Freight Manager

Is Rail More Fuel Efficient Than Truck?

2010-02-09T17:07:00.002-05:00

Freight Manager
Fuel Surcharge Update for the week of 2/3/2010 to 2/9/2010
Dept of Energy reports national average fuel price is $2.781
The http://www.fr8manager.com/ estimated fuel surcharge is $0.28 per mile or 17% of the line haul charge.
The complete chart of the Weekly Retail On-Highway Diesel Prices can be found at http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report_combined.asp

For years, actually decades now the freight railroads have been claming that shipping by rail was somehow more fuel and emission efficient than that of the over the road truck and trailer. A recent report by a former trucking and rail executive disputes these statements of efficiencies, and goes on to say that claims of rail freight being greener and more friendly to the environment is nothing more than an attempt to gain market share.

There is no question that there is an economic fuel advantage when moving heavy, and high volume loads very long distances, however the report identifies no advantage in medium haul moves. Furthermore railroads are often reluctant to factor in the cost of dead head miles and fuel burn by simply repositioning empty rail cars for their next load.

Many customers making a supply chain change from over the road shipping to rail have found they must ship substantially more product to hedge against unreliable rail schedules as well as increased damaged freight due to excessive heat, leaking rail cars, or damage due to loads shifting in transit.

The report estimates that energy efficiency could be increased by 20% by simply increasing the gross weight limits of over the road trucks to 97,000 pounds. The railroad lobbyist have fought hard to oppose these changes.

Railroads are by far more carbon dioxide efficient than trucks moving freight four times farther while releasing the same amount of carbon dioxide. The economists report goes on to say nitrogen oxide (emitted by both trucks and trains) regulations for trucks is four times stricter than for trains, effectively nullifying and eliminating the railroads significant carbon advantage.

Less Than Truckload

2010-01-27T14:07:00.001-05:00

Freight Manager
Fuel Surcharge Update for the week of 1/27/2010 to 2/2/2010
Dept of Energy reports national average fuel price is $2.833
The www.fr8manager.com estimated fuel surcharge is $0.29 per mile or 17% of the line haul charge.
The complete chart of the Weekly Retail On-Highway Diesel Prices can be found at http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report_combined.asp

Less Than Truckload

Freight Manager is proud to announce lower LTL pricing on our already discounted LTL rates! Effective immediately all LTL pricing will reflect a $12.00 decrease in pricing on each and every LTL shipment. This is not a discounted rate, it is a reduction in the overall costs to Freight Manager for providing this service. They change is permanent and not temporary. Freight Manager is simply passing this cost savings directly through to our customers.

"Super Truck"

2010-01-20T10:28:00.001-05:00

Freight Manager
Fuel Surcharge Update for the week of 1/20/2010 to 1/26/2010
Dept of Energy reports national average fuel price is $2.870
The www.fr8manager.com estimated fuel surcharge is $0.29 per mile or 18% of the line haul charge.
The complete chart of the Weekly Retail On-Highway Diesel Prices can be found at http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report_combined.asp

On January 11, 2010 the DOE (Department of Energy) announced it has awarded $115.7 million to 3 of the major heavy duty truck manufacturers, Cummins, Navistar, and Daimler Trucks of North America. The goal of the project is to develop a “Super Truck” that would improve fuel efficiency by at least 50%. It should also be noted that Volvo Trucks North America also submitted a proposal, however did not receive any funding from the DOE.

This idea to create a more fuel efficient truck for the class 8 market is not new, in fact about 3 years ago a certain large discount retailer mandated to all of it’s class 8 truck fleet manufactures that it would require all newly purchased tractors to have a 100% increase in fuel efficiency by 2010. This may have been a bit ambitious!
So the golden question is will the tax payers money be used to successfully research and develop new fuel efficient technologies, or will it be used to as a source of “bail out” fund for the three OEM’s lucky enough to receive funding? I guess that answer will be told in approximately 60 months.

Another One Bites the Dust

2010-01-11T17:25:00.002-05:00

Freight Manager
Fuel Surcharge Update for the week of 1/13/2010 to 1/19/2010
Dept of Energy reports national average fuel price is $2.879
The www.fr8manager.com estimated fuel surcharge is $0.29 per mile or 18% of the line haul charge.
The complete chart of the Weekly Retail On-Highway Diesel Prices can be found at http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report_combined.asp

As previously stated in this blog, 2009 proved to be the death of many trucking fleets. Not to be out done by the countless others that have packed it in and closed their doors, but Arrow Trucking has also joined the ranks of the defunct trucking companies. Arrow Trucking abruptly stopped doing business on December 22nd. They shut off access to driver fuel cards and left some 1400 truck drivers stranded throughout the country. Fearing that trucks could and would be simply abandoned at truck stops, rest areas, or on the side of the road, Federal Motor Carrier Safety Administration officials stepped in two days later on December 24th ordering Arrow Trucking’s management team (or lack there of) to notify stranded drivers where to properly and safely turn over their trucks to truck dealerships where they would then be provided a bus ticket home.

