Running on Ice: Getting into the AIM Act

All thawed out

It’s the end of the year, which means it’s that much closer to the Jan. 1 implementation of the American Innovation and Manufacturing Act. Aim authorizes the Environmental Protection Agency “To address HFCs [hydrofluorocarbons] by: phasing down their production and consumption, maximizing reclamation and minimizing releases from equipment, and facilitating the transition to next-generation technologies through sector-based restrictions on HFCs.”

This act is intended to reduce HFC emissions by 30% over the next three years and has three pillars: HFC phasedowns, reclamation and minimization, and sector-based transitions.

HFC phasedown is a balanced allocation program that decreases the production and consumption of HFCs.

Reclamation and minimization will encourage recovery of refrigerants and cut HFC emissions from existing equipment.

Sector-based transitions will guide specific industries toward adopting next-generation refrigerants and technologies, following defined timelines to ensure a smooth transition.

This whole process is expected to take place over the course of three years: Jan. 1, 2025, to Jan. 1, 2028. This rollout method will impact industries a little differently. Guidelines will differ based on refrigerant charge size. For example, supermarkets using large refrigeration systems with a charge exceeding 200 pounds must abide by stricter rules than, say, a restaurant walk-in cooler or freezer. Nonrefrigeration applications of HFCs, like those used in blowing agents in manufacturing insulation foams, will also be affected by the regulations.

The general consensus is that self-contained refrigeration systems will be the first impacted industry. Unfortunately, that means cold storage warehouses and aspects of the supply chain will be the first to adopt these changes and the costs associated with the transition.

The transition is expected to bring a 20%-40% increase in expenses related to new refrigerants and technologies. This accounts for upgraded system components, enhanced reporting requirements and annual reporting expenses to the EPA.

Food and drug

The National Frozen & Refrigerated Foods Association recently announced the winners of its first-ever Penguin Pitch. Essentially it’s a contest for emerging brands to help find the next big name in frozen and refrigerated foods. This year’s finalists had mozzarella sticks, frozen bao buns, frozen waffles and a twist on pizza rolls, to name a few.

The winner of Overall Excellence is Big Mozz giant mozzarella sticks. What makes these sticks different from the traditional ones in the freezer aisle is the cleaner label, the size and the overall taste. The company’s top market is food service; the sticks are in Yankee Stadium.

CEO and Founder Matt Gallira said in an interview on the From the Cold Corner podcast, “What is succeeding in frozen is premium. There’s more brand discovery happening in frozen than there ever has been. We’re a premium corner of a subset of frozen handhelds and appetizers. We make a premium mozzarella stick – and that’s it – but I would love to see more premium branded items start to appear in the frozen set because a rising tide lifts all boats.”

The company is debuting two new flavors: super ranch, which is available at Whole Foods, and a Flamin’ Mozz, which is in the New York tristate area.

Cold chain lanes

This week’s market under a microscope is Portland, Oregon, in the Pacific Northwest. Portland is keeping plenty cold, with reefer outbound tender rejections climbing to 44.09% a 1,317-basis-point increase week over week. On the same trajectory are reefer outbound tender volumes, which are up 73% w/w. To say Portland is experiencing a capacity crunch would be an understatement.

Before the spike, the Reefer Outbound Tender Reject Index was at 22.42%, which is already a strong signal of an inflationary market. The likely culprit for the increase in rates is the Christmas tree market. Oregon is one of the top producers of Christmas trees, and most are shipped on reefer trailers. Shippers should take this influx of demand as a sign to book loads out further and be prepared to pay more for spot loads.

Is SONAR for you? Check it out with a demo!

Shelf life

Carrier sponsors World Cold Chain Symposium 2024 to help build a global sustainable cold chain

‘Emerging’ B.C. family cooks up something special in the frozen meals business

CPKC, Americold exploring co-development opportunities in Mexico

Premier Nutrition, Hometown Food Co. launch frozen breakfast line

Wanna chat in the cooler? Shoot me an email with comments, questions or story ideas at moconnell@www.freightwaves.com.

See you on the internet.

Mary

If this newsletter was forwarded to you, you must be pretty chill. Join the coolest community in freight and subscribe for more at www.freightwaves.com/subscribe.

West Virginia trucking company files for bankruptcy

A West Virginia-based trucking company, which hauls coal, logs and wood chips, recently filed for bankruptcy.

Cedar Trucking Co. of Glasgow, West Virginia, filed its Chapter 11 petition Tuesday in the U.S. Bankruptcy Court for the Southern District of West Virginia.

