Category: Truck Industry News

Founder of R+L, Ralph L. “Larry” Roberts, Carriers Passes Away at Age 77

R+ L Carriers is a private family-owned freight shipping company that has been providing world-class customer service with every delivery for over 55 years. The company has been awarded the “Quest for Quality Award” in Logistics management and has grown from a one-truck fleet to a fleet of over 21,000 tractors and trailers. The company owes its success to its founder, Ralph L. Larry Roberts, who passed away on March 19th, 2023 at the age of 77. 

In the Mid-1960s, Roberts had the dream of owning his own business so he ended up purchasing a single truck that he used to haul furniture and a warehouse behind his family home in Wilmington, Ohio. His business started off providing service exclusively within Ohio but soon expanded to five other Midwestern and Southern states. 

The company continued to grow further with the purchase of Gator Freightways, Inc. and Greenwood Motorlines, Inc. With the deregulation of the trucking industry in the early 1980s, the company incorporated a system that moved freight at transit times that were unrivaled. In 2007 the company became a number one LTL carrier. The company has now expanded to serve all 50 states, as well as Canada, Puerto Rico, the Dominican Republic, and many other Caribbean islands. 

R+L Carriers strives to provide the best service with competitive pricing and save operations. Ralph L. “Larry” Roberts’ legacy will continue to live on in the company he founded and established over the years with the help of his family and numerous dedicated employees.

Knight-Swift Announces Major Merger with U.S. Xpress

Knight-Swift Transportation has officially announced an agreement to acquire U.S. Xpress Enterprises. This is not the first time the company has merged with another, however. In 2017, Knight Transportation and Swift Transportation merged to create Knight-Swift Transportation Holdings Inc. The difference between this merger is that U.S Xpress will keep its brand and continue to operate separately. 

U.S. Xpress was purchased by Knight-Swift for $6.15 a share, for a total of about $808 million. The acquisition is officially expected to close in the second or third quarter of the year and will pay around $291 million in cash at closing. This will be the biggest deal for Knight-Swift since it acquired AAA Cooper Transportation in 2021. 

In this acquisition, Knight-Swift will assume the acquired company’s debt of $484 million. The debt was caused by a multi-year decline in financial revenue. Ultimately U.S Xpress stockholders were pleased with the high closing stock price after the acquisition was complete.

 While the company will be acquiring U.S. Xpress’ accumulated debt, this acquisition is expected to add roughly $2.2 billion in operating revenue to Knight-Swift. This will also cause their truckload fleet to have a total of 25,00 tractors and 93,000 trailers. 

 This merger is expected to help U.S. Xpress significantly and reduce the turnover rate of employees, which had been happening during the company’s financial decline. This merger is also expected to increase the revenue of both companies to avoid any further financial decline from either company.

What The Moving Forward Act Could Mean For You

A bill is currently being pushed in Congress that could cause raise trucking liability insurance, according to Freightwaves.

Currently, truckers are expected to have at least $750,000 of commercial truck insurance. However, a provision within the larger Moving Forward Act could raise the trucking liability insurance minimum to $2 million – more than twice what is currently expected.

This comes at a time when so-called nuclear verdicts and associated rising commercial truck insurance premiums are making it difficult for many small trucking operations to stay afloat. 

In recent months, many trucking companies have been forced to shutter their operations as a result of trucking liability insurance premiums becoming unaffordable. 

Plus, the trucking industry at large (along with the rest of the economy) is suffering the adverse effects of the coronavirus

The proposed $2 million trucking liability insurance minimum would also be subject to change due to inflation every five years, meaning it would continue to increase over time.

This would be a massive hit to smaller trucking companies who are already struggling to afford commercial truck insurance. The Moving Forward Act, if unchanged, could take out many more small trucking operations.

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Was The Driver Shortage All A Hoax

For over a decade the American Trucking Association (ATA) has been a ring leader in sounding the alarm for the demand of truck drivers in the industry, due to a driver shortage. It has even been predicted that the shortage would increase to roughly 100,000 drivers by 2021.
A more recent study released by the U.S Bureau of Labor (BLS) shows evidence that the trucking industry “works as well as any other blue-collar labor market and poses no constraints on entry into (or exit from) the occupation.”

The Truck Driver Shortage “Myth”

In the study it was revealed that the shortage is a matter dealing primarily with low wages and long hours than the off balanced ratio of truckers to surges in demand, within the industry. After careful review and study in trends the U.S. Department of Labor is speaking out against what the ATA has been driving into the minds trucking advocates across America.

There are many lawmakers who have jumped the gun in order to combat the decade long myth that seems to be the big news affecting the industry. There are 48 states that allow 18 year olds to obtain a commercial driver’s license. Among those is Colorado governor, Jared Polis, who recently signed a bill lowering interstate trucking age limits, just this year. According to Owner-Operator Independent Drivers Association (OOIDA) the solution of lowering the age opens the door to incidents. Safety groups have opposed the tactic since the beginning, contending that drivers 21 and younger lack the experience to operate heavy machinery, that can reach up to 60,000 Ibs. when loaded.

Instead of finding legitimate solutions, the misinterpretation of high turnover in the industry has taken the focus off the key issues of high mistreatment of workers and low wages, and placed it on the opposite. It is reported that recruiting more drivers will create competition for wages, encouraging drivers to sell themselves short in order to get the job.

Effective Methods

With the real reason behind such high turnover revealed, it is easy for industry leaders to strategize to uncover ways to fix the issue. Turnover rates have reached up to 98%, since mid 2017. In this instance maintaining good retention is crucial to make the industry work for everyone. There are various ways to do so and lower the turnover rate for the industry, as a whole.

Time Well Compensated

Compensation and benefits have been used as incentive methods to bring in more drivers. Adding a promise of consistency will lessen the turnover rate drastically. Gordon Klemp, founder and president of the National Transportation Institute, uncovered that the increase in recent turnover was also affected by drivers uprooting to find fleets offering higher wages. This caused a lot of movement within the job market. Keeping a close eye on trends in wages will even the playing field and stabilize the amount of movement in the market.

Improved Selection Process

It is important for fleets to not overlook the step of measuring and controlling the cost of replacing a driver. Hiring the wrong person can cost thousands. That is why the selection process should be a little more detailed than checking off a CDL box and whether or not they can dress the part with a hat and flannel. Establishing and Identifying warning signs in applicant’s background and past work experiences can separate finding a diamond in the rough as far as an employee, or finding someone who only looks the part and lacks in important areas.