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The trucking market is heating up. Supply is shrinking, M&A is about to surge and rates are rising so much that some shippers are thinking about rail. In today’s email, we’re looking at the market dynamics from all angles.
Plus, tips from a trucking COO to squeeze the most out of your gas tank. His fleet’s top drivers regularly get 12.3 mpg. And you need that kind of mileage when prices look like this … 😳
Then, coming up Thursday, a TMS CEO shares the one key question you need to ask when mulling a tech investment.
⬆️ $5.313
AVG. COST OF DIESEL PER GALLON IN U.S. AS OF 07/27, DOWN 0.179¢
ROADSIDE READS
Math isn’t mathing. Trucking firms are paying more for insurance. But crash rates have come down by double digits. What gives?
FedEx’s next era. In an in-depth interview with Fortune, FedEx CEO Raj Subramaniam shares everything from the company’s transformation, testing autonomous trucks, automated loading/unloading and his path to CEO.
A handy-dandy tool. Truckmargin.com has two free (!) tools for owner-operators to help figure out true costs per mile, whether a load is worth it and the break-even rate you need to cover all expenses.
Planning for the future. With volatility on the rise in trucking, leaders can’t rely on “business as usual.” This Deloitte report lays out five strategies fleet executives should put on their radar.
Call for nominees. Nominations are open for the 16th annual Influential Woman in Trucking Award. Know someone who deserves this recognition? Submit here by Aug. 31.
Sponsored by Enterprise Fleet Management
The right fleet financing does more than set your payment
Fleet financing is more than how you pay for vehicles. It shapes your ROI, your cash flow and your total cost of ownership. Enterprise Fleet Management's new white paper walks through the options worth weighing, including:
Open-end leasing: Best for high-mileage fleets with no mileage limitations
Closed-end leasing: A fixed payment with less flexibility to end early
Outright purchasing: Often the right call for low-mileage or specialized vehicles
A fleet management partner can help match the right structure to your business goals.
INDUSTRY VOICES
Sticker shock at the pump? These tips could help
On the roller-coaster ride of oil prices, we've been up over $100 a barrel, then under $90 in the span of just a few days. Fleets don’t have much control over what they pay for a gallon of diesel, and these swings make it extra hard to plan, but there are some strategies to maximize mpg.
Daryl Bear, COO and lead engineer of Mesilla Valley Transportation Solutions, outlines a few here. Plus, he says, “don’t discount the role of the driver in helping your fleet get more miles from a gallon of fuel.”
Take it from a pro: his fleet’s top drivers regularly get 12.3 mpg.
Why this matters: Fuel is one of the few costs a fleet can actually influence. Small changes in driver behavior add up quickly across a fleet. With oil prices where they are, the savings from even a modest mpg improvement can make a difference. (CCJ Digital)
YOUR TAKE
Do you coach your drivers on fuel economy?
FAST LANE
M&A MOMENTUM: Trucking dealmaking predicted to become busy soon
FREIGHT MODE: Railroad execs say shippers moving cargo from truck to rail
COMING UP: FMCSA to release proposed rule for driverless trucks in August
FRESH BATCH: Trump reimposes tariffs on 60 countries to replace expiring duties
DECISION TIME: Small business owners weigh in on how to handle higher trucking rates
STAGED FRAUD: New bill would make it a federal crime to engineer truck crash
SEEN & HEARD
Don't discard all the things that you would have done before you got into trucking. Find a way to incorporate it into your work in a small way, even if it's only for just a few minutes out of the day.”
Life in the trucking industry or on the road can take a toll on your mental health. It’s one of the reasons Christi recommends building in just a few minutes for activities you love—whether it’s reading a book, meditating or doing a quick workout outside (or inside!) the truck. She also shares her experience as a female trucker and the role of the African American Women Trucking Association in supporting the trucking community. (That’s Delivered)
ROAD REPORT
MARKET
Knight-Swift CEO: ‘This cycle feels a bit different’
In the recent past, trucking has boomed when demand was up. Like during the early pandemic days, when stores needed deliveries to restock the excessive amounts of toilet paper and flour we were consuming.
But this time around, it’s not a consumer-demand boost that’s driving the market, according to Knight-Swift CEO Adam Miller. “This cycle feels a bit different because it’s more supply-driven than demand,” Miller said.
Why this matters: Textbook Econ 101 is playing out in the real world. The supply of trucks in the market is shrinking, and that means prices are on the rise. Also up: tender rejection rates. It’s a powerful moment when carriers that survived the past few years’ capacity purge have the luxury of saying no to a load. (Trucking Dive)
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The Inside Lane is curated and written by Shefali Kapadia, and edited by Bianca Prieto.