In the seven-page bare-bones petition, Cedar Trucking, which seeks to reorganize, lists its assets as between $500,000 and $1 million, and liabilities as between $1 million and $10 million. The trucking company states that it has up to 49 creditors and maintains that funds will be available for distribution to unsecured creditors once it pays administrative fees.

Robert Keenan, who is listed as the president of Cedar Trucking, is representing himself pro se in the bankruptcy case. FreightWaves has reached out to Keenan for comment.

According to the Federal Motor Carrier Safety Administration’s SAFER website, Cedar Trucking has 22 drivers and the same number of power units. It obtained its common and contract authority in March 2020. The company’s bodily injury property damage coverage insurance remains active, according to FMCSA.

No reason was given as to why the company is seeking bankruptcy protection. However, in October, Cedar Trucking listed a number of 2018 Peterbilt tractors for sale on its Facebook page.

Among the largest creditors with unsecured claims against Cedar Trucking are the West Virginia Tax Division, owed nearly $1.1 million in payroll and other taxes; the Department of Treasury in Wheeling, West Virginia, owed nearly $305,500 in payroll and other taxes; and Workforce West Virginia in Charleston, owed nearly $18,000 for unemployment benefits.

The company’s trucks had been inspected 39 times, and six had been placed out of service in a 24-month period, resulting in a 15.4% out-of-service rate. This is lower than the industry’s national average of around 22.3%, according to FMCSA.

The trucking company’s drivers had been inspected 47 times over the same 24-month period, with none of its drivers being placed out of service. The national average is around 6.7%, according to FMCSA.

In the past two years, the company’s trucks had been involved in one injury crash and one tow-away.

U.S. Bankruptcy Judge B. McKay Mignault has ordered Keenan and Cedar Trucking to submit the company’s schedules of assets and liabilities as well as the company’s statement of financial affairs with the court no later than 14 days after filing the voluntary Chapter 11 petition on Tuesday.

Cedar Trucking’s small business plan and its disclosure statement are due by June 9, 2025. A creditors meeting has not been scheduled.

Black lung suit

In July 2020, U.S. District Court Judge Joseph R. Goodwin entered a default judgment against Cedar Trucking, awarding nearly $50,000 to one of its former coal drivers, William D. Ramsey. Cedar Trucking had previously been ordered by the U.S. Department of Labor to pay Ramsey for black lung benefits. Goodwin also ordered Cedar Trucking to pay attorney fees of nearly $12,400 to Leonard J. Strayton, who represented Ramsey in the civil action. In September 2022, Stayton filed an application for post-judgment remedies in District Court against Cedar Trucking for his legal fees and to pay Ramsey’s judgment. The docket hasn’t been updated to reflect whether Cedar Trucking paid the court-ordered judgment and attorney’s fees.

Do you have a news tip or comment to share? Send an email to Clarissa Hawes or message @cage writer on X, formerly Twitter. Your name will not be used without your permission.

Freight Essentials files RICO lawsuit against shipping giants | WHAT THE TRUCK?!?

On Episode 784 of WHAT THE TRUCK?!?, Dooner is talking about a RICO lawsuit filed by Freight Essentials against WWEX Group. It alleges the companies that make up WWEX, including Worldwide Express, GlobalTranz and Unishippers, defrauded consumers and small-business owners by charging hidden fees related to fuel costs and cargo insurance. We’ll find out from Freight Essentials CEO Dylan Admire why he thinks he has a case.

Armchair Attorney Matthew Leffler takes a deeper look at the case and lends his point of view.

CNBC’s Lori Ann LaRocco teams up with DHL to bring more opportunities to the Pollee and Rose Allen School of Logistics and Trade. DHL’s Go Teach seminars will now be in the U.S. through LaRocco’s nonprofit for students ages 16-24. LaRocco is joined on the show by DHL’s Robert Reiter.

Freight fraud and cargo theft have been the story of the year. Truckstop’s Lisa Haubenstock talks about the biggest security risks in supply chain.

Plus, Trump stands against port automation; DOGE needed now for truck parking; SONAR adds AI; how not to strap a Christmas tree; and more.

Catch new shows live at noon EDT Mondays, Wednesdays and Fridays on FreightWaves LinkedIn, Facebook, X or YouTube, or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player and at 5 p.m. Eastern on SiriusXM’s Road Dog Trucking Channel 146.

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Apparel importers call for labor talks to resume, say port automation ‘vital’

Apparel and footwear importers on Friday called for a resumption of port labor contract talks after President-elect Donald Trump publicly backed the East Coast longshore union.

