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U.S. Bank Freight Payment Index™ reports modest growth in third quarter
Truck freight spending at highest level on record as demand grows but capacity remains constrained due to driver shortage and lack of trucks and trailers.
Freight spending and volume for truckload movement continued to climb in the third quarter of 2021, according to the new U.S. Bank Freight Payment Index. However, several headwinds – including persistent supply chain challenges, weather and the economic impact of the COVID-19 Delta variant – caused the number of shipments in the third quarter to increase at a slower rate than the previous quarter.
Third quarter spending by shippers – up 32.6% year-over-year and 5.6% over the second quarter – again pushed the spending metric to its highest level in the history of the U.S. Bank Freight Payment Index. Increased demand for freight transportation at the same time the trucking industry faces very tight capacity is driving the higher costs. Not only is the truck driver shortage causing limited truck capacity, but now the industry is facing a lack of new equipment, including trucks and trailers. During the third quarter, trucking manufacturers were unable to deliver the needed equipment due to broader manufacturing supply chain issues.
“Our new spending data reflects what we’re hearing on the ground from our clients: there’s high demand for truck freight transportation, but truck capacity is limited by both persistent issues of continued driver shortages and emerging challenges of equipment,” said Bobby Holland, U.S. Bank vice president and director of Freight Data Solutions. “The industry is working tirelessly to meet the increasing demand, but these challenges will take time to address.”
Shipment Index
In addition to the 1.5% increase in shipments over second quarter levels, the U.S. Bank National Shipments Index rose 2.4% year-over-year. This is a slowdown from the second quarter, when shipments rose 4.4% sequentially and 6.8% year-over-year. Three of the five regions (Northeast, Southwest and West) saw growth in shipments versus the third quarter of 2020, while two (Southeast and Midwest) contracted.
“When you consider the slight slowdown in the economy due to the Delta variant, disruptions in the Southeast due to Hurricane Ida, and auto manufacturing plant shutdowns in the Midwest, the slower shipment growth makes sense,” said Bob Costello, senior vice president and chief economist for the American Trucking Associations. “The West region provided a significant boost for the national shipment volume as a record number of imports came in with retailers scrambling to get inventory before the holidays, offsetting some of the softness in the Midwest and Southeast.”
Spend Index
In addition to the 5.6% increase in spending over second quarter levels, the U.S. Bank National Spend Index rose 32.6% year-over-year. In the second quarter, spending increased 10.1% sequentially and a record 44% year-over-year. Additionally, in the third quarter, each of the five regions saw growth in spend from the previous quarter, ranging from a 13.8% increase in the West to 3% in the Midwest.
Regional Data
West
Shipments
Third quarter: 13.8% increase
Year over year: 17.3% increase
Spending
Third quarter: 15.7% increase
Year over year: 44% increase
The West had the largest gains among all regions, both quarter-over-quarter and year-over-year, thanks to a high volume of imports through the West Coast seaports. The large spend increase was due in part to continued strong freight rates as retailers nationwide replenish their inventories from historic lows ahead of the holiday season.
Midwest
Shipments
Third quarter: -0.7% decrease
Year over year: -5.2% decrease
Spending
Third quarter: 3% increase
Year over year: 26% increase
This quarter marked the sixth straight year-over-year decrease in shipments for the Midwest. The steep slowdown in auto production during the third quarter hurt Midwest freight levels. Despite the lower volume, truck freight spending increased. This was due in part to tight capacity because of the truck driver shortage and lack of new equipment. Moreover, higher diesel prices drove up fuel surcharges.
Northeast
Shipments
Third quarter: 5.1% increase
Year over year: 1.7% increase
Spending
Third quarter: 3.1% increase
Year over year: 31.7% increase
The 5.1% increase in volume is the largest quarter-to-quarter increase in two years. The region may have been impacted less by the COVID-19 Delta variant, which helped with household consumption. With a large population, retail sales are a big part of freight volumes.
