes with more than 7,000 registered trailers, according to FleetOwner records.

Knight-Swift to pick up more Yellow properties

Knight-Swift Transportation Holdings is preparing to take over 10 Yellow Corp. properties, adding to deals it struck late last year for 15 other sites Yellow once operated.

Attorneys for Yellow, one of the country’s largest less-than-truckload carriers until it abruptly closed its doors last July, told a U.S. Bankruptcy Court that the company’s marketing of the 10 leased sites in Colorado, Georgia, Idaho, Kansas, Missouri, and Nebraska led to Knight-Swift submitting a $2.2 million bid that still needed a judge’s approval.

Phoenix-based Knight-Swift (No. 3 on the 2024 FleetOwner 500:

For-Hire list) has been one of the big real estate beneficiaries of Yellow’s demise. In December, the company’s leaders secured owned and leased properties from Yellow. Its previous bids of nearly $52 million have secured properties in 10 states.

Yellow and its advisers sold 118 buildings the company had owned and 25 leased properties. Combined, those transactions generated roughly $1.9 billion, which will close in on $2 billion as a handful of other sales are finalized early this year. Yellow’s executives have used those proceeds to pay off their most considerable debts, including the $700 million CARES Act loan granted by the federal government in 2020 and post-bankruptcy financing provided by hedge fund Citadel and investment firm MFN Partners.

Saia capitalizes on ‘generational type of moment’

Fritz Holzgrefe could hardly have been more emphatic: “At no time in the company’s 100-year history have we had a similar opportunity,” the president and CEO of Saia Inc. told analysts and investors Feb. 2 when discussing his team’s plans to spend up to $1 billion this year on real estate, equipment, and technology—a quarter more than the fleet’s outlays in 2022 and 2023 combined.

The opportunity Holzgrefe and his lieutenants see stems from LTL Yellow Corp.’s bankruptcy. On a

Photo: Cardinal Logistics

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conference call, Holzgrefe called Yellow’s closure “a generational type of moment” for the trucking industry.

Saia (No. 19 on FleetOwner 500: For-Hire) was among the competitors that moved quickly to pick up Yellow freight: The Georgia-based company hired 1,500 people in the second half of 2023 to handle growing volumes, which were up 18% in Q4 versus late

2022 (tonnage rose about 8%) and powered Saia to a record revenue quarter of $751 million.

Saia’s growth strategy is now getting another jolt from 17 former Yellow terminals the company bought for $236 million. That figure is included in the fleet’s 2024 $1 billion capex budget and will grow slightly because of the required investments

to reopen them. On top of that, CFO Doug Col said that another roughly $300 million will go to other real estate projects nationwide.

Mack invests $14.5M to expand RVO plant

Mack Trucks is investing $14.5 million to expand its Roanoke Valley Operations manufacturing plant in Virginia to prepare the facility for higher demand for its MD Series and MD Electric vehicles.

“Mack is committed to making the industrial and product investments we need to be a North American market leader,” said Stephen Roy, Mack Trucks global president. “The expansion of the plant will help us grow in a strategic market segment and support our sustainability goals.”

Virginia Gov. Glenn Youngkin announced the $14.5 million investment during an event with state and local officials at RVO. Youngkin approved a $255,000 grant from a state fund. The project creates 51 jobs. Roanoke County also offered $842,420 in incentives.

Hyzon helps fleet implement FCEVs

Running Class 8-sized routes with an electric truck is a tall order. Whether it’s finding a truck with the power to haul the load and the weight capacity to bring a profit or being able to access/build charging infrastructure, fleets looking to electrify have their work cut out for them. Some fleets are finding Class 8 hydrogen fuel-cell electric vehicles to fit the bill—without sacrificing range.

Performance Food Group (No. 18 on FleetOwner 500: Private) celebrated receiving four hydrogen fuelcell-powered electric trucks at its Vistar facility in Fontana, California. Another truck is expected in March.

Jeff Williamson, SVP of operations at PFG, said the company chose the

Hyzon fuel-cell electric truck solution because of its range compared to a battery-electric, heavy-duty truck.

“The particular fuel-cell vehicles that we’re launching today ... have a range between 300 and 350 miles, which is very suitable for the mix of routes that we have out of this facility and, quite honestly, many of our facilities,” Williamson told FleetOwner

PFG’s new hydrogen fuel-cell trucks join dozens of others in

operation. Nikola Corp. sold 35 FCEV Class 8 trucks in 2023.

Nikola opens first Hyla H2 refueling station in SoCal

Through the Hyla brand, Nikola recently opened its first Hyla hydrogen refueling station in SoCal. With its modular fueler, Nikola’s station in Ontario, California, is its next step to offer H2 refueling for Class 8 trucks.

The station can refuel up to 40 hydrogen fuel-cell electric Class 8 trucks daily. The station is part of a plan for up to 60 H2 refueling stations in the coming years, nine of which are scheduled to open by July.

Feds to fund $300M in truck parking

The U.S. DOT plans to invest $300 million in truck parking projects in seven states to help alleviate the

trucking industry problem.

“The severe shortage of truck parking continues to rank among drivers’ highest concerns, which is why we appreciate that Secretary Buttigieg and a growing number of states are making these projects a top priority,” said Chris Spear, American Trucking Associations president and CEO.

“America’s highways are our shop floor. When drivers finish their shifts, they deserve to know that they can find a safe place to sleep that night.”

Last year, the American Transportation Research Institute named truck parking the second biggest issue the industry faces, topped only by the economy.

According to ATA, these federal investments will add about 1,000 new truck parking spaces in Florida, Missouri, Pennsylvania, California, Oregon, Washington, and Wisconsin. Funding comes from the Infrastructure Investment and Jobs Act. FO

Photo: Hyzon Motors

begins during recruitment

Strategies to implement during driver recruitment that make turnover less of a ‘big deal’

by Jade Brasher

Labor is on the industry’s mind, as evidenced by the results of a survey conducted by the American Transportation Research Institute in 2023 on the top trucking industry issues. Survey respondents, which included motor carrier executives and personnel, truck drivers, and other industry stakeholders, indicated that the driver shortage was among the top five issues facing the trucking industry in 2023. While down two spots from No. 2 in 2022, the fact that the driver shortage remains among the top five issues facing industry professionals is enough to warrant a remedy.

ATA surveyed carriers and found that from 1995 to 2017, the average driver turnover for large truckload carriers was 94%, while the average turnover rate for smaller truckload carriers was 79.2%.

While LTL seems to be a segment that’s more favorable to drivers (with an average turnover rate of 11.7% between 2000 and 2017), the truckload segment is a necessary part of the supply chain; therefore, it’s essential to keep it staffed—and that comes at a high price. Estimates vary, but a study published in 2000 by the Upper Great Plains Transportation Institute found turnover cost fleet companies $8,234 per driver on average. That’s the equivalent of $14,828 today.

“Always, turnover is a big deal when we talk to our trucking customers,” said Jasper Purvis, VP of business development at Selerix, a benefits administration platform. “How do they reduce

ATA estimates the industry was short 78,000 drivers at the start of 2023, down from the 81,000 peak in 2021.

Source: American Trucking Associations

turnover because the cost of that is so high for them? Just to try to recruit and get new people that are good is always difficult.”

Ways to improve recruitment

There are multiple ways to improve a fleet’s recruitment process, beginning with how the job is posted. Additional changes include improving driver benefits—which can be achieved at little cost to the fleet—and building a company culture that fosters employee growth.

● Advertise for the job

Improving the driver recruitment strategy begins before the opening is advertised. Mark Murrell, president and co-founder of CarriersEdge, a provider of online driver training for the trucking industry, said fleets should decide what kind of driver they are looking for and then advertise for that position.

The trucking industry has various driving roles: Some keep drivers away for weeks at a time, while others allow them to come home each evening; other positions come with stressful driving scenarios, such as frequent tight parking or urban driving. Because the trucking industry is so varied, it’s crucial that fleets make the position details known from the start.

“Every fleet has somebody who is going to be an ideal fit for them and a terrible fit for them,” Murrell told FleetOwner. “You have to know, ‘What kind of person are we looking for?’ … Figure out what is the job that you’re offering, and be very clear on marketing that.” Next, “screen applicants that will fit with that type of work.”

Murrell said that hiring managers tend to focus on clean driving records, jobs held in the past few years, and drug and alcohol issues, but he said those aspects of the job are “table stakes.” While necessary to look at when considering employment, having a clean record won’t ensure a driver will be an excellent fit for the open position.

● Benefits extend beyond working hours

When a driver considers a new job, they’ll also consider company bene ts. The driver might be on company time eight to 11 hours a day, but the bene ts eets can provide should extend well beyond those hours of service.

“[The drivers’] whole life, to me, is about bene ts,” Purvis said. Fleets should ask whether they “incorporate bene ts and, more important, rewards for your employees outside of work ... so when they are at work, they’re focused and doing the best they can.”

This requires eets to think beyond traditional bene ts such as PTO, health care, and 401(k). Purvis said eets could encourage their drivers to do things outside of the workplace and with their families. This could mean rewarding a driver with a short stay at a nice hotel for them and a guest.

It’s easy for eets to xate on the driver alone when considering their health and wellness, but Purvis noted driver wellness isn’t about just one person—“it’s that entire ecosystem that lives around them,” which is their family.

“How do you encourage health and wellness for the [drivers’] entire families?” Purvis said. “What we’ve come to nd is that when the families are healthy, the employee becomes healthier.”

Distribution of Industry Issue Prioritization Scores

The driver shortage has a ected the industry, evidenced by the results of a 2023 American Transportation Research Institute survey about top trucking industry issues. Driver retention was the industry’s eighth-highest concern, according to survey results. Source: American Transportation Research Institute

● Culture is key

Another bene t that leaders might forget about, but drivers are often keenly aware of, is the company culture. The bene ts a company provides, primarily when related to driver wellness, go hand

There were 2.19 million heavy-duty trucking jobs in the U.S. in 2022.

in hand with the company’s culture. To improve company culture, Purvis said eets should start by understanding that work is a “ nite point for an employee’s life cycle.” He told FleetOwner that eet leaders should acknowledge that while work is an important aspect, it also impacts the employees outside the cab.