“We welcome President-elect Trump’s commitment to strengthening United States ports and appreciate his efforts to meet with the International Longshoremen’s Association (ILA) President Harold Daggett and Executive Vice President Dennis Daggett,” said American Apparel & Footwear Association Chief Executive Steve Lamar, in a statement. “This is a crucial time for the longshoremen and the employers to negotiate a fair and equitable labor contract with the United States Maritime Alliance (USMX) for the East and Gulf Coast ports before the master contract expires Jan. 15.

“The longshoremen serve as the front lines of our supply chains and are essential to our economy. We applaud their hard work.”

Trump on Thursday in a social media post backed the union’s fight against port automation after meeting with ILA leadership.

The ILA broke off contract talks last month as employers sought to include semiautomated container cranes in a new pact, saying the USMX was trying to eliminate union jobs. Employers countered that automation technology is needed to make box handling at ILA ports more globally competitive, which would in turn create jobs.

The trade group, which counts New Balance, Ralph Lauren (NYSE: RL), Lululemon (NASDAQ: LULU), Carhartt and Under Armour (NYSE: UA) among its members, called on both sides to return to bargaining.

“We urge the ILA to formally return to the negotiating table to finalize a contract with USMX that builds on the well-deserved tentative agreement of a 61.5% salary increase. Like our messages to President Biden, we urge President-elect Trump to continue his work to strengthen U.S. docks — by meeting with USMX and continuing work with the ILA — to secure a deal before the Jan. 15 deadline with resolution on the issue of automation.”

The importers sought a middle ground, pointing out that the union has expressed its willingness to adopt some new technology while still protecting jobs.

“The current contract allows for semi-automation and stipulates that no jobs or hours be lost due to technology. We feel that semi-automation is vital to ensure efficient and safe U.S. ports, attract new investments, create new U.S. longshoremen jobs, and grow the U.S. economy.”

The statement claimed that another port strike could cost $4.5 billion to $7.5 billion in economic activity each week.

The three-day ILA strike in October caused container handling backlogs that lasted over a month, the group said, and another disruption would hinder imports of vital goods such as pharmaceuticals and damage U.S. exports of produce and other food products.

“In short, a disruption would threaten millions of American jobs, including 3.5 million Americans directly employed by our industry, further raise prices for every hardworking American family already suffering under high inflation, and threaten the growth of the U.S. economy itself.

“We look forward to President-elect Trump’s continued leadership on the East and Gulf Coast port labor negotiations to get a deal done before Jan. 15, so we avoid a major disruption to the American economy ahead of his inauguration on Jan. 20.”

Find more articles by Stuart Chirls here.

Related coverage:

Trump backs ILA in port labor standoff

Freightos sees trans-Pacific container rates ease

Jaxport adding more global container services in 2025

The technology behind making carrier payments instant

The freight industry has long relied on factoring to ensure carriers get paid quickly. Despite its consistent presence in the industry, however, the factoring landscape hasn’t seen many meaningful changes since its inception.

Payments still regularly get held up on the way to carriers, with banking transfers often causing frustrating delays. This is especially true during weekends and holidays, when a transaction that should take minutes can stretch into days.

“Our financial system has a number of bottlenecks, and transfers between banks are one of the most painful for small businesses,” explains Marcus Womack, CEO of Outgo. “When a factoring company sends money to a carrier, funds can get hung up between banks for days. If you actually want to deliver on the dream of instant payments, you have to bring banking¹ and factoring together.”

Combining banking infrastructure with automation and A.I. enables instant payments

Outgo has invested heavily in technology in order to eliminate common funding delays. By combining factoring services with a comprehensive banking¹ suite, Outgo enables payments to move within the same banking system. This process eliminates the need for interbank transfers, slashing payment times from hours – or even days – to mere seconds.

Traditional factoring involves multiple time-consuming steps to get from invoice submission to bank transfer completion. By contrast, Outgo’s streamlined system uses automation and AI to cut straight to payment approval and disbursement.

“We integrate AI and automation into our entire invoice lifecycle,” said Mike Bohlander, Outgo CTO and Co-Founder. “For example, we use AI to automate the extraction of relevant information from load documents like ratecons and BOLs, which enables us to make faster funding decisions.”

A closer look at the technology remaking factoring

Outgo’s innovations don’t stop at combining banking¹, factoring, and AI. The company has also introduced Smart Factoring, a transformative advance in cash flow management.

The centerpiece of this technology allows carriers to break down invoices and factor only the amount they need. This is a significant departure from traditional factoring, where carriers must factor entire invoices, even if they only need a small fraction to fund operating expenses.

