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US heavy-haul truckers build revenue, but face big challenges

Demand for wind turbines will provide more business and revenue for heavy-haul trucking companies, as companies rush to claim tax credits. Photo credit: Shutterstock.com.

The largest US heavy-haul trucking companies carried an oversized amount of revenue last year as the US energy boom ratcheted up demand for oil field equipment, wind turbines, and other outsized freight, and the size of heavy-haul projects and cargo increased.

The 10 largest heavy-haul carriers pushed their combined revenue up 33.3 percent to $2.8 billion, according to a report from transportation research firm SJ Consulting Group. Daseke led the way, nearly doubling its heavy-haul revenue to $925 million through acquisitions.

The strength of energy markets and potential for US infrastructure investment are two factors that will determine how high heavy-haul or specialized trucking revenue will climb in 2019. The availability or lack of resources — particularly specially trained truck drivers — is another.

Dry-van truckload capacity may be abundant, but that’s not the case when it comes to heavy-haul trucking. “There’s not enough truck capacity to meet the demand,” David Ferebee, vice president of sales and marketing for Lone Star Transportation, said last month.

When it comes to oversize, overweight freight, “everytime we figure out how to move it, they make it bigger,” Ferebee told the 2019 JOC Breakbulk & Project Cargo Conference in New Orleans April 29-May 1. The size of the equipment being moved “is pushing the limits,” he said.

Daseke, a transportation holding company that is the parent of Lone Star and 16 other companies, pushed its own limits, acquiring five specialized and heavy-haul flatbed trucking companies in 2018. That helped raise its total revenue 91.3 percent to $1.6 billion.

Landstar leads organic growth

Excluding Daseke, the remaining nine carriers increased heavy-haul revenue 15.4 percent, led by Landstar System, which saw a 22.2 percent increase in revenue from oversized/overweight cargo, SJ Consulting said. The research firm put that revenue at $416 million last year.

The heavy-haul business has been performing well for Landstar this year, even when traditional truckload business is soft, CEO Jim Gattoni said in an April 25 earnings call transcribed by Seeking Alpha. “We always tend to be one of the first guys in when there’s a special project going on,” he said.

Flatbed trucking represents 30 percent of Landstar’s revenue — $1.03 billion in the first quarter and $4.6 billion in 2018 — and specialized trucking revenue about 30 percent of flatbed sales, Gattoni said. With limited capacity, heavy-haul pricing is resistant to spot-like volatility.

Three of the motor carriers — United Vision Logistics, Bennett Motor Express, and Universal Truckload Services — had heavy-haul revenue in the $200-300 million range. Universal increased heavy-haul revenue 20.1 percent, Bennett 19.3 percent, and United 7.7 percent.

Five carriers — Anderson Trucking Service, American Eagle Logistics, Combined Transport, Admiral Merchants Motor Freight, and Acme Truck Line — had between $100 million and $200 million in heavy-haul revenue. Their combined revenue was up $70 million, or 11.9 percent.

Business is blowing in the wind

Heavy-haul carriers will get a lift in 2020 from the increasing viability of wind-based energy production. But the size and weight of shipments are a growing challenge for logistics managers moving wind towers to inland sites, speakers at the JOC breakbulk conference said.

“There are turbine prototypes on tap right now that will be in excess of 160 meters [in length], and we have 120-meter turbines now,” Dan Shreve, head of global wind energy research at Wood Mackenzie, said at the event. “There are enormous challenges moving this equipment.”

That challenge could lead to more collaborative projects linking heavy-haul, over-dimension truck fleets with out-of-gauge railroading. “There’s not enough truck capacity to meet the demand, there’s no question about that,” Lone Star’s Ferebee said. “Trucks can’t do it all.”

Wind turbine shipments are rising in advance of the expiration of US production tax credits in 2023. “We’re moving massive pieces of equipment in a heightened level of activity, said John Lusty, director of energy and utility solutions for Siemens Gamesa Canada.