Developing a healthy, positive company culture begins with the hiring process. Purvis said health and wellness should be highlighted throughout the process as a differentiator from other eets. This also underscores the importance your company places on health and wellness. If new hires see this as an obstacle to their happiness, they will likely decide on their own whether they are a good t.

Retaining driver recruits

Recruiting drivers is only half the equation. Once those drivers are recruited, a

*The bars reflect total points from first, second and third place rankings Issues that generate more second and third place

fleet leader’s next challenge is keeping them. The same ATRI study that found the driver shortage to be the fourth top industry concern in 2023 found driver retention to be the eighth.

● Invest in career growth CarriersEdge facilitates an annual rewards program called the Best Fleets to Drive For. Company drivers or owner-operators working with the fleets must nominate these companies for them to be considered. CarriersEdge conducts surveys from nominated fleets to determine the winners. Murrell told FleetOwner that these surveys reveal that “companies that invest in their employees tend to have happier employees who don’t leave or are less likely to leave.”

Investing in employees to increase retention could include investing in driver training and driver coaching. This will also help break up some of the monotony in a professional driving job, according to Murrell.

Companies that invest in having substantial education programs for their drivers always have better retention and better performance, Murrell said.

Additionally, fleet leaders can use driver training practices to turn their best drivers into driving coaches. This shows drivers there are growth opportunities within the company.

John Luciani, COO of A. Duie Pyle, a transportation and logistics services company, said his company provides a “career path” for its drivers. During orientation, drivers meet some managers who were promoted out of the truck.

Luciani said this practice effectively demonstrates to employees “that we are committed to their long-term growth and achieving their career goals.”

● Have a culture drivers want to work for Purvis pointed out that during the hiring process, staff members provide endless communication and a heightened level of engagement with a driver. But once

new drivers

The industry will need to hire 1.1 million over the next 10 years to replace its retiring workforce.

Source: American Trucking Associations

the driver becomes a successful team member, that level of engagement tapers off drastically.

“We put so much effort into trying to find people,” Purvis emphasized, “but how much effort do we really provide in keeping them?”

This is where developing open communication can significantly benefit both drivers and managers. Purvis suggested having an internal communication dashboard, such as a private Facebook group or a Slack channel. Still, Luciani said his drivers seem to appreciate a simple open-door policy and regular company newsletters.

Luciani said Pyle also facilitates an annual, anonymous company-wide survey to allow Pyle leaders to make improvements and give drivers a “vehicle” to provide constructive feedback “so their voices can be heard.”

Involvement is closely tied to engagement; for that, incentivization goes a long way. Purvis said friendly competition gets people involved and helps build and maintain a positive company culture. For example, fleets can use incentives to have departments, terminals, or regions compete for the most efficient or safest performance scores. This sense of competition also helps managers communicate consistently with their drivers. Incentivize managers to continue that engagement by getting their driving teams fully involved in the competition.

Build up your greatest competitive advantage

Murrell’s advice to fleets regarding recruitment is to measure the results, not the actions taken. Instead of measuring how many calls a recruiter made or how many days it took to hire a new driver, Murrell suggests that fleets should focus on how long new hires stick around, which drivers have the most longevity, and which hires don’t work out.

“Start at the end point of the successful hire, and then move forward in the process until you get to the recruiting stage,” Murrell told FleetOwner.

In terms of retention, he advised looking “across the organization at where the issues are and including drivers in the solution.”

In line with involving drivers in solutions, Luciani stressed the need to build trust with each driver and staff member.

“It’s the trust of ownership and senior leadership where we earn the discretionary effort of our employees to do the right things to satisfy the needs of our customers or to exceed the expectations of our customers,” Luciani said.

Companies hire employees, but individuals fill open positions. Luciani recognizes that A. Duie Pyle’s employees are the company’s “greatest competitive advantage” and have been throughout the company’s 100-year history. FO

by David Heller

ZE regs threaten supply chains

Is the industry being rushed to push the decarbonization cart?

THROUGHOUT THIS column space, I have frequently referenced idioms. Nothing rings truer today than the old reliable “cart before horse” scenario playing out in California and nationally as our industry grapples with a zero-emission transition.

The freight delivery model began with a cart and a horse. Let’s ensure we maintain the correct order when considering the potential impacts of the future.

There are deadlines stipulated by the Advanced Clean Fleets Rule out of California that have inevitably created more questions than answers over what must happen first. In any case, a normal sequence of events is being abandoned in place of compliance dates and assumptions that everything will fall into place

after that. The cart is officially in front of the horse.

Indeed, the trucking industry favors a cleaner environment; our history proves it. In 36 years, the industry’s emissions output has changed so drastically that it takes 60 of today’s trucks to emit what just one truck did in 1988. The industry will eventually achieve zero, but when it will happen is another question. The “when” has far-ranging implications for multiple industries across the nation.

As an industry, trucking simply cannot support regulations that set unachievable standards and force motor carriers into a transition on unproven equipment. Range and weight problems continue to raise questions, price tags make electric tractors unaffordable compared to diesel-powered trucks, and current regulation deadlines will likely pass on costs and consequences to the American public.

We must view these regulations realistically: How do they relate to affordability, achievability, and reliability?The Department of Energy estimates that a battery-electric Class 8 truck costs about $457,000, while a diesel-powered truck costs around $160,000. That’s a huge difference—particularly when BEVs have yet to prove they can fit into longhaul operations.

Unfortunately, pricing is not the only question for carriers across the country. Does this nation’s infrastructure have the capability to support a transition to electric vehicles? What about how they operate during extreme weather conditions? Hot summers and cold winters already come with state-based announcements and warnings that suggest charging vehicles in off-peak hours because of cooling and heating needs in these states. Imagine the strain on our nation’s power grid if more fleets need

to charge vehicles to deliver freight.

Questions about reliability almost always accompany this conversation. Our nation and professional driving population is built around diesel-powered engines. Over the years, this traditional power source has connected the supply chains. Any change in reliability could dramatically affect the fragile economy and the goods that our industry delivers to a nation that needs them.

Achieving comparable range is one thing, but so is how well that vehicle holds up over those miles in tremendous changes in weather and fluctuating temperatures. As we know, freight is not delivered in a vacuum—not all days are sunny and 72 degrees. It can be below zero or well above 100 degrees, and tomorrow’s truck will need to deliver in those elements, some of which can significantly affect the charge life of a battery.

Indeed, we hold to the notion that our nation needs environmental improvements so that our grandchildren will inherit a planet in a better condition than when we did—and our industry continues to demonstrate that notion. However, we cannot simply provide a deadline, wave a magic wand, and pray that it happens. Any of these changes must be strategic and consider the unintended consequences of furthering a date-based rule without fully understanding the work behind the scenes.

The freight delivery model began with a cart and a horse. Let’s ensure we maintain the correct order when considering the potential impacts of the future. FO

David Heller | Dheller@truckload.org

David Heller, CDS, is senior VP of safety and government affairs for the Truckload Carriers Association. He is responsible for interpreting and communicating industry-related legislation to TCA members.

Photo:

Oregon trucking fights weight tax

OTA leader says trucks could overpay $500M in taxes by 2025

by Jenna Hume

Oregon is one of the few remaining states with a vehicle weightmile tax. But a new lawsuit filed by the Oregon Trucking Association (OTA) and several Oregon fleets against state lawmakers and the state’s Department of Transportation claims “motor carriers have been overcharged for road use under the state’s weight-mile tax,” according to OTA’s website.

OTA’s leader told FleetOwner that trucking fleets could end up overpaying $500 million in state taxes by 2025. When contacted, ODOT declined to comment for this article. The fleets involved in the lawsuit with the OTA are A&M Trucking, Sherman Bros. Trucking, and Combined Transport (No. 238 on the FleetOwner 500: Top For-Hire list).

Jana Jarvis, OTA’s president and CEO, outlined how long these overcharges have been a problem for Oregon fleets. A highway allocation study is conducted every two years to ensure fair charges because of the state’s weight-mile tax. Oregon has a constitutional amendment that requires the state to ensure heavy and light vehicles pay weight-mile taxes that are fair and proportional, Jarvis explained to FleetOwner

The 2019-2021 Highway Cost Allocation study forecasted that trucks would overpay 3.5%, and passenger vehicles would underpay 1.5%. The 2021-2023 allocation projected trucks would overpay by 16%. “I started talking about what we needed to do to fix that,” Jarvis said. “At the same time, our Department of Transportation started talking about not having enough money for maintenance.”

Since Oregon has the second-most passenger EVs in the U.S., ODOT concluded that the state’s highway maintenance revenue was falling because EVs

don’t contribute to the fuel tax.

The 2023-2025 Highway Cost Allocation study expects trucks to overpay by 32.4%. Jarvis wanted to address these overcharges then, but she said, “Nobody wanted to talk about it, and ODOT was complaining about not having enough money, so they pushed it off and said ‘we’ll deal with it when we do a new transportation package in 2025.’ When you look at the numbers, if they wait until the 2025 legislative session, heavy vehicles will overpay in this state in excess of half a billion dollars.”

When communication with ODOT, lawmakers, and the governor’s office failed, Jarvis said she, the OTA, and Oregon fleets felt their only other option was to file a lawsuit.

According to Jarvis, this lawsuit has been brewing since 2017. That year, Oregon’s legislature passed House Bill 2017, a transportation funding package. She said this legislation “instructed ODOT to divert most of the additional tax increases into new construction projects, primarily.” These construction projects included the Rose Quarter, I-205, and Highway 217.

“We have been historically the most

expensive state in the nation for trucking taxes and fees,” Jarvis said. “And yet, we went ahead and agreed to House Bill 2017 primarily around the ability for us to fix the congestion problems in the Rose Quarter. ... It’s just hugely important to Oregon’s economy.”

Jarvis claims ODOT underestimated the cost of this project, and money had to be redirected from the Rose Quarter construction to the Abernathy Bridge on I-205.

“They need to roll the rates back,” she said. “We need to just bite the bullet and get us back into an equitable position in the way we’re being taxed here in the state. And then we’re willing to have a conversation about how we’re taxed.”

Jarvis believes a fuel tax would be the most cost-efficient way to tax vehicles in Oregon, rather than the current weight-mile tax or a fuel tax with a modified VMT.