Benefits for carriers include:

Price: Outgo’s software allows it to reduce steps in the process and increase other efficiencies. By shrinking its own costs, Outgo can pass the savings on to its customers.
Speed: Instant access to funds: With Outgo’s debit card, carriers can access their funds immediately (24/7), while also enjoying reduced fees of just 1% when using the card.
Flexibility: Outgo’s platform enables carriers to factor exactly what they need, avoiding unnecessary costs. For example, if a carrier has a $3,000 invoice but needs just $300, they can factor that precise amount through Outgo’s system.

By providing tools that enable smarter cash flow decisions, Outgo not only accelerates payments but also gives carriers control over how and when they use their funds.

Looking ahead: A future with instant payments and more

Each month, the number of invoices processed in just seconds increases, but the future of factoring with Outgo will be more than faster funding speeds. It will also include innovations like instant advances and driver solutions, which will further reduce delays and improve cash flow for carriers and drivers alike. As the company continues to innovate, carriers can look forward to an all-in-one financial platform that truly meets the demands of modern logistics.

Click here to learn more about Outgo.

¹Outgo Inc is a financial technology company, and is not a bank. Banking services provided by TransPecos Banks, SSB, Members FDIC. The Outgo Business Visa Debit Card is issued by TransPecos Banks, SSB, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa is accepted.

C.H. Robinson speaks to investors – and Wall Street’s support soars anew

NEW YORK – The biggest hit on Broadway Thursday was the CEO of C.H. Robinson.

It was not only David Bozeman’s first investors day event in New York as CEO of the 3PL, a position he assumed in June 2023, but it also was C.H. Robinson’s first such gathering in seven years and featured the company ringing the opening bell on Nasdaq.

Based on the reaction among investors, the message that Bozeman and other members of C.H. Robinson’s (NASDAQ: CHRW) management team delivered resonated strongly.

The stock price for the biggest U.S.-based 3PL was up 4.52% Thursday, a gain of $4.93 to $114.06. That number is just below the 52-week high recorded earlier in the day at $114.68. On Friday, the stock was down a little less than 1% in early trade.

Since a surprise strong earnings report for the first quarter sent the company’s stock soaring on May 1, stunning a large number of traders who had a big short position in C.H. Robinson stock that suddenly needed to be covered, gains since then are hovering near 60% to date.

Projections on incremental operating income

Some of what Bozeman and his team told the investors were hard numbers. In an interview with FreightWaves following the event, Bozeman said the day’s program had saved CFO Damon Lee for last to drive home the company’s forecast that by 2026, “we’re going to drive between $350 million and $450 million in incremental operating income.”

Lee was the last presenter at the closed meeting, after the investors had heard Bozeman and other executives discuss the future. “I think there was some believability after we got to two hours, ultimately culminating in this,” Bozeman said.

For the nine months through Sept. 30, C.H. Robinson recorded operating income of $485.3 million. In a tough 2023, operating income was $514.6 million.

Earnings calls with Bozeman have tended to focus on cost-cutting and technology improvements. But at the investors meeting and in the interview, Bozeman talked about market growth – in particular, grabbing back market share in the small and midsize business sector.

“We laid out a growth story to say, how are we going to grow and what are we leaning into?” Bozeman told FreightWaves. He added that C.H. Robinson largely ceded the SMB market to other companies in 2018-2019, “and we showed a path to say, this is why we’re going to go after the SMBs.”

Targeting smaller companies, once again

The move several years ago to focus less on SMBs, Bozeman said, was concurrent with the rise of digital brokerages.

“At that time, the company made a decision when they were faced with an onslaught of digital entrants,” Bozeman said. The plan was to try to match those efforts with C.H. Robinson’s own digital brokerage tools, but Bozeman said those offerings “weren’t that good, with poor service, which is not what Robinson is known for. Our SMB customers did not like that, and they went elsewhere.”

Only about 5% of C.H. Robinson’s bookings then were fulfilled digitally, Bozeman said.

That figure now is about 50%, Bozeman said, and “we know our technology is that robust and it’s market-leading, so you get a great experience at a much higher digital booking that is going to help drive part of our growth story, because it also helped us with our productivity story as well.” Current year-on-year growth rates in the SMB sector are in the single digits, he said.

Bozeman did not mention another change in the landscape: Many of those digital offerings have struggled, with Convoy closing last year and Uber Freight (NYSE: UBER) still trying to find consistent profitability.

The renewed push into SMBs is not the only strategic move Bozeman discussed at investors day. (The event was closed to the media but was the focus of the interview with FreightWaves.)