“[Turbine] manufacturers are racing to get their bids out to market so they can beat their competitors in locking up transportation capacity,” Gene Lemke, vice president of projects at Anderson Trucking Services, the sixth-largest US heavy-haul trucker, said earlier this year.

In January, Lemke told JOC.com his St. Cloud, Minnesota-based company has projects booked through autumn of 2019, and had walked away from some business due to lack of capacity.

Tariffs may prove a heavy-haul headwind

Wind energy may provide a tailwind for heavy-haul truckers, but higher US tariffs may prove a headwind. Tariffs placed on Chinese aluminum and steel are expected to lower the US construction equipment industry’s domestic output, according to IHS Markit.

Heavy construction equipment is a staple cargo for oversize/overweight trucking operations. IHS Markit, the parent company of JOC.com, expects construction equipment output to fall by almost $500 million a year over the next 10 years as a result of US tariffs and trade wars.

Higher-cost steel eventually could dampen construction activity, IHS Markit said in a report prepared for the Association of Equipment Manufacturers. Tariffs will increase costs of producing agriculture and construction equipment 6 percent and mining equipment 7 percent.

As cargo gets bigger and heavier, shippers such as CG Power Systems are looking for ways to balance the weight of what’s being shipped and the equipment used to move it, said Jurgen Huygh, head of outbound logistics and business control for the India-based company.

“We’ve used new technology to lower the weight of the trailers, so they can handle the increased weight of the transformers,” Huygh said at the breakbulk conference. “We need to see more innovation in every area of project cargo,” including the heavy-haul trucking leg.

Contact William B. Cassidy at bill.cassidy@ihsmarkit.com and follow him on Twitter: @willbcassidy.

https://www.joc.com/trucking-logistics/truckload-freight/us-heavy-haul-truckers-build-revenue-face-big-challenges_20190613.html

Your Guide to Driving an Oversized Load Through Indiana

Indiana’s state motto is “Crossroads of America,” which is due to the fact that Indiana has more miles of Interstate Highway per square mile than any other state. If you plan on traversing these highways with an oversized load, you’ll need an Indiana oversize permit. And The Permit Company is here to help.   The…

The post Your Guide to Driving an Oversized Load Through Indiana appeared first on The Permit Company.

Indiana’s state motto is “Crossroads of America,” which is due to the fact that Indiana has more miles of Interstate Highway per square mile than any other state. If you plan on traversing these highways with an oversized load, you’ll need an Indiana oversize permit. And The Permit Company is here to help.

 

The Permit Company takes the hassle out of obtaining oversize and overweight truck permits by working directly with state and local agencies on your behalf. Below is everything you need to know about moving oversized loads through the state of Indiana and how to obtain a permit.

 

1. How long are oversize permits valid for in Indiana?

Single-trip permits are valid for 15 consecutive days.

 

2. What are the legal dimensions for loads in Indiana?

The legal limits in Indiana are as follows:

  • Gross weight: 80,000 lbs. on all roads*
  • Width: 8’6″ on all roads
  • Height: 13’6″ on all roads
  • Length: 40′ for single units on all roads; 45′ for buses on all roads; 65′ for articulating buses on all roads; 53′ for semi-trailers** and load on all roads; 28’6″ for twins and doubles on all roads; 65′ for auto and boat transporters on all roads; 75′ for stinger-steered on all roads; Rocky Mountain doubles, turnpike doubles and triples are not allowed on any roads***; 75′ for saddle mounts on designated highways, 33′ on all other roads

*Bridge Formula applies.

 

**Trailers more than 48’6″ shall have a kingpin setting that does not exceed 40’6″ for trailers manufactured before 12/31/84 and 42’6″ for trailers manufactured before 1/1/85. For trailers manufactured since 1/1/85, the kingpin setting should not exceed 43′. Kingpin distance is measured to the rearmost axle.

 

***Turnpike and Rocky Mountain doubles are allowed on the toll road. A tandem trailer combination shall have a minimum of five axles and a maximum of nine axles. There is no overall length limit. Triples are allowed as long as they are three of the same size (28’6″). There is no overall length limit for triples. Triple trailer combinations should have a minimum of seven axles and a maximum of nine axles. Triples and doubles must get a special permit to run on the tollway, and the weight maximum is 127,400 lbs. Drivers must have a physical exam every two years.

