Trucking news and briefs for Thursday, Nov. 21, 2024:
Truck tonnage grew in October
Trucking activity in the United States rose modestly in October, according to the American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index, the third increase since July.
ATA's Truck Tonnage Index improved by 1.2% in October after declining in September.ATA
In October, the index equaled 114.6 compared to 113.3 in September. The index, which is based on 2015 as 100, equaled the reading from the same month last year. The seasonally adjusted increase follows a decline in September.
“The slow, and choppy, climb off of the bottom continued in October,” said ATA Chief Economist Bob Costello. “Since hitting a low in January of this year, tonnage is up a total of 3%, plus the index is up sequentially in three of the last four months. No doubt the freight market has improved – albeit slowly – over the course of the year.”
The not seasonally adjusted index, which calculates raw changes in tonnage hauled, equaled 121.3 in October, 8.6% above September.
Trucking conditions saw September decline, but positive readings expected on horizon
Trucking trucking market conditions for motor carriers declined in September from August, according to FTR’s Trucking Conditions Index (TCI).
The firm’s TCI declined to a -2.47 reading in September from August’s -1.39 reading. FTR said weakness in the principal freight dynamics -- rates, utilization and volume -- offset lower fuel costs and slightly less unfavorable financing costs during the month.
The TCI has been positive only twice -- in May and June of this year -- since April 2022, but FTR’s forecast envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” said Avery Vise, FTR’s vice president of trucking. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
With the election of President-elect Donald Trump in mind, Vise said FTR will “be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity.”
Florida fleet owner found guilty of Ponzi scheme charges
A jury in the U.S. District Court for the Southern District of Florida earlier this month found Sanjay Singh, owner of Royal Bengal Logistics Inc., guilty of wire fraud, money laundering and conspiracy charges.
As previously reported, Singh was charged by the U.S. Securities and Exchange Commission after raising approximately $112 million from investors in an alleged Ponzi scheme.
According to the Department of Transportation Office of Inspector General, an investigation revealed that Singh used his company to create a Ponzi scheme by attracting investors to purchase contracts for trucking services with promises of extremely high interest payments. The scheme garnered many investors from the Haitian-American community, OIG noted.
The investigation also revealed that Singh misappropriated millions of dollars of investor funds for personal gain, including sending millions overseas to family members in India.
Singh’s sentencing is scheduled for Feb. 28, 2025.
[Related: Florida fleet owner charged in alleged $112M Ponzi scheme]
National courier Speedy Freight expands U.S. operations
Shown at Speedy Freight's Irving, Texas, ribbon-cutting ceremony are, from left: Kenneth White, Starr Bollefer, Kody Slade and Estefany Ramirez.
National same-day courier firm Speedy Freight has expanded further into the U.S. market, establishing a new office and a 50,000-square-foot warehouse in Irving, Texas, representing an investment of approximately $1.5 million.
Strategically positioned near Dallas Fort-Worth Airport, a prominent U.S. logistics gateway, this move signals Speedy Freight's dedication to becoming a household name in logistics brokerage and the franchisor of choice in the logistics sector, the company said.
With its rapid U.S. expansion plan, the new Dallas site will serve as Speedy Freight's U.S. Headquarters and Training Academy, offering state-of-the-art training aligned with international standards of quality and security – ISO 9001, 14001, and 27001 certifications. The academy supports continuous improvement and provides the tools for franchisees and team members to deliver personalized logistics solutions.
The firm is set to launch eight franchises in the U.S. by the end of 2025, reinforcing their ambitious goal to grow to 60 franchises by 2030.
"We're all in on our mission to expand aggressively across the U.S., and the Dallas Headquarters and Training Academy marks a significant milestone," said Kody Slade, President of Operations for Speedy Freight. "Our central Dallas location not only supports our franchise network but enables us to develop specialized logistics solutions that make a real difference for clients across industries."