Southeast
Shipments
Third quarter: -2.9% decrease
Year over year: 3.6% increase
Spending
Third quarter: 3.6% increase
Year over year: 34.7% increase
Recently one of the stronger regions for truck freight volume, third quarter shipments in the region were negatively impacted by strong tropical storms, including Hurricane Ida, and a surge in the COVID-19 Delta variant. A decline in auto production last quarter also hampered freight levels. Freight spending in the region was pushed higher due to constrained motor carrier supply and rising fuel surcharges.
Southwest
Shipments
Third quarter: 1.9% increase
Year over year: 4.3% increase
Spending
Third quarter: 5.9% increase
Year over year: 26.8% increase
With housing starts growing in this region, as well as consumption and oil production, Southwest freight volume in the third quarter hit its highest point in two years. Shipments were also boosted by a surge in truck freight volumes with Mexico.
To see the full report including in-depth regional data, visit the U.S. Bank Freight Payment Index website. For more than 20 years, organizations have turned to U.S. Bank Freight Payment for the service, reliability, and security that only a bank can provide. The U.S. Bank Freight Payment Index measures quantitative changes in freight shipments and spend activity based on data from transactions processed through U.S. Bank Freight Payment. The business processed $31.4 billion in 2020 for some of the world’s largest corporations and government agencies.
Nulogy, a leading provider in supply chain collaboration solutions, and Kinaxis, a global leader in supply chain orchestration, have announced a partnership to develop cutting-edge solutions for brand manufacturing supply chain networks worldwide.
The new partnership aims to catalyze fast-moving consumer goods (FMCG) and life science brands and their supplier networks to work together more effectively through digital transformation solutions, thereby mutually improving costs, service and revenue. Combining the supply chain orchestration capabilities of Kinaxis with the collaborative external manufacturing specialization of Nulogy will enable customers to share forecasts and order information with suppliers and receive inventory capacity information faster.
Nulogy’s purpose-built multi-enterprise platform enables greater responsiveness in the supply networks of leading FMCG and life science brands, including L’Oréal, Colgate-Palmolive, and Church & Dwight, as well as their extended suppliers and hundreds of sites around the world.
“Given the speed and volatility of today’s global market, it is more important than ever for brand manufacturers to digitally synchronize with their supplier communities in order to respond with agility,” said Jason Tham, CEO at Nulogy. “Through our partnership with Kinaxis, we look forward to collaborations that will elevate the performance of supply chain networks around the world.”
Kinaxis Maestro is the AI-infused end-to-end supply chain orchestration platform for fast, intelligent decision-making. Trusted by renowned global brands to provide agility and predictability to help navigate volatility and disruptions, Kinaxis has been a leader in supply chain planning for over 40 years.
"Our partnership with Nulogy improves visibility, control and collaboration of the upstream network of critical suppliers, like contract manufacturers and co-packers, by integrating a variety of supplier data into Maestro,” said Bill Walker, Senior Director, Partner Solutions Extensions at Kinaxis. “Giving our customers the ability to better run simulations, digitize planning and connect in suppliers.”
Learn more about the partnership at ASCM Connect on September 9, 2024. Kevin Wong, Chief Operating Officer, Nulogy; Polly Mitchell-Guthrie, Supply Chain Thought Leader, Kinaxis; and German Vizcaya Leon, VP Global Planning, Colgate-Palmolive will discuss how Nulogy and Kinaxis’s solutions in Advanced Planning & Scheduling and Supplier Collaboration have played pivotal roles in interconnecting Colgate’s network.
FOR IMMEDIATE RELEASE
Contact: Sherri Bosslet
Title: Director of Customer Relations
Phone: 937.415.1715
Email: sbosslet@daytonfreight.com
Date: September 5, 2024
Web: daytonfreight.com
ULINE AWARDED DAYTON FREIGHT FOR EXCEPTIONAL PERFORMANCE
DAYTON, Ohio – Dayton Freight Lines, Inc., a leading provider of regional less-than-truckload (LTL) transportation services, was presented the 2023 Exceptional Performance Award and the Minnesota LTL Carrier of the Year award from Uline.