“But first and foremost, in Oregon, we have to start caring about having roadways and understanding the connection between roadways and economic development in our state, and that seems to be sadly missing here,” Jarvis said. FO

Photo: Florin Seitan | 121687647 Dreamstime

Freight recession silver linings

Fleet leaders see signals that the ’23 downturn is bouncing back in ’24

by Geert De Lombaerde

Looking for a sign that today’s drawnout freight downturn might soon move into history books? Old Dominion Freight Line CFO Adam Satterfield said the North Carolina-based carrier, one of the largest in the country, expects to soon begin hiring more people to meet growing volumes.

Speaking to analysts after Old Dominion (No. 10 on FleetOwner 500: For Hire list) reported fourth-quarter profits of $323 million on revenues of nearly $1.5 billion, Satterfield noted that the company finished last year with a workforce of about 22,800, which was more than 4% smaller than at the end of 2022. That figure is even more notable because Old Dominion was among the less-than-truckload carriers that picked up thousands of shipments after Yellow Corp. shuttered its doors in July.

And while Satterfield added that Old Dominion’s payroll is “appropriately sized for our current shipment trends,” he noted that his team is replenishing its talent pipeline. Old Dominion was able last year to move some workers from its docks into trucks, but that’s not a repeatable strategy.

“We’re running our truck driving schools right now to continue to produce more employees that have their CDLs and will be available to drive as demand continues to improve,” he said.

Old Dominion’s fourth-quarter profits and revenues were just about even with those from the last three months of 2022. The company’s operating ratio ticked about half a percentage point to 71.8% as its daily shipments grew 1.5%, but tons per day slipped 2%, reflecting the smaller loads Yellow gravitated toward.

Another indicator that the freight recession may be nearing its last breaths came from Mark Rourke, president and

“2024 is shaping up to be a transition year as shipments should recover ... and capacity continues to leave the market slowly and steadily.”

— Mark Rourke, Schneider National

CEO of Schneider National. The leader of the Wisconsin-based carrier (No. 6 on the FO500 list) said 2024 is shaping up to be a transition year as shipments should recover—especially in the second half of the year—and capacity continues to leave the market slowly and steadily.

Rourke said those factors are becoming apparent to a growing segment of

Schneider’s truckload, intermodal, and logistics customers. He and EVP Jim Filter said that some clients are trying to get one last set of concessions from their shippers, but a growing number are recognizing that freight prices can’t fall anymore.

“No one believes we’re in this condition for the long term. It’s just a matter of when,” Rourke said on his team’s Q4 earnings conference call on Feb. 1. “I think you’re seeing more balanced thinking going forward than we would have described as we were coming into this juncture in 2023.”

That’s what Bruce Chan and other Stifel analysts are seeing as well. Commenting on Old Dominion’s results, they wrote that the pricing environment now looks “constructive and rational” even if volumes haven’t rebounded to the levels many market players last spring expected them to.

“As the demand environment firms this year, we expect yields to accelerate modestly to the mid-single digit range,” Chan wrote on Jan. 31. FO

Photo: Old Dominion Freight Line Inc.

Paccar planning for busy 2024

Company’s plans include expansion as forecasts hold steady

by Geert De Lombaerde

Those looking for a notable drop in 2024 North American truck sales won’t have much luck knocking on the door of Paccar CEO Preston Feight.

On a conference call after Paccar reported its fourth-quarter profits, Feight said he and his team are sticking to their fall forecast of 260,000 to 300,000 Class 8 sales in the U.S. and Canada this year. The midpoint of that range is about 6% below 2023’s 297,000 unit sales.

Paccar’s Kenworth and Peterbilt brands accounted for 109,000 trucks (versus 96,000 in 2022). Feight said demand is holding up, especially for vocational, less-than-truckload, and medium-duty vehicles. “As far as a slowdown in orders, I’m not sure I can

recognize that in our major North American markets,” Feight said. “We see good order intake and good visibility.”

Asked if significant emissions regulation changes planned for 2027 are pulling forward some sales to now, Feight told analysts that “might be a little much” but added that such orders could begin to come in late this year or 2025.

Paccar produced Q4 profits of more than $1.4 billion versus $921 million in late 2022. Trucks and parts sales were $8.6 billion, up 11% year over year, while financial services climbed more than 20% to $485 million, but its profitability fell due to higher interest costs.

Those numbers help Paccar maintain its investment pace. CFO Harrie Schippers told analysts he is projecting capital spending to grow to $750 million from 2023’s $698 million. This could cover adding truck manufacturing capacity in Chillicothe (Ohio) and Mexico.

Further, Feight said Paccar could use some of its cash and marketable securities—up from $6.2 billion a year earlier—to buy competitors. FO

Photo: Paccar Inc.

STILL RULES

But OEMs want to work with fleets on the future

by Josh Fisher

The clock is ticking on modern heavy-duty trucking. But today’s eet leaders must balance that push to embrace decarbonization with the pragmatic pull to focus on and nd the best equipment supported by today’s best trucking power infrastructure: diesel fuel.

medium-duty electric truck offerings. “Electric vehicles are still a small portion of the market, and while adoption is expected to grow over the next few years, the trucking industry is very large and diverse in both applications and routes of operation.”

That more regulated, fossil-free-fuel future is getting closer with initial federal clean truck emissions regulations beginning with 2027 models. Those regulations are supposed to be phased in over time, which means most eets will still rely on diesel powertrains well into the next decade.

Being clean and green isn’t new to trucking. Today’s eet leaders and drivers operate in a much different world than previous generations. Contemporary clean diesel-powered Class 8 equipment produces 99% less emissions than heavy-duty trucks built in the 1980s, according to the American Trucking Associations.

Diesel’s not done

And with many of those post-2027 clean trucking regulations still yet to be nalized, DTNA’s strategy is evolving.

“As far as the timeline to transition away from diesel, our ambition is to transition to exclusively CO2-neutral new vehicles by 2039,” Copeland explained. “It’s important to remember, these are new technologies—and it will take time for eets to begin to test them out in smaller numbers.”

He noted that eets might want to try out a few trucks operating on alternative fuels, such as battery-electric. “Their site may only be able to support those one or two units,” he said. “And adding more after they evaluate their needs is likely to take several years of progress to continue working on getting scaled up.”

Developing more ICE options

“We still expect diesel to be a major factor in transportation for many years— and we are investing in the next generation of Detroit engines,” Len Copeland, product marketing manager for Daimler Truck North America’s Detroit brand, told FleetOwner

of Detroit in

Diesel will continue as trucking’s primary fuel for long-haul operations in the coming years. Copeland noted that electric commercial trucks are better suited for pickup-and-delivery and regional haul operations on set routes.

“The eCascadia and eM2 are in production and ready to be put into service provided infrastructure is in place to operate them,” Copeland said of Freightliner’s heavy-duty and

Major truck OEMS are still working on making internal combustion engines more ef cient. “As we’ve said, we see a long future for the internal combustion engine—particularly running on renewable, fossil-free fuels, which will make an even greater reduction in CO2 emissions,” Johan Agebrand, product marketing director at Volvo Trucks North America, told FleetOwner

He said VTNA is focusing on its “three-pillar” decarbonization powertrain strategy. “We understand that there is no silver bullet answer to address all applications to decarbonizing transportation.”

The rst major OEM to market with an over-the-road Class 8 BEV, Volvo VNR Electric trucks already have more than 3.65 million customer miles in the U.S. and Canada. However, the OEM is still focused on making its diesels more ef cient.

VTNA is launching its all-new Volvo

Detroit DD15 engine is among the latest in DTNA’s heavy-duty power technology.

Photo: Daimler Truck North America

Photo: RichLegg | 1279002529 | Getty Images

VNL flagship Class 8 truck this year (see page 36). The new model is up to 10% more efficient than the 2018 VNL, Agebrand said. “The platform that the all-new Volvo VNL is built on will be the platform for all our future technologies, including BEV and fuel cell, and the future of the ICE running on drop-in fossil-free renewable fuels, including hydrogen. In terms of investment, we must continue to invest heavily in all three strategies.”

Paccar, which produces Kenworth and Peterbilt trucks, also focuses on multiple powertrain technologies. Sarah Abernethy, Kenworth powertrain marketing manager, told FleetOwner the OEM wants to ensure its fleet customers have options “as we head into the future.”

‘A long way to go’

Paccar’s California Air Resources Board-compliant MX-13 engine will be released later this year. “And we’re developing the next generation of cleaner diesel engines alongside our zero-emission lineup of battery-electric and fuel-cell powertrain options,” Abernethy noted.

Along with its powertrain systems, including Class 8 hydrogen fuel cell

technology developed with Toyota, Kenworth offers Cummins’ compressed and liquid natural gas lineup of powered products, including X15N and L9N systems. “Both are CARB compliant to ensure our California customers have options,” she said.

While California boasts the strictest fleet emissions rules in the nation, Abernethy noted that Kenworth still focuses on all its North American customers. “While we know that zero-emission powertrains are critical to our success, we also know we have a long

It’s not too early to think green

If you are considering—or being pushed into—new zero-emission powertrain technologies, you can’t start planning too early. Though the motors are simpler than today’s complex diesel systems, your fleet operations might need more thought.

“One of the biggest pieces of advice we often give to our customers is to start early,” Trish Reed, Navistar VP of zero emissions, told FleetOwner. “When we’re talking about zero-emission vehicles, we’re no longer just talking about the equipment. We’re talking about route analysis, infrastructure evaluation, charging installation, discussions with local utilities—the list goes on.”

The potential zero-emission vehicle landscape is broad. It’s not just battery-electric vehicles. Dozens of hydrogen-powered, fuel-cell-electric vehicles are already in operation in California. And engine-makers,

way to go—which is what is driving our continued development of more efficient diesel powertrains as well,” she said.

As regulations become firmer, she expects customer demand for cleaner technologies to grow.

“Kenworth is focused on offering products and services to help our customers adopt ZEV vehicles, including a dedicated Kenworth grant-writing resource who is familiar with current and upcoming grants that can help fleets manage and navigate the application process,” Abernethy explained. FO

such as Cummins and Bosch, are developing hydrogen-powered internal combustion engines for heavyduty trucks. There are other low- and near-zero emission fuels, such as natural gas and renewable diesel.