Other paths to growth

The “second growth story” discussed at the gathering, Bozeman said, was an increasing push in several “verticals” where C.H. Robinson sees opportunities. He cited energy, health care, retail and automotive, “where we’re going up the value stack to get more total addressable markets.”

Moving somewhat to a more asset-based model is one of the strategies the company will pursue in those verticals, Bozeman said. Specifically, the 3PL has a trailer pool of more than 2,000 units and access to more than 10,000 with various partners. “That allows Robinson to show up like an asset, but we don’t have the costs like an asset,” he said.

C.H. Robinson has had numerous rounds of job cuts during Bozeman’s time, and before. Asked if the layoffs at C.H. Robinson were “done” – as much as changes in head count at a company can ever be done – Bozeman described personnel decisions as a “continuum. When you’re into a lean operation, nobody ever stops.”

But Bozeman said several times during the interview that cost-cutting can only go so far on the road to greater profits, and he returned to the long-term theme that has dominated the company’s earnings calls: technology gains.

Bozeman reiterated Friday in an interview with CNBC his emphasis on the gains that AI in general and generative AI in particular can give to a company like C.H. Robinson. The goal is increased productivity, which he said is best measured by shipments per person per day. C.H. Robinson saw gains of 15% in that benchmark last year and expects to do that this year, Bozeman said.

Bozeman characterized such points as “physicals” and said they were “evergreen.” “We’ve changed the physical cost structure of what we’re doing,” he said.

The surge in C.H. Robinson’s stock was accompanied by several analyst reports reflecting the support that led to the higher equity price. For example, Jason Seidl said at TD Cowen that he was raising his firm’s earnings per share on C.H. Robinson to $4.90 for next year from $4.80 and to $5.80 from $5.50 in 2026.

Adjusted EPS for C.H. Robinson last year was $3.30.

Increasing the NAST operating margin

Prior to the meeting, the transportation research team at Wells Fargo said technology changes being implemented at C.H. Robison should drive a return to an operating margin of 40% at its North American Surface Transport segment, which is where its brokerage activities are based. In the fourth quarter, NAST operating margin was 35.4%.

Asked if that 40% target was reachable, Bozeman said, “We’re going to do that.” A 40% margin would be about the middle of what C.H. Robinson described as “midcycle,” or a market bounce that is solid but not spectacular, while the company would be higher than that if the market was “high cycle.”

With the recent record of layoffs, TD Cowen’s Seidl summed up the message given in the investor meeting about head count: “an approach that blends human oversight with matching technology … another sign that the industry is stepping away from a tech exclusive platform. Customized service is back in focus.”

Bozeman stressed that human element in the interview. “You can’t solve a trailer on fire or a flat tire with the wrong equipment” with technology alone. “People get on the phone and say, ‘I need this fixed.’ So we’ve got that balance to say we’re going to have people who are really good with what they do enabled by a tech stack that is the best in the industry.”

Other notable observations by Bozeman in the interview.

It was not in on the bidding for Coyote Logistics, ultimately won by another big publicly traded 3PL, RXO. (NYSE: RXO). Bozeman also sounded like acquisitions were not high on the C.H. Robinson agenda. “There’s a lot of value that we can drive in this company now before I get to the point where I’ve got to go external,” he said. “It’s not my priority right now.”

C.H. Robinson’s improved fiscal performance is not coming from a lift generated by the market. A succinct “no” was Bozeman’s response when asked how much the freight market is helping fiscal conditions at NAST. However, he did say improved conditions in the ocean freight market had given a boost to its Global Forwarding segment.

More articles by John Kingston

For the first time in years, C.H. Robinson’s debt rating is downgraded by S&P Global

C.H. Robinson CEO Bozeman makes earnings call debut after tough Q2

C.H. Robinson executive highlights promise of generative AI in logistics

Proterra’s surviving businesses may shed bankruptcy stigma

The stigma of going through bankruptcy is real, whether personal or corporate. But sometimes, it turns out OK. Consider Proterra Inc., a maker of electric transit buses, battery packs and a developer of charging infrastructure.

Several startups in the electrification space ran out of financial runway. They either disappeared or were absorbed by other companies. Proterra’s electric transit bus business tasted early success after launching in 2004. Investors like automaker General Motors’ venture arm were early supporters.

Proterra’s expansion into battery making and charging infrastructure in the past decade was expensive. And the bus business gobbled up much of the $640 million raised in a 2021 reverse merger with special purpose acquisition company ArcLight Clean Transition Corp.