The 2023 Exceptional Performance Award and the Minnesota LTL Carrier of the Year award were presented to Dayton Freight’s Milwaukee and Hudson Service Centers, respectively. Both awards were given based on the following criteria: exemplary customer service, technological innovation and lastly, partnership and dedication.
Uline, a family-owned business, is the leading distributor of shipping, industrial and packaging materials to businesses throughout North America.
Dayton Freight’s Director of Customer Relations, Sherri Bosslet quoted, “We are incredibly proud of our Service Centers in Milwaukee and Hudson WI for receiving these awards. These accolades from Uline truly demonstrate the dedication and diligence of our Dayton Freight team. We look forward to a lasting partnership for years to come.”
Founded in 1981, Dayton Freight is a private, union-free, less-than truckload (LTL) freight carrier headquartered in Dayton, Ohio. Currently ranked as the country’s 12th largest LTL company, Dayton Freight has 70 Service Centers in 14 Midwest states, served by 6,000+ employees. Offering 1 or 2 day service to thousands of cities, Dayton Freight is known for its prudent growth, operational excellence, advanced technology and an unparalleled company culture known as The Dayton Difference.
Photo Caption: Jeremy Cutchens (Dayton Freight), Shelly Hofmeister (Dayton Freight), Ed VanGrouw (Dayton Freight), Eric Dreissig (Uline), LJ Groen (Uline)
Nulogy, a leading provider of supply chain collaboration solutions, is hosting a session during the Association of Supply Chain Management's ASCM Connect 2024. Nulogy, Kinaxis and Colgate-Palmolive executives will present “Orchestrating Digital Transformation: Nulogy & Kinaxis Empower Colgate-Palmolive’s External Network” on Monday, 9/9/2024, 3:45 - 4:45 p.m. CT in Ballroom E, Level 4.
In an era when digital transformation is paramount for sustainable growth, Colgate-Palmolive stands out as a leader in the consumer packaged goods space. With a strong digital transformation vision and strategic partners that tout the technical capabilities and expertise to bring it to life, Colgate and its extended supply network has been able to reap the benefits of digitally-infused agility, resilience and efficiency to outcompete in today’s marketplace.
The session will cover Colgate-Palmolive’s vision for transforming its supply chain planning and execution, highlighting the imperative to enhance supply chain synchronization and collaboration.
Nulogy and Kinaxis join Colgate-Palmolive in this talk to discuss how their best-of-breed solutions in advanced planning and scheduling and supplier collaboration have played pivotal roles in interconnecting Colgate’s network.
Speakers include:
Moderator: Christine Barnhart, CPIM Chief Marketing and Industry Officer, Nuology
Panelist: Kevin Wong Chief Operating Officer, Nulogy
Panelist: Polly Mitchell-Guthrie Supply Chain Thought Leader, Kinaxis
Panelist: German Vizcaya Leon VP Global Planning, Colgate-Palmolive
Check out the complete Colgate-Palmolive case study by visiting https://bit.ly/3z6xwPK.
Covington, KY — In a significant step toward redefining supply chain efficiency and boosting the local economy, Lakeshore Learning hired Zion Solutions Group, a trailblazer in advanced supply chain integration, to help implement a cutting-edge 1.2 million square foot distribution center in Garland, Utah. This collaboration is set to create over 500 jobs, showcasing an unparalleled commitment to innovation and community development.
“Our relationship with Lakeshore Learning, beginning in 2015, has been a testament to what visionary collaboration can achieve," stated Jim Shaw, President of Zion Solutions Group. “This is not just a collaboration; it’s a leap toward the future of supply chain management. By combining Lakeshore Learning’s vision with our technological expertise, we are set to introduce a distribution hub that exemplifies efficiency, sustainability, and economic growth for Garland."