If the you find this behavior on the part of a major truck to be appalling, then you are not alone. Arrow Trucking knew this day was coming much earlier than the morning of December 22nd. The management team proved to be irresponsible in placing the lives of their drivers in a dangerous situation knowing darn well many of these drivers would be short on money, low on fuel, and in frigid arctic weather conditions. Freight Manager is simply disgusted with the irresponsibility of some of these bankrupt trucking companies. The drivers that worked for them are not responsible for the carriers inability to properly price freight and remain competitive in a complex economy. These trucks should have been systematically taken off the road safely through and organized plan, and not left to fend for themselves. I wonder what Arrow Trucking would have done in the event any one of those stranded drivers were involved in a major traffic accident after the doors closed on December 22nd?

Freight Manager poses the question; are you currently or potentially working with the next bankrupt or defunct motor carrier? Sure there are more to come in the next few weeks and months, and on April 1st apportioned plate fees come due. Will this [tax] bankrupt even more carriers?

Freight Manager encourages shippers to take advantage of our unique web based approach to trucking, utilizing our vast resources of screened, scrutinized, and qualified motor carriers, and not having “all of your eggs” in one motor carriers basket. Do not get burned by bankrupt trucking companies, use Freight Manager www.fr8manager.com for all of your truck transportation needs.

To Card Check or Not To Card Check

2010-01-04T16:46:00.001-05:00

Freight Manager
Fuel Surcharge Update for the week of 1/6/2010 to 1/12/2010
Dept of Energy reports national average fuel price is $2.797
The www.fr8manager.com estimated fuel surcharge is $0.28 per mile or 17% of the line haul charge.
The complete chart of the Weekly Retail On-Highway Diesel Prices can be found at http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report_combined.asp

“Barrack Obama for president”, they shouted. As Mr. Obama took office the unions finally had won, and would have their Card Check legislation passed into law, or so they thought.

“Card Check” is the latest tactic proposed by the Teamsters Union and other labor groups. This new organizing method was sure to revive, reenergize, and reload the ranks of organized labor, or so they thought.

The proposed legislation of “Card Check”, would give the unions the right to walk into any private business, pass out voting ballets, and hold an impromptu election right then and there. In addition each ballet must be signed by the worker identifying each individuals decision, as well as eliminate a minimum ballet percentage to qualify the election. This of course benefits the union because those not interested in organizing most often fail to return ballets.

Not only is Card Check dangerous to businesses and to our economy, but it is incredibly dangerous to the workers and their families who choose not to be represented by organized labor. Ignoring the obvious dangers this legislation presents Mr. Obama and the Democratic party proceeded with their agenda, seemingly unconcerned about the welfare of the moms, dads, sons, and daughters that could become victims from senseless violence that would inevitably erupt from a non democratic, non private election.

Fortunately, and unfortunately for us Washington was forced to deal with other more pressing issues, so 2009 came and went without Card Check. At one point the Card Check legislation was briefly introduced, however quickly abandoned after a threatened filibuster by Republicans.

Is Card Check official dead? It is for now, but you can bet that organized labor, and the Teamsters Union will try and revive it as they continue their relentless push for organizing LTL Trucking Companies such as Fed Ex, Old Dominion, Estes Express Lines, Conway, and others.

If you find yourself in need of LTL Trucking Services, turn to Freight Manager www.fr8manager.com. Our Less Than Truckload Services can provide you with immediate discounted rates on any LTL shipment on over 25 different LTL Carriers, and will print your Bill of Lading for you.

Fleet Capacity Shrinks as Demand Remains Soft

2009-12-31T08:42:00.005-05:00

Freight Manager
Fuel Surcharge Update for the week of 12/30/2009 to 1/5/2010
Dept of Energy reports national average fuel price is $2.732
The http://www.fr8manager.com/ estimated fuel surcharge is $0.27 per mile or 16% of the line haul charge.
The complete chart of the Weekly Retail On-Highway Diesel Prices can be found at http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report_combined.asp

The third quarter of 2009 saw an additional 405 trucking fleets close up shop, bringing the total fleet failures through 3 quarters in 2009 to roughly 1,300. While 1,300 trucking fleets going out of business in the first 3 quarters of 2009 might seem alarming, it pales in comparison to the blistering rate of 2,690 fleets that failed during the same period of 2008. The total number of truck fleet failures in 2008 was 3,065. So lets recap, 3,065 fleets failed in 2008, and through the end of the third quarter of 2009 an additional 1,300 fleets have failed, bringing the combined total to 3,990 fleets out of business with one quarter still remaining in 2009.

