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Economy
19,000 trucks and counting: XPO buys Con-Way for $3 Billion
GREENWICH, CT.--If you've ever mused that it'd be great to sell off your assets and get into the, say, 3PL business, one of the biggest trucking deals in history should give you a reason to think otherwise. In early September, the colossal freight brokerage pros XPO Logistics Inc., bought Con-Way Inc. for about $3 billion, officially making the logistics company the second biggest LTL carrier on the continent. The combination will grow XPO's global ground transportation network to approximately 19,000 owned tractors and 46,000 owned trailers, 10,000 trucks contracted through independent owner operators, and access to more than 50,000 independent carriers.
Some Toronto Container Truckers Hit Picket Lines
BRAMPTON, ON - A strike by independent truckers who are members of the Container Trucking Association of Ontario (CTAO) is having a negative impact on the free movement and flow of goods when it comes to container deliveries in the Greater Toronto Area (GTA)...or maybe it isn't.
Canadian Bank Buying GE Capital Transportation Finance
CHICAGO, TORONTO, and FAIRFIELD, CT -- General Electric Corp. has agreed to sell its GE Capital Transportation Finance business in the U.S. and Canada to BMO Financial Group (BMO), the parent of BMO Bank of Montreal, and to its wholly-owned Chicago-based subsidiary BMO Harris Bank. Terms of the deal have not been released though BMO said the acquisition has net earning assets of approximately US$9 billion. The transaction is subject to customary regulatory and other approvals and is expected to close in December of 2015. The move is the latest by GE to sell off most of the assets in its GE Capital Financing operation. "We continue to execute on our asset sales and are on track to reduce our ending net investment by US$100 billion by the end of 2015 and expect to be substantially done with our exit strategy by the end of 2016," said Keith Sherin, GE Capital chairman and CEO.
Trucking Conditions Index at Highest Level This Year
BLOOMINGTON, IN - A measure of trucking conditions in the U.S. continues to improve, reaching a new high for the year, according to freight transportation forecasting firm FTR. Its newly released Trucking Conditions Index (TCI) measure for July continued its recent rise with a reading of 8.07. Substantial upward revisions to first quarter freight growth have helped to push full year growth projections close to 4%, said FTR. The stronger freight forecast is now reflected in the improved TCI readings which had been languishing in very modest territory. Additionally, recent revisions to U.S. second quarter gross domestic product (GDP) growth suggests that improvements in freight drivers could possibly continue, according to FTR. Along with these improvements, FTR is forecasting double digit positive TCI readings by the end of the year. "Stock market gyrations may have caused concern, but the freight market continues to chug along. Pressure to add more drivers has momentarily eased, yet freight continues to increase and rates paid to truckers are still relatively strong," said Jonathan Starks, FTR's director of transportation analysis.
Diesel Costs Turn Higher for First Time in Weeks
LONDON, ON and WASHINGTON, D.C. -- The average price for trucking's main fuel has posted weekly increases in both Canada and the U.S. for the first time since early this summer. In Canada diesel gained $0.002 from last week for a national average of $1.033 per liter, according to the petroleum information services provider The Kent Group. This follows 10 consecutive weeks where the price either fell or was unchanged, in which it declined a total of $0.093 per liter. Despite this week's gain, diesel is $0.264 per liter less than this time last year and remains at its lowest level in several years. South of the border, the U.S. Energy Department reported the first week-over-week increase for diesel in 14 weeks, with the average retail price picking up US$0.02 from last week, hitting US$2.534 per gallon. From late May through the end of August the average U.S. diesel price decreased by US$0.40, registering US$2.514, its lowest price since July 2009.
Continental Opens Commercial Retread Facility in Saskatchewan
SASKATOON, SK --- Continental Tire has opened what it says is the first commercial tire retread facility in western Canada. The new location will operate as a ContiLifeCycle facility, which is the umbrella for Continental Tire's retreading operations, according to Continental.
Viewpoint: National Truck Week 2015
National Trucking Week, celebrated September 6 to 12 this year, is a good time to consider the truck driving occupation and what we can do to encourage the best candidates to enter a demanding and essential career that requires judgment, planning, know-how and a host of other skills. Unlike autonomous vehicles, drivers may be called upon to react quickly to unexpected incidents on the road, bringing all their varied experience about their equipment, the load they're hauling, and road conditions into play. The question is, is the trucking industry appealing to enough quality candidates to meet our needs today - and in the future? Planners of large-scale projects in Northern BC are realizing the pool of available drivers is diminishing at a time when they need it to grow. A report developed by a liquefied natural gas (LNG) provincial working group identifies "truck driver" is the 7th most in-demand occupation to complete these projects. Today, there are about 300,000 truck drivers in Canada - that's 1 percent of the population and 1.5 percent of the labour force. In BC, most truck drivers are male (96 percent), and nearly half (47 percent) are between the ages of 45 and 64. With less interest in the career from young men, the traditional labour pool for trucking, governments are funding programs to train women and Aboriginal candidates to be competent for the occupation.
Westport and Fuel Systems Solutions Announce Merger
VANCOUVER, BC and NEW YORK, NY -- Westport Innovations Inc. and Fuel Systems Solutions Inc. on Tuesday jointly announced the companies have entered into a merger agreement to create an alternative fuel vehicle and engine company. The move comes after the two companies combined lost US$43.7 million in the first half of 2015, according to Transport Topics newspaper. Westport has a publicly stated goal of reaching break even by the middle of 2016 and the merger would only strengthen the company's ability to meet this goal, said a news release. The companies anticipate closing the transaction in the fourth quarter of 2015. Westport and Fuel Systems will operate as separate companies until that time.