Proterra took on a lot of debt during the pandemic. It was forced to pay sky-high prices for scarce components and supplies. Ultimately, loan covenants that limited its ability to raise more capital hastened its Chapter 11 bankruptcy reorganization filing in August 2023.

Up for bankruptcy auction

That put Proterra’s three business units – Transit, Powered and Energy – up for bankruptcy auctions. The battery business brought $210 million from Sweden’s Volvo Group in November 2023. The transit bus business was sold for $10 million to Phoenix Motor Inc., which did business as Phoenix Motor Cars until rebranding as PhoenixEV in June.

The infrastructure business called Proterra Energy landed with Anthelion Capital. Anthelion raised $200 million for Proterra in 2020. The sustainability-focused private equity fund with $1.4 billion in assets got repaid in cash in the bankruptcy workout and picked up Proterra Energy for $10 million.

Battery and bus businesses mute

Phoenix did not respond to an email or call seeking comment on the integration of Proterra Transit into its existing medium-duty electric bus business. In a June news release, the company said it “is now capable of offering combined solutions for various classes and applications in the commercial fleet, school and transit markets.”

However, Phoenix (NASDAQ: PEV) faces delisting from the Nasdaq as soon as January because its share price has not met the exchange’s $1 trading threshold since early October. It closed Wednesday at 33 cents a share.

Volvo, meanwhile, kept the Proterra name for the battery business. CEO Chris Bailey referred questions about battery business progress to its new parent. Big customers like Daimler Truck North America’s Thomas Built Buses and Freightliner Custom Chassis Corp. (FCCC) units stayed with Proterra despite being charged more.

FCCC is based in South Carolina, where Proterra’s major battery facility is located. Thomas Built Buses is headquartered in High Point, North Carolina.

Proterra’s battery-making facility in Greer, South Carolina, now owned by Sweden’s Volvo Group, is said to be humming with activity following bankruptcy reorganization in November 2023. (Photo: Proterra)

Camber: More than a bend in the road

Brendan Harney, who ran Proterra Energy before bankruptcy, spoke positively about Anthelion.

Brendan Harney spent three years at Proterra before becoming CEO of the
post-bankruptcy entity called Camber. (Photo: Camber)

“A number of private equity folks were engaged in the Chapter 11 process,” he told me. “Anthelion Capital had been an investor in Proterra, so there was an existing relationship there that was helpful. They understood the market thesis as well in terms of growth and opportunity. They knew that Proterra Energy had been a successful business within Proterra.”

Private equity is not always patient equity. How long will Anthelion wait for its bankruptcy acquisition, now called Camber, to succeed in its growth strategy?

“I asked that very question of them, and they are patient investors,” Harney said. “They are focused on sustainability. They have a thesis within the space and it ranges across the spectrum for sustainable investments, but they want to see this grow and be profitable.”

Anthelion owns 100% of Camber, so it could seek a merger partner or sell the business. Harney doesn’t see either happening.

“They’ve been supportive of our growth,” he said. “We’ve been adding to the team this year.”

Camber can paint on a larger canvas

Predating bankruptcy, Proterra Energy installed 1,500 direct-current fast chargers for commercial vehicles – and the software platform that manages them. Camber inherited both.

A Camber-branded charging installation (Photo: Camber)

“A lot of the relationships went with us, both suppliers [and] customers,” Harney said.

As part of Proterra, the energy business was limited to supporting Proterra customers partly due to limited resources. As an independent, Camber can explore different OEM relationships and market segments like last-mile and light-duty vehicles.

How does Harney think about the three years he spent at Proterra before leading Camber since it launched in March?

“We were enormously proud of what we did there. Speak to anybody at Proterra and you’ll find the same thing. Chapter 11 [was] successful in that parts of the business were able to continue and not be gathering dust somewhere in a warehouse.”

Editor’s note: Corrects spelling of Anthelion throughtout; Deletes reference to proviso on Proterra raising new capital and reference to Harney being aware of Anthelion’s role in Proterra’s bankruptcy.

Daimler will add 400 new jobs in $285M Detroit plant makeover

Daimler Truck North America will invest up to $285 million to update its Detroit manufacturing plant and enhance research and development at the complex while adding 400 new jobs.

The Michigan Economic Development Corp. is providing incentives worth $27.5 million, and the Michigan Strategic Fund is providing a tax abatement of up to $3.29 million.

The manufacturing plant is part of the Daimler-owned Detroit Diesel Corp., which has produced engines, transmissions and axles for the Freightliner, Western Star and Thomas Built Buses vehicle platforms since 1938. Daimler purchased Detroit Diesel in 2000.

