Trucking news and briefs for Thursday, Aug. 15, 2024:
Trucking conditions remained slightly positive in June
Market conditions for trucking companies stayed in positive territory in June, but weakened from May, according to FTR’s monthly Trucking Conditions Index (TCI).
The TCI fell to 0.95 in June from May’s 2.24 reading, but the firm noted an improvement in core freight dynamics for fleets during the month. Higher financing costs and a slowing of diesel price decreases were substantial offsets, FTR said.
FTR expects general improvement in market conditions for carriers, but the TCI could see both positive and negative readings in the coming months before the index turns consistently positive by the end of this year, according to FTR’s current forecast.
“Today’s market might feel as weak as it has been, but we continue to see a growing foundation for a recovery in financial conditions for trucking companies,” said Avery Vise, FTR’s vice president of trucking. “Strengthening capacity utilization sets the stage for firmer freight rates starting late this year and accelerating somewhat in 2025. Although nothing approaching the likes of 2021 is on the horizon, carriers should be seeing considerably more favorable conditions by next spring.”
Southwest Supply Chain Solutions acquired by RK Logistics
RK Logistics Group has acquired Southwest Supply Chain Solutions, a provider of warehousing and expedited transportation services based in Tempe, Arizona.
Under the agreement, RK takes over a 79,000 square foot warehouse in Tempe. This includes Southwest’s freight handling and warehousing contracts, as well as a modest fleet of trucks and trailers. Southwest specialized in cross-docking, inventory management and expedited transportation, and served dozens of local businesses in the greater Phoenix area.
"This acquisition provides new resources to support semiconductor clients we serve today in California's Silicon Valley as they and others expand into Arizona, which is becoming the next major semiconductor manufacturing region," said Joe MacLean, chairman and chief executive officer of RK Logistics Group. "We are bringing 30 years of expertise and experience in semiconductor logistics and high-touch expedited transportation solutions to one of the most active growth markets in the nation."
Rebranded as RK Logistics, the new Tempe location is fully climate-controlled, has 12 dock doors for cross-docking freight, as well as a large truck parking area. The site will provide the complete portfolio of RK's services available at the company's other locations. These include managing inbound freight, consolidation and distribution, general warehousing, pick and pack, inventory and order management, labeling and fulfillment, packing and shipping. Transportation services include on-demand expedited, white glove and lift-gate service for same-day or next day delivery, as well as scheduled volume truckload and LTL shipments. RK also provides freight brokerage.
RK's Tempe operation also will offer its purpose-designed, fast-response service program developed exclusively for semiconductor clients. Refined over decades of experience, the program includes temperature-controlled inventory management, order pick-and-pack and fulfillment, specialized crating, and "hot shot" dedicated trucking of parts and components to support manufacturing lines on a just-in-time basis.
RK Logistics, headquartered in California's Silicon Valley, was founded over 30 years ago as a third-party logistics provider for high-tech, semiconductor and vehicle manufacturing firms in Northern California. It has supported semiconductor and EV manufacturing, specifically lithium-ion battery warehousing and logistics, since 2014, and this year, expects to surpass 5 billion battery units handled through its warehousing facilities.
PFG acquires Florida-based foodservice distributor
Performance Food Group Company (PFG) this week announced that it has entered into a definitive agreement to acquire Cheney Bros. Inc., an independent broadline foodservice distributor based in Riviera Beach, Florida, and owned by the Cheney family and Clayton Dubilier & Rice. PFG will acquire Cheney Brothers for $2.1 billion in cash.
PFG said the acquisition will create a stronger presence in the Southeast region and provide additional distribution capacity. Cheney Brothers generates approximately $3.2 billion in annual revenue.
“Cheney Brothers will be an outstanding addition to our Foodservice segment, and we are excited to welcome their many talented associates to the PFG family of companies”, said George Holm, PFG Chairman & CEO. “This acquisition will expand and enhance our offerings to a high-quality and diverse customer base. We have long admired the success of Cheney Brothers in the Southeastern U.S. and believe that the combination of our organizations will push the business to new heights. We are excited for what the future holds for the newest addition to PFG.”
Cheney Bros. CEO Byron Russell said he believes the acquisition will “bring together two winning organizations and create a significant platform for growth. Together, the companies will build upon each other’s strengths and achieve outstanding success in the years ahead.”
With the acquisition, PFG will add an additional five distribution facilities with excess capacity for further growth across four Southeastern states.