More options, more planning

“The future landscape of ZEVs is pretty broad when looking at the sources of propulsion,” Len Copeland, product marketing manager for Daimler Truck North America’s Detroit brand, told FleetOwner. “If you look at diesel configurations today across many fleets, you will see many configurations. Seeing different solutions based on individual needs will continue into the future.”

Copeland said that right now, electric configurations fit best with regional operations. “These electric configurations will spread into some areas of long-haul applications that will also likely have units powered by

Freightliner Cascadia features Detroit’s integrated diesel powertrain.

Photo: Daimler Truck North America

“THE FUEL SAVINGS WE RECEIVE HAS BEEN, ON AVERAGE,

BETWEEN 2 AND 2.5%”

-

Brundage-Bone National Service Manager, Jeff LaBounty

And we can do the same for you.

LET US PROVE IT.

H2 fuel cell setups and then hydrogen combustion for heavier and vocational types of applications,” he said. “Just like today, I would say to spec vehicles for your application, and DTNA is committed to helping find the best propulsion source for your specific need.”

All of these propulsion options can be daunting. That’s why Copeland and other OEM executives said it’s easiest to go right to the source as you start to plan out your fleet’s zero-emission options.

“This is where discussions with customers and early engagement in the sales process becomes key,” Sarah Abernethy, Kenworth powertrain marketing manager, told FleetOwner. “Understanding the intended route is a critical first step in the discussion, and alongside that— talking through fueling and infrastructure will help ensure success with ZEVs.”

Infrastructure lags

Infrastructure can be the biggest hurdle fleets face when adding in non-diesel equipment. Long-haul trucks can find diesel along any major road in the U.S. However, finding a high-powered electric truck charger or hydrogen outside a dedicated distribution center is rare.

“The technologies are being deployed, and the industry needs scale for the infrastructure to be built,” Abernethy noted. “Every day, we get closer.”

California has the most H2 fueling options, with more public hydrogen stations expected to come online in the Golden State this year. Public heavy-duty electric truck chargers are also rare, so fleets need to plan ahead before investing in these emerging technologies.

“On the battery-electric side, we continue to take a consultative approach with our customers, ensuring that we match the right truck to their application,” Johan Agebrand, VTNA’s product marketing director, told FleetOwner. ”This includes providing strategic route-planning guidance, access to charging hardware through our Vendor Direct Shipping program, and end-to-end infrastructure support through our Turnkey Solutions partners.”

VTNA now has more than 50 certified EV dealers in 27 states and provinces. Another 40 dealers in the U.S. and Canada have started the certification process, Agebrand noted. Volvo aims to sell 50% zero-emission vehicles by 2030 and 100% by 2040.

“The product o ering is only one portion of the equation,” Agebrand explained. “In order to reach a 1:1 scale in great numbers of zero-emissions vehicles, infrastructure improvements must continue and must increase in speed for our customers to scale at their desired rate. Incentives and grants are also critical components in the adoption of zero-emission vehicles.”

It’s about more than the truck

Agebrand said that dealers can help fleets assemble their decarbonization puzzle pieces.

“The truck is a very small piece of the total equation,” he explained. “It’s critical first to understand where they’ll be deploying a ZEV. We want to make sure that it’s in an area serviced by one of our certified EV dealers. Then, understand exactly what the routes and type of cargo being utilized are. Does the customer need a six-battery pack configuration, or is a four-battery pack su cient for their operation?”

From there, they focus on utility timelines to set up depot charging or find other ways to power the EVs, such as charging-as-a-service options. “Zero-emissions deployment is a complex and changing landscape,” Agebrand added.

Beyond infrastructure, Kenworth’s Abernethy noted that fleets should consider how weight and wheelbase impact BEVs and FCEVs “to ensure the truck is set up for success and will meet the customers’ needs.”

Navistar’s Trish Reed said that International Truck dealers take a “holistic approach to transition to help guide the customer.”

She added: “We also understand that based on vehicle application, usage, and customer motivations, the speed to carbon-reduction goals will vary. So, if there was one thing that is di erent when spec’ing out a zero-emissions vehicle, it would be that you have a lot more to consider than just the vehicle.” FO

Shown is a rendering of the Kenworth T680 FCEV powertrain, which uses hydrogen to power the fuel cell that runs the electric motor. Paccar developed the FCEV with Toyota.

Photo: Kenworth Trucks

by Kevin Rohlwing

Another EV obstacle: Tires

Electric trucks wear out tires faster, adding to total cost of ownership

A FEW SHORT YEARS ago, the buzz around a Class 8 electric vehicle manufacturer was impossible to ignore. It was a masterclass in marketing and promotion that culminated in the founder being found guilty of deceiving investors in December 2023. Everyone was so happy to hear that electric trucks were on the market that they wanted to believe everything he said. A jury determined he was less than truthful in his claims, which defrauded investors of more than $660 million.

Given the reduced tread mileage, fleets with electric trucks need a comprehensive retread program to control tire costs.

The lack of infrastructure is a significant obstacle for electric vehicles. It’s the combination of electricity production and charging accessibility that is a long way from being able to support a national network of electric trucks. Daimler Truck, Navistar, and Volvo recently formed Powering America’s Commercial Transportation to generate government support in Washington to develop a national heavy-duty

charging infrastructure (see p. 10).

According to the Department of Energy data, only nine fast-charging stations in the U.S. can accommodate heavy trucks. If electric trucks are ever to replace diesel engines, charging infrastructure must be significantly expanded

Electric trucks are here in tiny numbers, and a few fleets have operational success. Like their passenger vehicle counterparts, the rate of tire wear is accelerated, so it must be factored in when determining the total cost of operation. With fewer than 1,000 overthe-road heavy-duty EVs, fleets are still in the data-collecting stage, but tread mileage will be an unavoidable trade-off.

Tire manufacturers are in various stages of supplying tires for electric trucks and buses. There will likely be some construction, rubber compound, and/or tread design changes to account for the additional torque and weight. The small number of electric trucks is creating data to help shape the first generation of EV truck tires. Still, the applications are limited, so the data is limited.

Inflation pressure maintenance is even more critical for electric trucks because battery weight creates added stress on the tires when the vehicle is empty. It also affects rolling resistance, which affects range. In an application where the treadwear rate is already accelerated, underinflation will only increase irregular wear conditions. There is some room for error when it comes to inflation pressure maintenance on diesel trucks. Electric trucks have a finer line between underinflation and overloading, so checking and maintaining inflation pressure is crucial.

In addition, service considerations must be addressed. Lifting points on diesel Class 8 tractors are usually relatively easy to identify and utilize. The same cannot be said for electric trucks. Using

the incorrect lift point on a diesel truck can damage a specific component. Using an electric truck’s incorrect lift or support point can result in a six-figure repair because the entire drive motor may need to be replaced. Fleets with electric Class 8 tractors must ask the manufacturer for the proper lift and support points to communicate with service providers.

Tires on electric trucks have a reduced tread mileage, so fleets need retreading programs to control tire costs. Replacement intervals will be shorter, so the lack of retreading will result in higher expenses. Like other high-scrub applications, casings must be capable of multiple retreads because of the limited mileage.

It’s also easier for retread manufacturers to offer special rubber compounds and tread designs for application-specific electric trucks. The goal of getting every mile out of every casing doesn’t change with an EV. It just becomes more difficult. Retreading will make it easier.

We are still a long way from mass operation of EVs in the passenger space, and with only nine fast-charging stations at the national level for heavy trucks, future projections for Class 8 electric trucks are not promising. There will be applications where the electric model works, but the benefits will be measured in areas like reduced emissions and noise.

It will take time for electric trucks to be widely adopted. There are fewer than 1,000 on the road today and many unknown factors still being found. The lessons being learned for the fleets currently testing or operating electric trucks will determine the future of the heavyduty EV market. FO

Kevin Rohlwing | krohlwing@tireindustry.org

Kevin Rohlwing is the SVP of training for the Tire Industry Association. He has more than 40 years of experience in the tire industry and has created programs to help train more than 180,000 technicians.

Photo: Tramino 1276475303 | Getty Images

Volvo shows off all-new VNL truck

First redesign in a generation creates efficiency inside and outside the cab

by Josh Fisher

DUBLIN, Virginia—Efficiency has become one of the buzziest of buzzwords. While a big focus is on how efficiency can make trucking greener, Volvo Trucks North America leaders said the all-new Volvo VNL truck could help fleets save more green.

“We are confident that this truck will deliver customers a value of $20,000,” Magnus Koeck, VTNA VP of marketing and strategy, told industry media gathered at the Volvo Customer Center in the Blue Ridge Mountains in southwestern Virginia.

It’s the first complete redesign of the OEM’s flagship Class 8 vehicle since the 1990s. Volvo testing of the new VNL, which Koeck said was created from a “white sheet paper,” has shown fuel efficiency improvements of more than 10%, which could be worth $5,000 to $6,000, based on the current diesel prices. More annual savings come through the new Class 8 truck’s safety (which VTNA values at $5,800 per year), driver productivity ($5,000), connected services, and better uptime ($3,400). “We actually believe these are quite conservative numbers,” Koeck added.

The new VNL—available in six configurations from day cab to 74-inch sleeper—is still in pre-production. Serial production is expected to begin around April, with the first customer deliveries in the third quarter.

“We say ‘all-new’ for a reason,” Koeck said. “Ninety percent is new. This platform was developed in North America for North American prerequisites by North American engineers. And we’re also building them here.”

A 10% efficiency gain for Volvo

To measure the 10% fuel savings, VTNA ran the new VNL against equipment with the same horsepower, rear-end

ratio, and transmission, and it ran the same routes with the same drivers. The OEM showed off an overhead side-byside comparison of the new VNL to the current model, which showed a stark shape contrast.

A lot of the fuel savings come from improved aerodynamics, including a wedge-shaped cab and sloped windshield. It also features a more aerodynamic roofline and improved Flow Below. Furthermore, Volvo engineers designed the truck to use the wind to enhance operations and keep the engine cool without sacrificing horsepower.