So what does all this mean? In 2008 the trucking industry lost over 39,000 trucks, and thus far through 2009 has lost over 14,000 trucks. This is a staggering truck loss of over 53,000 units.

It is interesting to point out that the compiled numbers are easy to establish based on the number of companies closing their doors and adding together the number of trucks each one operated. The loss of over 53,000 trucks might seem large (and it is), but what we do not know is the number of trucks lost by operational trucking fleets that have simply parked and taken the units out of service. Freight Manager estimates the combined truck losses would exceed 100,000 truck units.

Many shippers ask how they can avoid, or minimize the risk of working with a trucking company on the verge of an impending bankruptcy or closure. The correct answer is to utilize the Freight Manager fully automated, web based trucking brokerage system. Most load shipping customers do not have the time or the resources to properly monitor the stability, insurance, and safety ratings of the trucking companies that they work with. In fact most shipping managers are aware of this issue, yet continue to roll the dice on trucking companies they know very little about.

Most shippers think or assume that they have no liability when a trucking company hauling their load is involved in a major accident. They could not be more wrong. Recently the courts have found shipping companies and some trucking brokers liable for contracting with unsafe and under or uninsured trucking companies. One major accident would potential bankrupt most companies.

Freight Manager has the ability to constantly monitor insurance, operating authority, and safety ratings of over 100,000 trucking fleets 24 hours a day, every day of the year. If you are not using Freight Manager or not regularly utilizing the Freight Manager system, you should be. Insulate and protect your business from costly liability, by contracting your truck shipments through Freight Manager http://www.fr8manager.com/ and taking advantage of our thorough safety standards and procedures.

Merry Christmas

2009-12-24T09:21:00.003-05:00

From all of us here at FreightManager, we would like to wish you and your family a very Merry Christmas.

Our business offices will be closed for the long holiday weekend, and will reopen at 8AM eastern time on Monday December 28th.

Should you require FreightManager assistance during this time please contact our after hours staff at 863-398-1188.

Longer & Heavier Trucks

2009-12-22T16:46:00.002-05:00

FreightManager
Fuel Surcharge Update for the week of 12/22/2009 to 12/28/2009
Dept of Energy reports national average fuel price is $2.726
The http://www.fr8manager.com/ estimated fuel surcharge is $0.27 per mile or 17% of the line haul charge.
The complete chart of the Weekly Retail On-Highway Diesel Prices can be found at http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report_combined.asp

In 2010 lawmakers in Washington are expected to continue the debate over longer and heavier trucks. Current proposals include longer trailers from the standard 53ft Dry Van, to a 57ft Dry Van, also extending the maximum vehicle length from 70ft to 75ft, as well as increasing the maximum gross weight limits from 80,000 lbs, to a whopping 96,000 lbs.

Now much like everything else that goes on in Washington, there are pros and cons to this issue. The environmentalists say that longer and heavier trucks, can carry more and will reduce the number of trucks on the road, effectively reducing the carbon footprint from trucking. Then there are those that question the safety of this proposal, sighting increased stopping distance on our already over crowded interstates. What about the nations aging and ailing bridges. Most truckloads that exceed the 80,000 lbs threshold are routed around certain bridges that can not support the weight. What will we do with these bridges? With no immediate plan or funding to repair and reinforce these bridges will the bridges suddenly become capable of supporting 96,000 lbs trucks by merely changing the weight limit sign at the foot of the bridge? Needless to say labor unions and support groups vehemently oppose this legislation, once again sighting safety concerns and loss of quality jobs of “skilled labor”. Interesting enough trucking groups can be found wavering on both sides of the issue. Some say more hauling capacity equals increased revenue to the truck, while others say just the opposite indicating that shippers will insist on maximizing load capacity without any additional compensation.

The issue of longer and heavier trucks will undoubtedly rage on and will cause much controversy in the coming months. The question is will we still be arguing these same points this time next year?

New blog for 2010

2009-12-19T10:01:00.003-05:00

Thank you for reading the FreightManager blog. Please register as a follower of so that you recieve regular updates as new blog postings are published.

The FreightManager blog is new for 2010 and is designed to keep our readers current on the ever changing issues that affect the transportation industry.

Your comments are always welcome, and from time to time we will survey your thoughts on various topics. We hope that you enjoy this blog and find yourself more informed each time you share your time with us.

From myself, Rob Napier CEO Fr8manager.com Inc, and the entire FreightManager family, thank you for reading and supporting our blog.