Hey everyone! It’s time for your Monday Daily Trucker news update! I’m Isela Rios.
And I’m Carlin Stafford. We have a lot of news to cover today, including:
The signs the freight market is heading in a positive direction…
A multibillion dollar deal between tire makers…
And incredible photos of a fiery crash in Texas!
So, let’s get trucking!
Carlin: We’ve got some good news for the trucking industry – looks like the market as a whole is gaining some financial steam! Thanks to the quarterly earnings of BMO, the former Bank of Montreal which is a big lender in the transportation sector and often used to measure how the industry is trending, we know that things are moving in the right direction. As of the first quarter of 2021 – BMO reported an 8-percent growth from the same time last year – which was pre-pandemic. Their report also shows fewer write-offs so far than in 2018 – which is considered by many to be the strongest freight market in recent history. Here’s to hoping this trend continues!
Isela: That’s not the only good sign for freight! In fact, as it turns out, real estate is also a good indicator of how things are trending, especially for flatbed haulers. The Fannie Mae Home Purchase Sentiment Index, yeah that’s literally it’s name, increased by a pretty sizeable amount! Low interest rates are helping lumber prices which is being driven by a higher demand for single-family housing and remodeling projects, despite the pandemic. Now what impact is that having on the market? Well – right now, flatbed spot rates are sitting at 2 dollars and 21 cents… Last year at this time – it was .37 cents lower!
Isela: The federal government is reversing course and is NOW supporting the ethanol industry’s lawsuit over biofuel waivers granted to oil refineries by the Trump Administration. The EPA said it supports a Court of Appeals decision that the Trump Administration EPA improperly granted exemptions to refineries in the lawsuit, which was filed by the Renewable Fuels Association and farm groups. Federal law requires refiners blend in biofuels into the nation’s gas supply… However, they can get exemptions if they show that doing so hurts their finances. Well, from 2016 to 18, the EPA issued 85 exemptions, which according to the Renewable Fuels Association, undercut renewable fuel volumes by 4 billion gallons! The lawsuit now heads to the Supreme Court.
Carlin: Sticking with fuel – the almost 10 cent diesel spike is one of the highest in more than 3 years! An average gallon of diesel now runs about 2 dollars and 97 cents – which about 9 cents more than it cost this time last year. The cause? Well, the darn artic blast that hammered much of the US the third week of February. Since a lot of refineries are in southern states, they’re not exactly built to withstand such a brutal cold… And a lot of them had to be closed to avoid dangerous results.
Carlin: Did you guys hear about this?? Goodyear has purchased Cooper tire! The almost 3 billion dollar deal will give America’s largest tire producer – Goodyear – a bigger role around the world, including China – the world’s largest car market. Goodyear was already the world’s 3rd largest tire manufacturer, behind only Bridgestone in Japan and France’s Michelin. While it won’t move spots after the purchase, it’s estimated that the company will now see global sales spike to 15 billion dollars from the 12 billion it currently makes.
Isela: Check out these photos from a massive fire in Central Texas last week! A train hauling petroleum collided with an 18 wheeler – 14 cars overturned and caught fire! Thankfully the driver of the semi was able to get out with no injuries… However, it took responders several hours to finally get the flames put out… And nearby houses were evacuated as a safety precaution.
That does it for today’s update!
Tune in tomorrow for more trucking news you need!
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