“The more you can keep the engine cool and utilize that wind, the less the fan turns on,” according to Bobby Compton, VTNA product market manager. “There’s still a lot of horsepower used when a fan comes on. And any time that horsepower is not being used to drive the tires, it’s not creating value for our customers.”

Heavy-duty aerodynamic improvements can significantly reduce fleet operating costs and emissions by decreasing the energy needed to move vehicles down the road, according to a Tractor Aerodynamics Confidence Report by the North American Council for Freight Efficiency. “Whatever powers the

vehicle—whether traditional diesel, natural gas, propane, hydrogen, electricity, or combinations of those as hybrid vehicles—the efficiency of converting energy into motion always depends heavily on aerodynamic design,” according to the 2020 NACFE study.

This new VNL is also VTNA’s platform for future power systems, including battery-electric, fuel-cell electric, and renewables, as well as hydrogen, which is part of VTNA’s three-path approach to decarbonization. Initially, the new VNL runs on diesel. The aerodynamic-focused redesign contributes about 70% of the fuel efficiency gains in the new VNL, according to Compton. The rest is under the hood.

The new VNL features the Volvo D13 engine and I-Shift transmission. Design enhancements to the D13 engine include a new wave piston with a shorter piston height and a longer connecting rod, smaller injector needle control valves, a variable vane oil pump, and improvements to the turbo compounding unit and turbocharger.

Volvo Trucks engineers enhanced the I-Shift to improve shift speeds up to 30%, which creates more efficiency. A truck transmission likely shifts gears thousands of times daily, Compton said.

Volvo Trucks North America’s all-new VNL 840 on the test track. Photo: Josh Fisher | FleetOwner

“If every time that transmission shifts gears, from eight to nine, first and second, whatever it may be—you go through neutral,” he explained. “Isn’t that just like idling? So, of course, we attacked it.”

Safety systems and connectivity

“At Volvo, safety will always be about saving lives. Always,” Compton said. “The reality is there’s a cost. There’s a cost to safety.”

Average heavy-duty truck crashes cost $148,000. VTNA said its safety technology could improve front-end collision risk reduction by 82% to 92% and improve side collisions by 92%. The OEM calculates this to $5,834 annually per truck, in addition to more than $8,000 in risk-reducing technology already on Volvo trucks.

The Volvo Active Driver Assist Plus with Pilot Assist showcased its active lane-centering capability in a successful demonstration on a three-mile test track. The new pedestrian detection feature alerts the driver when a person walking or on a bicycle might be in the truck’s path or in a blind spot, activating frontal automatic emergency braking if needed. Passive safety systems in the new Volvo VNL include the bonded and wrapped windshield. Along with its aerodynamic benefits, it improves visibility for drivers and reduces wind noise in the cab.

E-Call, a new safety feature, connects the driver to emergency services where cellular connectivity is available and provides precise location details. This automatically happens after a rollover crash or airbag deployment.

In addition to its environmental focus on efficiency, VTNA prioritizes the uptime of the new VNL. According to Chris Stadler, VTNA product market manager, the truck employs over-the-air updates to enhance performance. Moreover, Volvo Trucks has consolidated all its digital offerings, including insights from vehicle data, diagnostics, remote programming, fuel economy reports, safety reports, and location services,

into a centralized Volvo Connect platform. This all-in-one fleet management portal streamlines access to various digital services.

With the Volvo MyTruck app, drivers can access truck data remotely to see estimated remaining fuel range, DEF and coolant levels, and get notifications about potential issues such as light

malfunctions, low washer fluid levels, and other essential items so they can address them at rest breaks or in their pre-trip inspection. The MyTruck app also allows drivers to schedule specific days and times to start the climate control so that the cabin temperature is at their preferred level when they arrive at their truck to begin their workday. FO

Orange EV blooms in Kansas City

Electric terminal tractor OEM opens new factory to meet growing demands

by Josh Fisher

KANSAS CITY, Kansas—Almost 20 years ago, Kurt Neutgens failed to build an electric sports car company out of his garage. In January, the governor was here to congratulate him and Orange EV co-founder Wayne Mathisen on opening a 440,000-sq.-ft. factory so they can build thousands more electric yard trucks.

No company in the U.S. has built more electric Class 8 trucks than Orange EV, which sold its first terminal tractor to DHL Supply Chain in 2015. The OEM delivered its 1,000th tractor last November. Neutgens hopes to eventually double that output annually.

It’s a figure that no other heavy-duty truck maker comes close to. As of June, just 1,134 electric yard tractors were deployed in U.S. fleet operations, according to a Calstart 2024 report. Another 867 heavy-duty, over-the-road EVs are operating nationwide, the same report stated. But most of the more than 17,500 zero-emission supply chain vehicles operating today are light-duty cargo vans.

When companies look into decarbonizing fleet operations, a lot of the potential options aren’t readily available for OTR operations, Neutgens told FleetOwner as he sat across an unoccupied desk in a smells-like-new office steps from his new 400-yard-long assembly line that can build five trucks per shift.

Why electrify terminals?

Orange EV claims its yard dogs save fleets 90% on fuel and maintenance. Its trucks have no engine or transmission to service, no diesel regen cycle to maintain, and regenerative braking helps recharge the battery while saving wear and tear on brakes. Moderate use can save fleets up to $40,000 annually, while 24/7 operations can save up to $90,000 annually per EV truck.

Cold-chain fleet management company PLM Fleet is focusing more on zero-emission technology for reefer fleets. The company helps fleets meet capacity needs with equipment rental, leasing, and financing solutions. In its first fiscal year marketing Orange EV yard tractors, PLM has already placed 25 of the trucks in fleet customer operations.

“The yard truck category is absolutely the best match for our customers,” Barry Steel, VP of PLM leasing programs, told FleetOwner.

Orange EV said its terminal trucks have racked up more than 13 million miles and four million operating hours in the eight years since DHL added the first to its fleet. Over that time, the EVs reported 98% uptime, compared to the 75% industry average for diesel yard spotters. The first Orange EV DHL bought in 2015 is still operating today, and it now has 50 Orange EVs in operation at more than 30 locations.

Yard EV adoption booming

An ACT Research study from earlier this decade found that electric yard trucks have a better TCO than diesels.

A separate study by the North American Council for Freight Efficiency found that terminal tractors were “one of the best, if not the best, paths for heavy-duty tractor

fleets to learn about and implement a BEV in a fleet operation.”

PLM’s Steel noted that a few years ago, fleets still worried about range anxiety, charge times, performance, and uptime. “There were so many questions that people had, but I think all the questions have been sufficiently answered already,” he said. “You’re going to really start to see this adoption accelerate dramatically.”

The EVs need less maintenance, and Orange offers a 7.5-year battery warranty. Those first tractors sold in 2015 still operate with original battery packs, company officials told FleetOwner.

As Orange EV completes its move across the state line, it has more than 90 job openings at the large factory in Kansas. The governor’s office noted that the truck maker is investing more than $37 million in the area, creating 185 new jobs, all for a little-known essential piece of heavy equipment.

“We make a vehicle that is not often in the public eye,” Neutgens said during the ceremony. “They’re called very many names—because no one knows what everybody else calls them. Yard hostlers, yard trucks, goats, mules, switchers, donkeys, horses, stevedores. But the one we love most is the yard dog. It’s loyal. It goes out, and it gets it, and it brings it back every time.” FO

Orange EV electric terminal trucks are lined up outside its new headquarters. Photo: Orange EV

Suspensions & steering

Bendix

Designed as a driver assistance technology—not a driver replacement—the Sheppard Steering Assist System integrates with the Bendix Wingman Fusion collision mitigation system to help address unintended lane departures and help mitigate side-swipe crashes. According to Bendix, the steering assist system is built on the dependable Sheppard HD94 steering gear, which offers a quick steering ratio for fewer hand-wheel turns, ideal for large wheelbase vehicles.

The system uses existing hydraulic steering power and magnetic torque overlay technology to actuate the steering gear. This compact design uses minimal space and weight to ef ciently bring steering assist features to the market. The steering assist system works with the Wingman Fusion system, which may detect lane lines and vehicle position to deliver enhanced steering assist performance.

Cummins

Meritor’s FastSet No-Ream King Pin Kit is designed for most axle applications. By eliminating the need for reamers, presses, and the pressing-in of bushings during installation, FastSet

simpli es the aftermarket installation and repair of front steering axles. These kits are designed so that spiral bushings are easily installed by hand using the FastSet T-Handle tool, compatible with all FastSet spiral bushing sizes. According to the company, the grooved pattern on the kingpin not only facilitates straightforward installation but is designed to provide enhanced lubrication. The kingpin bushings require no reaming post-installation into the steering knuckle, resulting in cost, time, and labor savings. Available in various pin diameters and lengths, these kits are tailored to suit diverse application needs.

EMCO

EMCO’s 22.5K HD leaf springs are American-made for trailer OEMs, the aftermarket, and eets. EMCO uses state-of-the-art fatigue testing and nite element software for modeling. It also employs in-house salt spray and hardness testing to ensure product quality. Each 22.5K leaf spring is identi ed with a manufacturer’s lot code for full traceability and control. EMCO is ISO 9001:2015 certi ed, and its products are manufactured in robotic cells for quality and consistency. The company keeps a catalog of heavy-duty trailer leaf springs in stock, ready to ship immediately. It also keeps enough on hand to cover orders of various sizes, reducing customer wait time.

Gabriel North America

Gabriel’s FleetLine 85000 series shocks have a larger 1 ⅝ -inch bore

for improved durability and tensile. The 360-degree arc-welded end mount and forged solid steel eye rings are said to reduce end mount failure. A self-compensating piston seal provides consistent damping ability and reduced fade throughout the life of the shock. Super- nished chromed piston rods are corrosion-resistant, perform better, and last longer, according to Gabriel. Custom-blended high-temperature uid reduces friction and wear in extreme operating conditions where appli cable. Ten-stage valving equips drivers with maximum comfort and control, enhanced durability in harsh operating environments, and self-cleaning functionality for more extended performance, according to the company.

