State of the State Mid-Year 2024: ‘Freight recession’ continues for trucking industry

by George Jared (gjared@talkbusiness.net)

The transportation sector and trucking in particular have been mired in an economic downturn for more than a year, and several stakeholders within the sector told Talk Business & Politics that there probably won’t be an uptick until the early part of 2025.

Arkansas Trucking Association President Shannon Newton said the trucking industry is suffering from a “freight recession” spurred by inflation, high interest rates and higher fuel prices.

“Economic conditions continue to languish in a lackluster stage. … There are mixed signals on an economic uptick. Even this week, new numbers were released showing a miniscule improvement over last month, but still underperforming from where we were a year ago, which wasn’t great then,” she said.

State of the State Mid-Year 2024: ‘Freight recession’ continues for trucking industry

ATA hosts annual trucking conference this week in Rogers

by Jeff Della Rosa (JDellaRosa@nwabj.com)

Nearly 300 trucking industry leaders are expected to attend the annual Arkansas Trucking Association (ATA) Conference & Vendor Showcase this week in Rogers.

The ATA will host the conference from Wednesday (May 8) to Friday (May 10). The conference events will largely take place at Rogers Convention Center and include speakers who will discuss economics, politics, autonomous vehicles and litigation.

Andrew Boyle, chairman of the American Trucking Associations and co-president of Boyle Transportation, will be the keynote speaker and provide the state of the industry address at 1:30 p.m. Thursday (May 9). Boyle will discuss the most pressing industry challenges, such as electric vehicle mandates and threats to the independent contractor model.

ATA hosts annual trucking conference this week in Rogers

State of the State 2024: Freight recession might not end until later this year, 2025

by Jeff Della Rosa (JDellaRosa@nwabj.com)

Editor’s note: The State of the State series provides reports twice a year on Arkansas’ key economic sectors. The series publishes stories to begin a year and stories in July/August to provide a broad mid-year update on the state’s economy. Link here for the State of the State page and previous stories.

Executives in the trucking/transportation and logistics industry look forward to a freight volume recovery, but it might be modest and slow, coming in the back half of the year or 2025. The market softness has pressured an industry challenged to cover rising costs.

Shannon Newton, president of the Arkansas Trucking Association, said the economic challenges and uncertainty carriers faced in 2023 eclipsed issues, like shaping regulatory and legislative policy and public image. Carriers focused on remaining in business and maintaining their customers and employees.

State of the State 2024: Freight recession might not end until later this year, 2025

Arkansas Trucking Association announces 2023 conference speakers

by Jeff Della Rosa (JDellaRosa@nwabj.com)

Shelley Simpson, president of Lowell-based J.B. Hunt Transport Services, and Gov. Sarah Sanders will be featured speakers at the annual Arkansas Trucking Association Conference & Vendor Showcase next week in Little Rock. Chris Spear, president and CEO of American Trucking Associations, will also speak at the three-day event.

More than 300 trucking industry leaders are expected to attend the event from Monday through Wednesday (May 15-17) at the Statehouse Convention Center. Speakers will address economics, leadership, politics, workforce equity, nuclear verdicts and the state’s role in the global supply chain.

On Tuesday, Simpson, who was named president of J.B. Hunt in 2022, will speak about the role Arkansas plays in the supply chain and the future of trucking. Bryan Day, executive director of the Port of Little Rock, will highlight the expansion of business in central Arkansas and how trucking is helping to drive the growth. Ross DeVol, president and CEO of Bentonville think tank Heartland Forward, will provide strategies for promoting regional innovation to enable job creation and economic growth.

https://talkbusiness.net/2023/05/arkansas-trucking-association-announces-2023-conference-speakers/

Trucking industry tackles longstanding debate of allowing interstate drivers under age 21

by Jeff Della Rosa (JDellaRosa@nwabj.com)

A new apprenticeship program might help settle a debate over whether 18- to 20-year-old truck drivers can safely haul interstate freight. However, the program has struggled with low participation levels as carriers cite unexpected challenges to joining it to draw from the driver pool.