Like all heavy-duty truck makers, DTNA needs to make changes to its engines to meet Phase 3 Environmental Protection Agency greenhouse gas regulations that require significant reductions in smog-forming nitrogen oxide emissions.

DTNA makes its own engines and offers engines from Cummins Inc., which will begin selling a version of its 15-liter engine in 2026 that meets the 2027 requirements.

The investment follows an agreement earlier this year with the United Auto Workers, which came within minutes of striking the Class 8 market leader.

Briefly noted …

Paccar Inc., will pay an extra $3-per-share dividend on Jan. 8 to holders of shares as of Dec. 20. The parent of Kenworth, Peterbilt and DAF Trucks also raised its quarterly dividend 10%, to 33 cents from 30 cents.

Volvo Autonomous Solutions and DHL are running Aurora software in Volvo’s new VNL with safety drivers on Texas routes from Dallas to Houston and Fort Worth to El Paso.

The new Volvo VNL will begin autonomous operations in Texas with safety drivers. (Photo: Volvo Autonomous Solutions)

Nikola is selling new stock again, this time seeking up to $100 million through an at-the-market arrangement with BTIG, which gets a 2.5% commission on gross sales. Shares in the electric truck maker and hydrogen distributor traded at a 52-week low of $1.50 earlier this week before closing at $1.57 on Thursday.

Autonomous driving software developer Plus has been named to the Inc. 2024 Best in Business for AI and data; innovation and technology; and logistics and transportation.

Mack Trucks has added 12 new Certified Electric Vehicle dealer locations, reaching a total of 65 EV-certified locations in 29 states and four Canadian provinces.

Truck Tech Episode No. 94: Kodiak takes autonomy off highway to make the business case for driverless trucking

https://www.youtube.com/watch?v=zvxCzk34h84&list=PLVi2PdlRdiSpjv3WSrEwb-j4qH7ezOEEs&index=1

That’s it for this week. Thanks for reading and watching. Click here to subscribe and get Truck Tech delivered to your email on Fridays. And catch the latest episodes of the Truck Tech podcast and video shorts on the FreightWaves YouTube channel. Send your feedback on Truck Tech to Alan Adler at aadler@firecrown.com.

Correction: Last week’s Truck Tech mischaracterized the role of Freudenberg’s Capol division in candy making. Capol creates the shiny finishes, not the coatings themselves.

Trump’s tariffs: A boost for domestic trucking demand

Over the past few months, a number of folks in the media have compared tariffs to sales taxes. While tariffs are a form of taxation, they are fundamentally different from sales taxes.

Tariffs are imposed at the import stage based on the declared value of goods, which does not include subsequent costs like labor, marketing or retailer profit margins. Consequently, the effect of a tariff on the retail price is typically less than the tariff rate itself.

For example, a car might have a modest 5% markup, whereas luxury items can have markups up to 500%. Generally, consumer products are marked up over 100% above their import value, but only this import value, or “declared value” – not the final retail price – is subject to tariffs.

Consumers worry that retailers will simply pass on the cost of tariffs as increased wholesale costs. However, companies are more likely to seek cheaper suppliers, source from different countries or increase domestic production. After all, sourcing is not static or fixed.

Importers’ response to tariffs

How will importers respond to tariffs? They have a few choices.

Absorbing tariffs: Importers might pay the tariff out of their profit margin to keep consumer prices stable.
Sourcing from alternatives: They could shift production to countries with more favorable trade agreements with the U.S.
Increasing prices: As a last resort, if neither absorbing the cost nor changing suppliers is feasible, the price to consumers might increase.

If importers find cheaper alternatives, they’ll adjust their sourcing to maintain profitability. Otherwise, they must decide whether to absorb the cost or pass it on to consumers, based on market tolerance for price increases.

Tariff impact and response

Importers are not the only party affected by tariffs. After all, for a large percentage of imports, there are two parties involved: the domestic importer and the foreign supplier.
President-elect Donald Trump has made it clear that he intends to direct a good portion of his tariff escalation on products sourced from China.

Chinese manufacturers will likely respond to tariffs by lowering prices to maintain competitiveness, avoiding loss of orders from U.S. importers. Additionally, the Chinese government might offer incentives and subsidies to its exporters, as it is known for supporting strategic industries and manipulating currency to counteract foreign trade policies.

Two decades ago, U.S. companies shifted production to China, leading to significant economic changes, including a decline in long-haul trucking dependent on domestic manufacturing. The entry of China into the World Trade Organization was particularly harmful to long-haul truckload carriers, as goods increasingly moved via global container ships and intermodal rail, bypassing traditional trucking routes.