 

The permitted vehicles cannot be operated during the existence of hazardous weather or road and traffic conditions; furthermore, any movement shall not proceed when visibility is less than 500′. Oversized movement shall not be operated at any time when the wind velocity exceeds 25 mph.

 

Drivers going into or coming out of the following ports will be required to have a Transportation Workers Identification Card issued by the Transportation Safety Administration: Evansville, Indiana Harbor and Louisville.

 

3. What are the permit limits for loads in Indiana?

The routine-issue permit limits in Indiana are as follows:

  • Weight:
    • Single: 28,000
    • Tandem: 48,000
    • Tridem: 60,000
  • Gross Weight*:
    • 5 axles: 108,000 on specified configurations
    • 6 axles: 120,000 on specified configurations
    • 7 axles: 120,000 on specified configurations
    • 8 axles: 120,000 on specified configurations
  • Length: 110′
  • Width: 16′
  • Height: 15’

If the load exceeds any of these dimensions or weights, refer to the section on superloads.

 

 

4. Is continuous travel allowed for oversize permits in Indiana?

Loads that are only overweight can travel 24 hours a day, 7 days a week.

 

Loads up to 110′ long, 10′ wide, and 13’6″ high — and with a weight under 200,000 lbs. — will be allowed continuous travel seven days a week.

 

Loads more than 110′ long, 10’–14’4″ wide, 13’6″–15′ high — and with a weight of up to 200,000 lbs. — may travel one half hour before sunrise until one half hour after sunset, seven days a week.

 

For loads exceeding 16′ wide, 15′ high or 200,000 lbs., travel is permitted from 8:30 a.m. to 3:30 p.m., Monday through Friday.

 

The state of Indiana reserves the right to post any road during spring frost.

 

Travel is prohibited on New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

 

Travel is prohibited beginning at noon on the last weekday preceding the holiday and continuing until sunrise of the weekday following the above mentioned holidays.

 

5. When are escorts needed in Indiana?

On all highways:

  • One escort is needed for lengths more than 110′.
  • One escort and one height pole are needed for heights more than 14’6″.
  • A detailed route survey is needed with the application for widths more than 16′.
  • For heights more than 17′, a letter must be secured from utility companies stating their knowledge of the move and approval to disturb aerial lines across the route. If no aerial line exists, you must have a statement that the entire route has been checked and that no utilities will be affected.

On two-lane highways:

  • One front escort is needed for widths 12’4″–14’4″.

  • One front and one rear escort (two in total) are needed for widths 14’4″–17′.

On four-lane highways:

  • One rear escort is needed for widths 12’4″–14’4″.

  • One rear escort is needed for widths 14’4″–17′.

  • Two police escorts needed for widths more than 17′. The fee is $31 per hour and $.044 per mile.

 

6. What is a superload in Indiana?

Superloads are loads more than 16′ wide, 15′ high, 110′ long and 120,000 lbs.

  • Companies will be required to submit one original M-233 form with the permit application.
  • Permits will be issued via the telephone. The company will receive the permit number, fee expiration date and special provisions in that manner.
  • Companies will receive special provisions sheets, a copy of which must be attached to the permit that will be held in the truck. The company will type the numbers of the provisions that apply in the Special Provisions box on its copy of the permit.
  • Loads over 130′ will require a route survey if the load does not have a rear-steerable dolly.
  • Other movements generally do not require a route survey; however, it could be required upon specific request.
  • A traffic control letter is only required if the application has a slowdown on an Interstate, which will require police escort.
  • 24-hour notice is no longer required. The company must notify INDOT that the movement is taking place prior to the movement.
  • Companies may fax changes on superload applications to the Permit Section.
  • Drawings of the load are only required if the load exceeds 17′ in height.

 

If the load is only oversized, permits are $40 plus $10 executive approval. Overweight permits are $20, plus 60 cents per mile if the load weighs 108,001–150,000 lbs. Loads weighing 150,000 or more are $1 per mile plus the design review fee. There is also a $25 executive approval fee, $10 administrative fee and a $10 per-bridge fee.