Trucking industry drivers comprise interstate drivers or those hauling freight across state lines. Existing law in 49 states, including Arkansas, allows 18- to 20-year-old intrastate drivers or those hauling freight within a state, but cargo crossing state lines must be transported by a driver at least 21.

Shannon Newton, president of the Arkansas Trucking Association, said the minimum age to engage in interstate commerce should be reduced from 21 to 18 and that employees and their employers are responsible for determining who’s qualified for a job.

https://talkbusiness.net/2023/04/trucking-industry-tackles-longstanding-debate-of-allowing-interstate-drivers-under-age-21/

The trucking industry continues to debate whether the age of interstate truck drivers should be reduced from 21 to 18.

Governor: Arkansas builds steel mill faster than Pennsylvania would permit one

by Steve Brawner (BRAWNERSTEVE@MAC.COM)

Arkansas’ newest steel mill will be built faster than it would have been permitted in Pennsylvania, Gov. Asa Hutchinson said Wednesday (May 11).

In a speech before the Arkansas Trucking Association’s Annual Business Conference & Vendor Showcase in Hot Springs, Hutchinson recalled a conversation he had with U.S. Steel President and CEO David Burritt. The company recently announced it was building a $3 billion steel factory in Osceola that is expected to create 900 jobs with an average salary of more than $100,000.

https://talkbusiness.net/2022/05/governor-arkansas-builds-steel-mill-faster-than-pennsylvania-would-permit-one/

Arkansas Trucking Association turns 90, hosts conference in Hot Springs

by Jeff Della Rosa (JDellaRosa@nwabj.com)

Little Rock-based trade group Arkansas Trucking Association will host its annual business conference this week in Hot Springs as it celebrates its 90th year, according to a Monday (May 9) news release.

Executive forums will take place Wednesday and Thursday at the Hot Springs Convention Center. According to the release, about 300 attendees, comprising trucking executives and industry and political leaders, are expected to participate.

Featured speakers include Gus Malzahn, head football coach at the University of Central Florida, and Gov. Asa Hutchinson. Event speakers will address leadership, electric vehicles, workforce shortages, politics and rising insurance costs.

https://talkbusiness.net/2022/05/arkansas-trucking-association-turns-90-hosts-conference-in-hot-springs/

No Timeline on I-40 Bridge Repair Completion; Lane Changes Save Truckers More Than $1 Million Per Day

by George Jared (gjared@talkbusiness.net)

Officials still are unsure when repairs to the Interstate 40 bridge will be complete, and it will not be reopened to even partial traffic until finished. Tennessee Department of Transportation Community Relations Officer Nicole Lawrence told Talk Business & Politics there have been no significant issues in repairing the fractured beam that closed the bridge in early May.

When the I-40 bridge, the busiest freight carrying bridge in the U.S., was shut down May 11 after a fracture was discovered in a primary support beam, the flow of goods came to a standstill. Traffic was choked on I-55 in the weeks after the closure and it led to long wait times for motorists and big trucks carrying goods.

The trucking industry has absorbed over $70 million in unanticipated costs since the closure, according to the Arkansas Trucking Association. However, the latest data on traffic congestion suggests that the average cost to the trucking industry has reduced from an estimated $2.4 million to $936,000 a day.

https://talkbusiness.net/2021/06/no-timeline-on-i-40-bridge-repair-completion-lane-changes-save-truckers-more-than-1-million-per-day/

(photo courtesy of ArDOT)

The Cost of a Broken Bridge

By KYLE KELLAMS

That crack in the Interstate 40 Bridge connecting Arkansas and Tennessee is costly in many ways. Roby Brock, with our partner Talk Business and Politics, asks Shannon Newton, the president of the Arkansas Trucking Association, about the logisitic headaches caused by the closure of the bridge.

https://www.kuaf.com/post/cost-broken-bridge

Interstate 40 Bridge