Hendrickson

Hendrickson’s Airtek Nxt, an integrated front air suspension and steer axle system, combines the Steertek Nxt steer axle and air suspension technology with a lightweight, integrated clamp group design. The company says its air suspension technology protects drivers from road irregularities and hazards. The integrated design provides additional ride quality, driver comfort, and roll stability compared to traditional two-leaf front spring suspensions. Airtek Nxt is up to 155 lb. lighter than comparable content to improve load capacity and help enhance fuel ef ciency. It was

Photo: Bendix

Photo: Cummins

Photo: EMCO

Photo: Hendrickson

Photo: Gabriel

designed with eet maintenance in mind using durable bushings that require no lubrication. Additionally, Steertek Nxt offers service intervals up to 100,000 miles, while its two-piece knuckle design eliminates the need to remove the kingpin to service the knuckle. The Airtek Nxt is available in capacities of 12,500 and 13,300 lb. on the Freightliner Cascadia and Western Star 57X.

Hutchens Industries

Hutchens 9700 Series trailer suspensions are versatile and can be assembled in single, tandem, or multi-axle con gurations with weight capacities from 12,000 to 25,000 lb. per axle. According to Hutchens, the 9700’s axle spacings, from 42 to 121 inches; wide variety of mounting heights; and the ability to adapt to round, square, or rectangular axles further enhances its versatility. All 9700 Series suspensions are available with fabricated or cast steel spring hangers. These hangers come in various styles designed to t numerous mounting requirements.

Link Manufacturing

Link says its family of auxiliary suspensions provides convenience and performance advantages for up tters, body builders, OEMs, and eets. Link’s steerable and non-steerable auxiliary axles are adaptable and can be tailored to

enhance productivity. Link’s 8K, 10K, 13.5K, and 20K steerable, and 13K, 17K, and 20K non-steerable suspensions offer various installation options and features, allowing eets to meet diverse requirements. The auxiliary axles use Link’s patented Swift Mount Brackets, reducing installation time by up to 20%. The company says its steerable auxiliary suspensions can enhance performance, strength, and uptime for work trucks and HD vocational vehicles. Its non-steerable 20K lift axle, for tag or pusher positions, incorporates patented features for easier installation, increased stability, and durable performance. According to Link, its auxiliary suspensions can also reduce downtime, leading to a lower overall cost of ownership. The auxiliary suspensions can help ensure compliance and maximize each vehicle’s load-carrying capacity, all while using stock chassis.

SAF-Holland

SAF-Holland dubs its Neway ADZ “the industry’s lightest weight vocational drive axle air-ride suspension.” Available in 23,000 to 26,000 lb. per axle capacity models with an 8.5-15 inch ride height range, it can be engineered in single, tandem, or tridem axle con gurations. According to the company, it is durable enough for heavy-duty and severe-duty vocational environments but light enough for over-the-road applications. The company says its design increases durability and stability while optimizing weight savings to increase payload and operating ef ciency. Using a proprietary, lightweight, one-piece integral lower module, the ADZ provides improved

roll stability and handling characteristics with linear roll-rate control technology, the company said. In addition, it’s compatible with drum or air disc brakes.

Stemco

The QwikTie tie rod assembly from Stemco was designed to increase simplicity and safety. According to the company, this highly adaptable solution is engineered to accommodate more than 80% of the straight tie rod lengths in the market with only two part numbers. From 57⅜ to 73⅞ inches, QwikTie ensures a precise t from grease zerk to zerk, featuring an even clamping force that prolongs alignment, reducing stress on other suspension components. Plus, Stemco said its intuitive color attributes lend to quicker identi cation and a more accurate installation.

ZF

Sachs claims its shocks are crafted to offer reliable, long-lasting durability while prioritizing safety and comfort. According to the company, its shocks offer longevity and bolster safety measures. With proper handling and wheel rebound, drivers gain control over their vehicles, resulting in predictable stopping, maneuvering, and acceleration. Furthermore, Sachs said its shocks ensure a smooth and comfortable ride for the vehicle operator and their cargo. Its shock absorbers are tailored for commercial vehicles, designed to enhance handling, safety, and efficiency and meet OE manufacturing speci cations. FO

Photo: Hutchens

Photo: Link Manufacturing

Photo: SAF-Holland

Photo: Stemco

Photo: ZF

ON THE ROAD

Artificial intelligence o ers optimization and e ciency opportunities not previously possible, and for trucking companies, that can be a distinct competitive advantage

by Seth Skydel

In the trucking, transportation, and logistics industries, artificial intelligence is still an enigma to some.

That’s not so much because it’s a puzzling concept but because it remains unclear how it can benefit your business. However, it’s becoming increasingly clear that AI-driven technology can support your needs and provide valuable capabilities.

Jean-Sebastien Bouchard, EVP of sales and co-founder of Isaac Instruments, has a concise way of describing AI that immediately makes sense: “AI is predictive. It takes a large amount of data, more information than any person can be expected to manage, and turns it into an actionable tool.”

Trucking companies generate more data per truck daily than one person can read and process, Bouchard noted. Feeding that data into an AI model and training it to learn patterns continually can generate a predictive capability about drivers, operations, and trucks that would otherwise take much longer—or not even be possible.

Bouchard also described “blind spots” caused by the inability to “connect the dots” in a massive amount of data and use it to predict risky behaviors, crashes, claims, and vehicle issues. “Those are the things you can’t manage without the capability of AI models,” he explained. “What AI also brings is time savings because the more information we gather, the more people we need to manage it.”

Remarkable results

Ben Wiesen, president of freight management software provider Carrier Logistics Inc., noted that AI is being rapidly deployed throughout the supply chain to achieve remarkable results.

“Advanced AI-powered solutions are making a real difference in how trucking companies operate,” Wiesen said. “Complex decisions are now made by software systems that are available 24/7, which is a good thing for an industry that literally does work around the clock. Operations planning, which was previously

“Imagine a future where AI seamlessly connects networks, automates responses, empowers efficient asset utilization, and frees humans from repetitive tasks.”

– Doug Schrier, McLeod Software

exclusively done by dispatchers, has transitioned to optimization largely performed by computers.”

AI technology supports complex operations so trucking companies can efficiently service their customers while reducing service failures and lowering costs. As an example, Wiesen pointed to dispatch and routing decisions.

“Due to the time constraints involved in moving freight hundreds of miles overnight, geographical rules and fixedroute solutions were often used to keep things moving,” Wiesen said. “With an AI-driven route optimization module, however, CLI has enabled fleets to generate highly optimized P&D routes for irregular-route delivery fleets without causing any delays in the movement of freight through the network.”

Using the module, fleets can quickly determine which deliveries should be loaded on each truck and in what order. It creates precise route plans considering specialty equipment, appointment time windows, predicted traffic, and commercial vehicle routing.

“Deploying computerized route optimization significantly reduces the time to generate P&D routes each day because the system can route an entire terminal’s deliveries in just minutes, allowing deliveries to be loaded on trailers earlier,” Wiesen explained. “Better planning yields better visibility back to shippers, who can be informed earlier of ETAs or potential disruptions.”

“Historically, many hours of productivity have been lost by drivers and dockworkers who have been waiting for their next assignments,” Wiesen continued. “AI can make sure that dispatch and warehouse assignments are provided immediately so labor resources can be fully utilized.”

“And in an employment market where finding, training, and retaining drivers and forklift operators is challenging, the ability to do more without adding headcount can be the difference between leaving freight behind and handling more business,” he added.

In addition, AI automatically extracts data from scanned documents. Data entry and clerical hours have long been considered necessary for trucking operations. AI is replacing those costs.

CLI also uses AI to identify at-risk accounts, conserve resources, and reduce bad debt. The company’s Automated A/R Risk Scores solution looks at accounts receivable records much like an experienced A/R manager would, focusing on factors such as account age, payment history, open balance trends, and activity for each customer.

“The system does this automatically, and it can focus on all accounts all the time,” Wiesen said. “Even small-balance accounts with a potentially elevated collections risk that might otherwise have slipped through the cracks are brought to management’s attention before they turn into a collections problem.”

Transformative power

At McLeod Software, Doug Schrier, VP of growth and special projects, noted that trucking has experienced the transformative power of AI across back-office operations and the driver’s experience. The exponential growth of computing power is now poised to amplify AI’s impact on the supply chain significantly.

“Imagine a future where AI seamlessly connects networks, automates responses, empowers efficient asset utilization, and frees humans from repetitive tasks,” Schrier said. “This transformed

landscape is closer than ever, promising significant opportunities within the near future. In today’s competitive landscape, technology like AI isn’t just a nice-tohave; it’s a game-changer.”

The power of AI goes beyond mere efficiency. In the trucking industry, Schrier related, relationships reign supreme, and AI is not here to replace those connections but to make them stronger. “Imagine AI-powered tools that personalize interactions, analyze customer preferences, and anticipate needs, allowing you to deliver an exceptional and customized experience for each customer,” he said.

McLeod expects to see AI in freight management technology in some key areas, according to Schrier:

• Dynamic route optimization: Realtime traffic, weather, and demand data will constantly adjust delivery routes. This will help ensure timely deliveries and increase utilization, which improves the efficiency of the supply chain and fleets. By integrating advanced analytical tools, decision support models, and AI, trucking companies will have opportunities to enhance planning, optimize performance, and improve execution.

• AI automatic response: Generative AI is poised to revolutionize communication within trucking and brokerage operations by automating responses to common requests. Imagine drivers receiving immediate answers to route inquiries or resolving simple issues without human intervention. Brokers and carriers could quote customer requests for shipment in mere seconds, tailoring responses based on past data and market trends. This eliminates tedious administrative tasks, frees up human expertise for complex situations, and streamlines operations for both truckers and brokers.

Complex interpretations

“AI is being used in many ways to change how we optimize and manage trucking and logistics companies,” according to Craig Vanderheide, director of product management at Intangles, a predictive

analytics company focused on transportation. “It is being used to solve many complex problems that historically have relied on longstanding experience and interpretation of real-world scenarios but are now able to be driven by complex interpretations of real-time data.”

Vanderheide noted that AI can process massive amounts of data in real-time and make intelligent decisions even when faced with new scenarios it has never encountered before. It can learn and adapt over time, improving its performance and efficiency as well as responding to new scenarios. With AI, fleets can foresee trends and likely outcomes.