 

Permits for superloads weighing more than 200,000 lbs. will take five to seven days to process.

 

Allow two weeks for processing applications.

If you need help with getting an oversize permit in Indiana, or have a question about permits in any other states, give us a call at (800) 359-9407 or send us an email.

The post Your Guide to Driving an Oversized Load Through Indiana appeared first on The Permit Company.

https://www.permitcompany.com/news/your-guide-to-driving-an-oversized-load-through-indiana/

6 Frequently Asked Questions About Oversize Permits in Kansas

“Toto, I’ve a feeling we’re not in Kansas anymore.” In 1939, Judy Garland uttered this line, which has become one of the most famous lines in cinematic history. But what happens when you are in Kansas, and you’re driving an oversized load? If you find yourself driving through Tornado Alley and need assistance with obtaining…

The post 6 Frequently Asked Questions About Oversize Permits in Kansas appeared first on The Permit Company.

“Toto, I’ve a feeling we’re not in Kansas anymore.” In 1939, Judy Garland uttered this line, which has become one of the most famous lines in cinematic history. But what happens when you are in Kansas, and you’re driving an oversized load? If you find yourself driving through Tornado Alley and need assistance with obtaining an oversize permit in Kansas, The Permit Company is here to help.

 

The Permit Company takes the hassle out of obtaining oversize and overweight truck permits by working directly with state and local agencies on your behalf. Below is everything you need to know about moving oversized loads through the state of Kansas and how to obtain a permit.

 

1. How long are oversize permits valid for in Kansas?

Single-trip permits are good for one trip (seven travel days).

 

2. What are the legal dimensions for loads in Kansas?

The legal limits in Kansas are as follows:

  • Gross weight: 80,000 lbs. on designated interstate highways and 85,500 on all other roads*
  • Width: 8’6” on all roads
  • Height: 14’ on all roads
  • Length: 45’ for single units and buses on all roads; 59’6” for semi-trailers on all roads; 28’6” for twins and doubles on all roads; 75’ for autotransporters on all roads; 125’ for Rocky Mountain doubles, turnpike doubles and triples on all roads; 75’ for saddle mounts with a maximum of three units on all roads

*Bridge Formula applies.

 

Rocky Mountain doubles, turnpike doubles and triples are allowed on turnpikes of up to 125’ long.

 

The weight on any group of axles is limited by the Bridge Formula. Tandem axles with centers
less than 40” apart are counted as one axle.

 

3. What are the permit limits for loads in Kansas?

The routine-issue permit limits in Kansas are as follows:

  • Weight:
    • Single: 22,000
    • Tandem: 45,000
    • Tridem: 60,000
    • Quad: 65,000
  • Gross Weight*:
    • 5 axles: 95,000
    • 6 axles: 110,000
    • 7 axles: 150,000
    • 8 axles: 150,000
  • Length: 126′
  • Width: 16’6″
  • Height: Based on clearances; loads more than 17’ high must notify utility company

If the load exceeds any of these dimensions or weights, refer to the section on superloads. The maximum weight that the state allows you to register on your IRP cab card is 85,500 lbs.

 

Contact your IRP base state to increase your weight or to increase the weight on the permit weight space. The increase is valid for 72 hours.

 

4. Is continuous travel allowed for oversize permits in Kansas?

Continuous travel is allowed one half hour before sunrise to one half hour after sunset, seven days a week, 365 days a year. There are no movement restrictions on holidays.

 

There are no state restrictions for loads that are only overweight, but the Federal Bridge Formula applies.

 

5. When are escorts needed in Kansas?

On highways of less than four lanes:

  • One front and one rear escort (two in total) are needed for widths more than 14’. The rear escort may be eliminated if a warning light is attached to the top of the towing vehicle and to the rear of each load, and is mounted 2’–8’ above the surface of the road.