Artin Ghazarian, Chief Supply Chain Officer at Lakeshore Learning, highlighted the project's ambition: "Our journey with Zion Solutions Group has been marked by a shared drive for excellence. This distribution center goes beyond expanding our logistical capabilities—it's a testament to our dedication to setting new industry standards for efficiency and environmental stewardship in supply chain management."
Jordan Frank, EVP & Co-Founder of Zion Solutions Group, emphasized the collaborative synergy: Our relationship with Lakeshore Learning is more than a partnership; it's a melding of minds aimed at redefining the future of our industry. We're not just optimizing logistics; we're crafting a model of innovation that leverages technology for smarter, more sustainable operations. Our goal is to inspire the sector by demonstrating how collaboration and technology together can create impactful solutions.”
The facility will harness the latest in automation and robotics to optimize both efficiency and scalability. Zion Solutions Group will play a crucial role in this evolution, meticulously shaping the project from its conceptual stages to its final form. This includes value-added engineering to support Lakeshore Learning’s specific needs, overseeing the procurement and engineering processes to ensure precision, and integrating advanced software solutions—including Zion Apex (WES)—for peak functionality. Beyond the project’s completion, Zion’s Customer Experience team will continue to support the operations team and provide optimization opportunities, ensuring the facility operates smoothly and evolves with technological advancements.
With an operational goal set for 2025, Lakeshore Learning’s Garland distribution center represents a major milestone in job creation and economic growth for the region. This initiative aligns with Zion's mission to drive sustainable innovation and cement its leadership in the market.
For more information about Zion Solutions Group and its groundbreaking projects, please visit https://thezsg.com/.
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About Zion Solutions Group
Zion Solutions Group, a leader in Supply Chain Integration, uses its 90+ years of knowledge to deliver memorable experiences and guide intelligent change. Specializing in material handling integration, Zion provides comprehensive services that include detailed data analytics, solution design, procurement, implementation, and post-implementation support. Our customer-centric approach and Project Lifecycle process ensure tailor-made solutions using cutting-edge technology, setting us apart in the industry. Zion, in support of its core purpose, “To Leave a Positive Impact on the Lives of Those We Touch,” is committed to driving success and sustainable growth for our partners and customers.
About Lakeshore—Products Designed with Learning in Mind®
Lakeshore Learning Materials is a leading developer and retailer of top-quality materials for early childhood education programs, elementary schools, and homes nationwide. Since 1954, Lakeshore Learning Materials has offered innovative learning materials distinguished by their quality, educational merit, and safety. To learn more, visit LakeshoreLearning.com.
Panel Built, Inc., a leading provider of modular offices, mezzanines, and custom-engineered structures, has announced plans to expand its primary facility, PB1. The expansion will include additional office and fabrication space, allowing the company to better accommodate its rapidly growing workforce and increasing demand for its innovative space solutions.
As Panel Built continues to experience significant growth in both personnel and market reach, this expansion marks a critical step in the company’s strategic development. The additional space will enable the company to enhance its operational efficiency and continue delivering high-quality products and services to its diverse client base. The expanded facility will also provide a more collaborative work environment for the Panel Built team, fostering innovation and reinforcing the company’s commitment to excellence.
"Panel Built has built a reputation for delivering modular solutions that meet the unique requirements of various industries, including commercial, military, government, and industrial sectors. The company's expertise in engineering, design, and installation has made it a trusted partner for organizations seeking efficient and customizable space solutions.
The Blairsville facility expansion is expected to be completed by early 2025. Panel Built is committed to maintaining uninterrupted service to its clients throughout the construction process, ensuring that all projects remain on schedule and meet the company’s high standards of quality."
- Mike Kiernan CEO
About Panel Built, Inc.
Founded with the mission "To Solve Our Customers' Space Needs With Excellence And Great Customer Service," Panel Built, Inc. specializes in modular construction, offering a range of solutions from modular offices and mezzanines to guardhouses and cleanrooms. With extensive experience in both public and private sectors, Panel Built is dedicated to delivering space solutions that meet the highest standards of quality, safety, and customer satisfaction.