“AI is just starting to transition into the growth stage of adoption in the trucking and logistics industry,” Vanderheide said. “Today, we see many machine-learning techniques being used to help optimize scheduling, predict costs, conduct predictive maintenance, and observe activities that happen on the road.”

The number of potential AI applications is limitless, according to Vanderheide. Potential opportunities include:

• Integrated virtual assistants: Highly sophisticated transportation assistants can work with all available data within a fleet to help guide and support planners, driver managers, and maintenance personnel using natural language and learning each user’s behaviors to recommend the most impactful workflows.

• Localized models: Essentially, this is the ability to own and train your own AI models to understand the unique nuances of your own business and operations without concern or risk of losing a competitive advantage to other fleets. The AI can make unique and customized recommendations based on what each fleet values to help it achieve intended outcomes.

• In-cab: AI presents an opportunity to improve driver safety and streamline other activities that are currently a part of a driver’s daily routine but can distract drivers from their core job. For example, AI is well suited to simplify pre-trip inspections, HOS log management, improve delivery/ pickups, and enhance the experience of driving down the road. Regarding safety, AI can detect dangerous driving conditions, and proper predictive maintenance tools can help ensure drivers aren’t stranded on the side of the road or delayed from getting home to see their families.

“We are also starting to see some basic forms of generative AI being used to help assist customers in finding information, and many will experience interaction with some level of AI when seeking support,” Vanderheide said. “AI presents an incredible opportunity for us to get deeper access to information for decision making that up until recently was just not possible.”

Carrier Logistics uses its automated solution to identify at-risk accounts, conserve resources, and reduce bad debt. Photo: Carrier Logistics

Avoiding biases

BeyondTrucks CEO Hans Galland pointed out that some of the most advanced AI applications include optimization, where computers can evaluate various outcomes of a series of decisions faster, pick the best sequence, incorporate probabilities, and avoid behavioral biases.

“For example, take how a TMS computes driver settlement or invoice charges,” Galland related. “Traditional software needs to write mathematical formulas to calculate driver pay through predetermined rules developed by the TMS software developer.”

“If a new customer has a novel pay scheme, the TMS provider needs to write a piece of new code to accommodate it,” he continued. “AI systems, however, promise to either generate the code through natural language understanding—or simply bypass the customized code altogether to calculate the correct math.”

“Applications for optimization with AI exist in load planning as well,” he added. “That’s especially the case where decisions are sequential and subject to human bias because load planners or dispatchers make many critical decisions in the heat of the moment without systematic, quantitative analysis.”

According to Galland, AI has the potential to transform a modern trucking operation in a number of ways, including:

• Drivers: safety, monitoring, coaching, and assistance using dashcams and other devices

• Dispatching: load optimization, route optimization, dispatch automation, driver preferences

• Customer service: visibility, ETA estimates, customer communications

• Back office: digitized paperwork using optical character recognition, rate tables, accounting reconciliation, cash-transaction matching

• Management: advanced data analytics for decision-making and visibility The value these various applications bring is significant, Galland noted. “That can include cost savings, better decisions by augmenting human decision making with algorithms incorporating larger data sets and probabilities and avoiding human biases, reducing risk and improving safety by avoiding errors by flagging risky behaviors, incorrect decisions, or unusual outcomes,” he said.

Addressing intricacies

Artificial decision intelligence, an AI decision-making tool, can make dispatching operations more efficient and help drive profitability, pointed out logistics- and freight-focused Optimal Dynamics in an online post. ADI is particularly applicable in dispatching decisions because of the intricacies of the dispatch manager’s role, which includes managing load assignment decisions,

driver schedules, and preferences to maximize profits while working under tight time constraints.

Decision intelligence platforms give dispatchers a critical tool to help them navigate the daily complexities of their jobs, the company related. These platforms factor in numerous dynamic variables, handle thousands of calculations, and assess hundreds of possible simulated outcomes. If dispatchers dealt with all of this independently, not only would a single driver/load pairing iteration take up valuable time, but it would also need to be repeated until there were sufficient network scenarios to compare and consider.

Since each load assignment decision impacts the next, the company explained, this quickly becomes too complex for even the most experienced dispatchers to realistically handle. Dispatchers must also adapt to real-time changes. They may have known the optimal decision initially, but it may differ if a load is canceled. If this is the case, the problem must be reworked with the latest information.

Core value

At its core, Mike Hamill, SVP of strategy for Trimble Transportation, pointed out that AI is poised to have a profound impact on trucking operations by breaking down data silos. “Fleet data can come from many systems and devices, he said. “Integrating that data into a platform where managers have a holistic view of operations is complex.”

“AI-driven transportation technology can create efficiency and productivity with solutions that can give clear guidance on everything from complex route optimization to pricing and bidding to driver performance,” Hamill said.

The winners in AI, Hamill added, will take over a portion of the relationship management and mundane, repetitive tasks so individuals can be more productive, build deeper working relationships, and add more value while meeting their company’s operational goals. FO

Artificial decision intelligence can make dispatching operations more efficient and help drive profitability. Photo: Isaac Instruments

TECHNOLOGY BRIEFS

Kodiak launches AV truckport at Ryder facility in Texas

Kodiak Robotics and Ryder have been running freight out of an autonomous truckport in Houston since December, the two companies announced this year. Located at an existing Ryder fleet maintenance facility, self-driving trucks can “launch and land” at the truckport, which serves freight routes running from Houston to Dallas and Oklahoma City.

route later this year, using the Ryder facility as a launch point.

“Ryder’s industry-leading fleet services and vast footprint of service locations makes it an ideal partner as we scale autonomous trucks,” said Don Burnette, founder and CEO of Kodiak. “Expanding our network of truckports with Ryder will enable us to operate autonomous trucks at scale with our customers."

Study: Fleets benefit from digitizing LTL shipments

More less-than-truckload fleets are benefiting from digitized shipping records that allow them to provide better visibility through the supply chain, according to a new case study by the National Motor Freight Traffic Association and third-party logistics provider C.H. Robinson. The case study features C.H. Robinson’s eBOL, developed using the standards established by NMFTA’s Digital LTL Council.

Bestpass integrates toll data with Geotab

Toll management solution provider Bestpass is integrating its commercial vehicle data and reporting tools with the Geotab telematics ecosystem, the companies announced on Feb. 7. The integration will provide fleets and owner-operators with new insight into how to manage and reduce toll expenses more effectively, according to Bestpass.

Bestpass developed its Toll Genius data reporting system to integrate with commercial fleet telematics providers, such as Geotab, to synchronize and share toll and telematics data through a single interface, according to David Long, head of product at Bestpass. Geotab provides telematics data, such as vehicle and asset tracking, to more than 50,000 customers in 160 countries.

This partnership looks to strengthen Kodiak’s fleet operation offerings. Later this year, the AV company plans to begin driver-out operations in Texas, partnering with major FleetOwner 500 carriers such as Werner Enterprises and C.R. England.

“We know that we can’t just build the technology and drop it over the fence,” Andreas Wendel, Kodiak’s chief technology officer, told FleetOwner. “We need to bring them along. And that’s what we’ve done from the beginning through our partner deployment program.”

Last year, Kodiak partnered with Pilot Travel Centers to open an autonomous truckport near Atlanta. Kodiak trucks currently operate with safety drivers on all routes, including the Houston-Dallas and Houston-Oklahoma City lanes. Kodiak plans to begin its first humanless operations along its Dallas-Houston

The Digital LTL Council of NMFTA released its first set of LTL eBOL standards in late 2021, according to the council’s website. The council aims to “facilitate collaboration, automation, standardization, and digitalization across all LTL industry participants.”

In a recent press release about the case study, Greg West, VP of LTL at C.H. Robinson, explained why it’s vital for the LTL industry to digitize.

“While there are fewer carriers in the LTL universe and the top 25 handle over 90% of the market, the complexity of moving LTL freight means that digitization in this part of the logistics industry has been more challenging than truckload,” West said. “With truckload freight, there’s generally one origin and one destination, and a customer has exclusive use of the trailer. With LTL, you can have up to 30 customers’ freight on a trailer, with 30 destinations, and 30 sets of paperwork. That makes it so valuable to have a common eBOL everyone can use.”

Bestpass customers can match Geotab vehicle data and GPS locations with toll charges received from their Bestpass account via the MyGeotab interface. Reports are made if a discrepancy is detected between the GPS location of a vehicle and the toll it received. This feature makes it easier for customers to identify and investigate the issue, dispute an inaccurate toll charge or violation, and reduce the risk of disputes over toll charges with drivers and customers.

Additionally, the integration has a new toll activity reporting feature that shows a high-level heat map that allows fleets to identify hot spots for toll spending.

“This information can help fleets leverage the toll data to optimize routes and avoid costly tolls,” Long said. “Fleets and owner-operators using Bestpass can also monitor all toll transactions and expenses in real-time, easily ensure necessary transponder coverage across your fleet, identify fraudulent activity, and more through their account.” FO

The Houston truckport at a Ryder maintenance facility will serve autonomous trucking operations on lanes extending to Dallas and Oklahoma City.

Photo: Kodiak Robotics

Phenomenal contacts

A frequent contributor at events, Reardon is an NPTC ‘rising star’

A CERTIFIED Transportation Professional program graduate from the Class of 2021, Ed Reardon, CTP, senior general manager for Fleet Safety and Compliance, CF Logistics, began participation in NPTC just under three years ago. Since then, he has become one of the council’s “rising star” volunteers as a frequent speaker and expert fleet management presenter at NPTC’s Annual Conference, National Safety Conference, and Webcast Series. He was recently elected to the NPTC Board of Directors.

“I knew about NPTC and the CTP program through a former colleague who gave me his CTP Resource Study Guides,” Reardon stated. “I got involved in NPTC as part of a ‘deal’ with my employer. When our two companies merged, I requested that the new company become a member of the council and I be allowed to go through the program.”

As soon as CF Logistics joined NPTC, Reardon enrolled in the CTP Exam Prep Workshop. “The prep course was exceptionally thorough and really helped me focus. I cracked the books for several weeks, and fortunately, I passed. It was a great experience and very challenging, to say the least, but I would not want to do it again.”