On all highways:

  • One front and one rear escort (two in total) are needed for mobile homes more than 12’6” wide. On four-lane highways, the mobile home needs an 8” amber flashing light attached to the top of the power unit and another to the top rear of the mobile home being towed.

  • One front and one rear escort (two in total) are needed for superloads with widths more than 16’6” or heights more than 18’. Qualifying superload vehicles include, but are not limited to, houses, barns, sheds, granaries and storage tanks.

  • One front and one rear escort (two in total) are needed for widths more than 14’ on the KS Turnpike.

Pilot car certifications are not required in Kansas.

 

6. What is a superload in Kansas?

Anything that exceeds the following requires a bridge analysis: 18’ high, 16’6” wide, 126’ long or 150,000 lbs. Call 785-271-3231 to schedule your analysis.

 

Applications for superloads must be submitted at least 10 days prior to the desired date of movement.

 

If you need help with getting an oversize permit in Kansas or have a question about permits in any other states, give us a call at (800) 359-9407 or send us an email.

The post 6 Frequently Asked Questions About Oversize Permits in Kansas appeared first on The Permit Company.

https://www.permitcompany.com/news/6-frequently-asked-questions-about-oversize-permits-in-kansas/

Everything You Need to Know About Driving Oversized Loads Through Utah

Not only is Utah home to five National Parks and several other National Monuments and Sites, but it’s also home to some transportation history. The world’s first transcontinental railroad was completed in Promontory where the Central Pacific and Union Pacific Railroads met. To see this now National Historic Site while driving an oversized load through…

The post Everything You Need to Know About Driving Oversized Loads Through Utah appeared first on The Permit Company.

Not only is Utah home to five National Parks and several other National Monuments and Sites, but it’s also home to some transportation history. The world’s first transcontinental railroad was completed in Promontory where the Central Pacific and Union Pacific Railroads met. To see this now National Historic Site while driving an oversized load through the state, you’ll need an oversize permit in Utah, which is where The Permit Company comes in.

 

The Permit Company takes the hassle out of obtaining oversize and overweight truck permits, working directly with state and local agencies on your behalf. Below is everything you need to know about moving oversized loads through the state of Utah and how to obtain a permit.

 

1. How long are oversize permits valid in Utah? 

Single trip permits are valid for four consecutive days or 96 hours.

 

2. What are the legal dimensions for loads in Utah?

The legal limits in Utah are as follows:

  • Gross Weight: 80,000 lbs. on all roads
  • Width: 8’6” on all roads
  • Height: 14’ on all roads
  • Length: 45’ for single units and buses on all roads; 53’ for semi-trailers on all roads; 61’ for both trailers of cargo and cargo carrying twins and doubles on designated highways and 81’ on all other roads; 75’ for autotransporters and stinger steered on all roads; 95’ combined trailer length for turnpike doubles, triples, and cargo and cargo carrying Rocky Mountain doubles on designated highways and 81’ for combined trailer length on all other roads; 75’ for saddlemounts on designated highways and 95’ for three-unit saddlemounts on all other roads.

Federal Bridge Formula applies.

 

3. What are the permit limits for loads in Utah?

The routine-issue permit limits in Utah are as follows:

  • Weight:
    • Single: 29,500
    • Tandem: 50,000
    • Tridem: Bridge Formula
    • Quad: Quads must be cleared through the Department of Transportation (DOT)
    • Trunnion: Bridge Formula applies
  • Gross Weight*:
    • 5 axles: 100,000
    • 6 axles: 136,750
    • 7 axles: 148,500
    • 8 axles: 186,750
  • Length: There is no maximum length. If the road can handle the length, then the permit will be issued. Loads more than 105′ in length need to be sent in for review**.
  • Width: Anything more than 14’6” requires review**.
  • Height: Anything more than 14’6” requires review**.

*These are just guidelines. The gross weight depends on your axle spacing and axle configurations. DOT will decide if these weights are permissible. Anything weighing more than 125,000 lbs. or the maximum allowed for a group, and the permit must go to bridge for analysis.

**Loads up to 14’6” wide, 14’6” high, 105’ long and with a gross weight of 125,000 lbs. or under should automatically be issued a permit.

If load exceeds any of these dimensions or weights, refer to the section on super loads.

 

4. Is continuous travel allowed for oversize permits in Utah?

Continuous travel is allowed one half-hour before sunrise to one half-hour after sunset seven days a week. You may travel 24 hours a day, seven days a week with loads 10′ wide (on all highways with proper lights and flags on all extremities), 105′ long and 14′ high. Loads 10’ to 12’ wide or 105’ in length may move on secondary highways at night with two certified pilot escorts. Loads 10’ to 14’ wide or exceeding 105’ in length may move at night with one certified pilot escort. Loads exceeding 14’ in height must have approval from UDOT.

Travel is prohibited for loads exceeding 10′ wide, 14′ high or 105′ long on New Year’s Day, Memorial Day, Independence Day, Labor Day, Pioneer Day, Thanksgiving Day and Christmas Day.

 

5. When are escorts needed in Utah?

On all secondary highways:

  • 1 front escort needed for widths 12’-14’
  • 1 front and 1 rear escort (2 total) needed for widths 14’-17’
  • 1 front and 1 rear escort plus two police vehicles (4 total) needed for widths more than 17’
  • 1 rear escort needed for lengths 105’-120’
  • 1 front and 1 rear escort (2 total) needed for lengths more than 120’
  • 1 front with height pole and 1 rear escort (2 total) needed for heights 16’-17’6”
  • 1 front and 1 rear escort plus police vehicle (3 total) needed for heights more than 17’6”*
  • 1 front and 1 rear escort (2 total) needed for vehicles that cannot maintain the minimum posted speed
  • 1 front or rear escort needed for vehicles with an overhang of 20’ or more

On roads with four lanes or more:

  • 1 rear escort needed for widths 14’-16’
  • 1 front and 1 rear escort (2 total) needed for widths more than 16’
  • 1 rear escort needed for lengths 120’ or more
  • If the weight of the load is such that it cannot maintain the minimum safe speed (45 mph), an “Oversize Load” sign is needed. The sign should be 7′ x 18″ on a yellow background with black letters that are 10″ high in 1 5/8″ brush strokes.
  • 1 front and 1 rear escort (2 total) needed for heights 16’-17’6”
  • 1 front and 1 rear escort plus police vehicle (3 total) needed for heights more than 17’6”*
  • 1 front and 1 rear escort (2 total) needed if the height keeps the vehicle from maintaining the minimum posted speed
  • 1 escort needed if overhang is more than 20’

*Must notify utility companies for heights more than 17’6”.

Utah escort certification has reciprocity with any state that has an accredited course and issues a certification card.

State programs accepted include: Ariz., Colo., Fla., Minn., N.C., Okla., Va. (issued after 1/1/2014 only for eight-hour training), and Wash.

Notes:

  1. Utah requires a written test and classroom training for escorts.
  2. Utah DOT may require escort vehicles at its discretion when sight distance is deficient or when the route requires it for safety reasons (i.e. – turning and twisting on canyon roads).
  3. Front escorts must use height pole more than 16′ high.
  4. State police will require 48-hour advance notice. Contact 801-965-4518 for assistance.

6. What is a super load in Utah?

Super loads are generally considered to be anything more than 17′ wide, 17’6″ high and 125,000 lbs. gross weight. The state considers any load requiring bridge analysis and special routing to be a super load. Diagrams of axle spacings and weights are required along with the routes you plan to travel.

Applications are usually processed within one day, but if it is an extremely large or heavy load, it may take up to 48 hours.

Loads in excess of 17′ wide, 17’6″ high or 175′ in length require police escorts. Some secondary routes require police escorts for smaller loads. For more information, check the secondary highway restrictions.

If you need help getting an oversize permit in Utah or have a question about permits in any other states, give us a call at (800) 359-9407or send us an email.  

The post Everything You Need to Know About Driving Oversized Loads Through Utah appeared first on The Permit Company.

https://www.permitcompany.com/news/everything-you-need-to-know-about-driving-oversized-loads-through-utah/