A military veteran, Reardon served in the U.S. Coast Guard for several years with honors and commendations.

“My dad was in trucking all his life,” Reardon said. “Before retiring as a terminal manager, he offered me a position working nights loading trucks. After a while, I switched to long-haul truck driving.”

In his 22 years as an OTR professional, Reardon drove around 2.5 million miles without an accident or driving violation. Later, he and his father owned a hauling business, providing

home deliveries for Sears and Roebuck. In addition, Reardon has owned a landscaping business for nine years.

“I eventually decided that fleet management was where I wanted to be,” Reardon said. He maintains a valid Class A CDL license and earned a Certified Smith System Instructor Certificate. These credentials and his exceptional record as a driver qualified him as a driver trainer/outside contractor helping companies build teams of professional drivers. Reardon was responsible for putting into service the first 37 drivers working for the private fleet of a major grocery supermarket chain.

Reardon has been in his current position for seven years. His responsibilities include overseeing the safety and compliance of a private fleet consisting of 227 tractors and reefer trailers and 88 drivers. Involvement with NPTC has brought many benefits to the fleet’s operation. “Our return on investment has been unbelievable—more than tenfold in a few years,” Reardon said.

“The contacts I have met being a CTP are nothing short of phenomenal. Engagement with the NPTC culture means going far beyond your own four walls,” he said. “I have found being a frequent speaker is a very rewarding learning experience in and of itself. I get great takeaway insights listening to other presenters and members of the audience. You really must be on your game to present at an NPTC event.”

Reardon took advantage of services provided by NPTC General Counsel Rick Schweitzer when his employer was going through the merger process. “Rick laid out a plan of action for us to follow, and it worked perfectly. I can’t stress enough the value Rick brings to the NPTC membership. I faithfully follow his monthly Washington Report to

“The contacts I have met being a CTP are nothing short of phenomenal. Engagement with the NPTC culture means going far beyond your own four walls.”

stay on top of legislative and regulatory changes going on in the industry.”

“The council’s annual Benchmarking Survey Report is a tremendous resource which I use constantly,” Reardon said. “The information helps validate, verify, or set a new course of correction. I also used other resources of NPTC to set up a new safety program for our company fleet almost from scratch.”

“Getting active in NPTC provides a steady flow of critical information that I use to continuously improve our private fleet,” he continued. “In my 45 years in the trucking industry, the council is the best-value organization I’ve ever known,” he said. FO

Gary Petty | gpetty@nptc.org

Gary Petty has more than 30 years of experience as CEO of national trade associations in the trucking industry. He has been the president and CEO of the National Private Truck Council since 2001.

Ed Reardon, CF Logistics Photo: NPTC

by Gary Petty

Bullish on mobile fleet maintenance

Cox leverages technology and technicians to grow and help clients succeed

by Seth Skydel

For Cox Automotive, all indicators were pointing in the same direction. The Indianapolis-based subsidiary of Cox Enterprises recognized that the growth of e-commerce and what it called “an on-demand economy offering realtime fulfillment of goods and services” would result in increased miles traveled per vehicle and more service and maintenance needs.

“It was clear that mobile fleet services would be in greater demand,” said Drew Kortyna, a 30-year veteran of the mobile fleet service market, who is now senior director of operations at Fleet Services by Cox Automotive. “We’ve seen our mobile fleet service business more than double in the last three years, and in the next few years, it will double again.

“We’re not slowing down, so to grow our mobile fleet service business, we need to add more technicians,” he continued. “The output of our more than 1,400 current mobile techs is about as high as can be expected, so we have to increase our technician count to meet our targets.”

While facing a technician shortage challenge felt across the industry, Cox Automotive is finding success. “Technicians are our revenue stream. We have a highly skilled recruiting team ... and we offer great benefits that make it attractive to work here,” Kortyna said.

Cox Automotive is also heavily investing in its next generation of technicians. The company’s FleeTec Academy offers qualified applicants an all-expenses paid, four-week program at its facility in Indianapolis. After completing the comprehensive program, technicians perform preventive maintenance and light repairs. Following a two-year commitment at Cox, the technicians can keep a company-provided $20,000 tool kit.

Fleet Services by Cox Automotive now fields more than 850 mobile service

trucks that provide routine maintenance and repairs at customer locations and for emergency service.

“Our focus for vehicles in our mobile service fleet is on overall performance and upfits with up-to-date tooling and technology so technicians are prepared to handle any task,” Kortyna said. “Uniformity across our fleet is also a goal. But at the same time, we must address current chassis availability issues and the equipment we gain when we make acquisitions.”

“The decision to rebrand or replace a vehicle we acquire is based on a unit’s age and condition,” Kortyna continued. “In addition, we’re finding that the supply of new vehicles is improving, and as part of Cox Enterprises, we’re leveraging long-term relationships with OEMs to get the equipment we need.”

Cox Automotive’s fleet is a mix of Ford F-450 and Chevrolet chassis and Ram ProMaster vans. Bodies and service trailers are supplied by Morgan Truck Body and Stellar Truck and Trailer, and the company also has Warner Bodies and Knapheide models.

The Vanair Air N Arc All-In-One Power Systems is among the latest tools and technology on Cox Automotive mobile service trucks. “The Air N Arc system has become the heartbeat of our mobile service trucks because it combines a welder, generator, air compressor, battery booster, and battery charger in a

About the Fleet

Cox Automotive

Parent company:

Cox Enterprises

FO500 Private Fleet: No. 93

HQ: Atlanta

single mobile workstation,” Kortyna said. The company also put the Vanair Electrified Power Equipment system on a group of ProMaster vans used for light-duty vehicle service work. Eliment lithium-iron-phosphate batteries power the self-contained zero-emissions system.

“We’re considering the EPEQ system for possible future electric vehicles and to address legislation in states requiring zero-emissions equipment in fleets,” Kortyna said. “Overall, working with Vanair helps streamline the process of upfitting and outfitting our trucks.”

Cox Automotive is firmly focused on bolstering its mobile fleet services capabilities, Kortyna noted.

“As more fleets realize that mobile services can offer lower total costs, faster turnaround time for service, and not require a large capital investment in maintenance operations, our reputation as an outstanding provider is growing,” he added. “To support our efforts, we’re zeroed in on our fleet as essential to making us the most comprehensive fleet services resource in the industry.” FO

Photo: Cox Fleet Services

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WORD

Fleet celebrates 100 years of putting people first

AA. Duie Pyle has big plans for its centennial. The FleetOwner 500 fleet isn’t

just celebrating, it’s expanding. by Jade Brasher

. Duie Pyle, a transportation and logistics services company, turns 100 this year. The company, family owned and operated since 1924, kicked off its centennial year with the opening of a new facility in Maine. John Luciani, A. Duie Pyle COO, said it would be the rst of many this year.

Pyle (No. 79 on the FleetOwner 500: For-Hire) currently owns 4.4 million square feet of warehouse space, and opening another ve facilities will add thousands to Pyle’s total footprint by year’s end. The company has grown through the years, especially since 1994.

“From 1924 to 1994, we were a one-terminal operation,” Luciani told FleetOwner. “From ’94 to where we are today, we’ve opened 20 additional service centers, and we’ve got plans to continue to grow further.”

Pyle will open one terminal previously leased to Yellow Corp. along with ve terminals purchased through auction, bringing the total number of its facilities to 34 in 2024.

Investing in growth

Luciani joined A. Duie Pyle in 2010 when the company had 13 LTL service centers. He attributes the company’s growth to “competitive opportunity.”

Pyle leadership has also contributed to its growth, he said.

“What’s driven our growth is ... our longtime service performance and requests from customers looking to have a better-quality service,” Luciani told FleetOwner.

“We’ve had the same family ownership since April 1, 1924,” Luciani said. “They always put their money where their mouth is and pledge the pro ts of the business back into the business.”

The company’s forward-thinking leadership offers career growth opportunities to the 4,000 employees who make up “Pyle’s people.”

“If the people believe in what we’re doing, and they trust what we’re doing ... it’s a good recipe for long-term success,” Luciani said.

Celebrating Pyle’s people

To celebrate, Pyle has planned multiple events to appreciate its employees, customers, and select vendors. At these events, Pyle will treat its full-time, parttime, and retired employees to a dinner. Among the gifts employees will receive is a special-edition 1918 International model truck—the truck owned by the founder when Pyle began.

“It’s a people business. Whether it’s

somebody loading the truck, unloading the truck, or doing the nal-mile delivery, it’s always going to be a people business,” Luciani said. “We want to make sure that we take care of our Pyle people because it’s more than just a tagline on our trucks. Our logo, ‘Pyle People Deliver’ ... that’s our culture.” FO

▲ From left: Peter Latta (3rd generation), Billy Latta, Jack Latta, and Frank Granieri (4th generation).

◀ Jim and Eleanor Latta, 1993

▲ A. Duie Pyle, Coatesville, Pennsylvania, 1940

▲ Jim Latta at Lukens Mill, 1946

NPTC’s Annual Conference and Exhibition is the marquee national private truck fleet event of the year! With 1,300+ attendees and 180+ exhibitors, this is an event you won’t want to miss. The Annual Conference features:

INFORMATION: General sessions featuring professional leadership and Driver Hall of Fame recognition award ceremonies; Certified Transportation Professional Class of 2024 graduation; industry benchmarking insights; and the latest legislative and regulatory affairs update.

EXHIBITS: A world-class exhibit hall packed with more than 180 companies offering products, resources and solutions that will increase the effectiveness of your private fleet.

NETWORKING: Unparalleled peer-to-peer interaction forged in an environment of trust, confidentiality and non-disclosure.

EDUCATION: More than 75 top fleet practitioners will serve as speakers and panelists at 20+ workshops showcasing the latest, most innovative and best ideas in private fleet management.

BEST PRACTICES: More than 20 best practices breakfast roundtable sessions in which private fleet professionals share in a culture of trust and confidentiality – challenges and opportunities.

RECOGNITION: Honoring the private fleet community’s best and brightest practitioners for achievements in safety, leadership, and certification, and for their years of innovative leadership and contributions to the industry.

SOCIAL: Meals, events, and activities that create an engaged earning atmosphere.

LOCATION: A great location with numerous flight options from anywhere in the country.