However, bringing manufacturing back to the Americas could boost trucking demand, as manufacturing increases freight needs between suppliers, multiplying trips and miles in the manufacturing process. Consider the numerous movements of raw materials or components in the supply chain leading to the factory.

This scenario is akin to how attracting an auto plant increases employment when considering all associated suppliers in car manufacturing.

Not all manufacturing will return to the US

The primary goal of U.S. trade policy is to foster advanced manufacturing in sectors like electronics, machinery, pharmaceuticals, medical devices, aerospace, defense, agriculture, and oil and gas. Broad tariffs on Chinese exports encourage shifting supply chains out of China to other global regions.

Mexico should be a big beneficiary

During Trump’s first term, the United States-Mexico-Canada Agreement (USMCA) (or NAFTA 2.0) was established, making trade with Mexico more attractive than with China, nudging production back to the Americas. Trump has hinted at modifying this agreement to further favor U.S. companies, potentially targeting Chinese firms using Mexico for “border skipping.” This policy would likely be supported by Mexican policymakers for mutual benefits.

Sourcing from Mexico offers U.S. companies lower labor costs, reduced geopolitical risk and proximity to U.S. markets, accelerating the shift from China. Even with possible tariffs on Mexican imports, trade is expected to increase as companies prioritize supply chain resilience, benefiting U.S. trucking and rail.

Tariffs are not just for revenue or trade balancing but also for diversifying supply chains away from volatile regions, which is crucial for national security, especially with China’s potential threats.

The 2018 tariffs as a precedent

When Trump enacted 25% tariffs on Chinese goods in 2018, predictions of significant consumer price increases were largely unfounded. Price rises were minimal and temporary, with most effects absorbed within a year. The U.S. dollar’s appreciation nearly matched the tariff rates, mitigating inflation due to the dollar’s reserve currency status.

Tariffs are not purely a Republican policy; President Joe Biden has maintained and expanded some of Trump’s tariffs to include steel, aluminum, semiconductors, electric vehicles, batteries and critical minerals from China.

Moreover, the anticipation of tariffs often leads to an immediate surge in import activity, which benefits sectors like U.S. trucking, as seen in 2018 and currently in the freight market.

Other aspects of Trump’s policies, such as income and corporate tax reductions, bonus depreciation incentives, expansion of opportunity zones, and deregulation, are also expected to drive economic growth and goods consumption, increasing the conditions that will drive the freight market further out of the Great Freight Recession.

Trump opposes port automation due to ‘distress, hurt, and harm’ it causes workers

President-elect Donald J. Trump has taken a stand against port automation during contract talks between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX).

In a meeting with ILA President Harold Daggett, Trump argued that automation brings “distress, hurt, and harm” to workers, outweighing any financial benefits. His comments come as the ILA, representing 45,000 East and Gulf coast dockworkers, faces a strike deadline on January 15, 2025. The union opposes automation, fearing job losses, and is pushing for a ban on automated cranes, gates and container movements.

Trump criticized foreign companies for choosing automation over hiring American workers, advocating for reinvestment of profits into U.S. jobs. This stance reflects his “America First” policy, consistent with his administration’s past efforts to prioritize American employment over automation and outsourcing.

The issue extends beyond employment, touching on economic efficiency and trade. Ports are crucial for international commerce, and any disruption could have broad economic implications.

Trump’s support might sway negotiations, appealing to blue-collar voters but drawing criticism for potentially hampering port innovation and efficiency. As the deadline looms, the outcome of these talks could significantly impact U.S. supply chains and economic growth.

Trump backs ILA in port labor standoff

President-elect Donald Trump on Thursday sided with union longshore workers in their standoff with employers over the deployment of port automation technology.

Following a meeting with International Longshoremen’s Association (ILA) President Harold Daggett, Trump, in a post on his social media platform Truth Social, said foreign-based terminal operators and ocean carriers at East and Gulf Coast ports ought to eschew automation in favor of hiring more dockworkers.

“I’ve studied automation, and know just about everything there is to know about it,” Trump wrote. “The amount of money saved [instead of employing workers] is nowhere near the distress, hurt, and harm it causes for American workers, in this case, our Longshoremen.”

The post went on to echo the ILA’s oft-stated position that port employers headquartered outside the U.S. have racked up record profits, in exchange for the “privilege” of accessing U.S. markets.

“I’d rather see these foreign companies spend [profits] on the great men and women on our docks, than machinery, which is expensive, and which will constantly have to be replaced.

“In the end, there’s no gain for them, and I hope that they will understand how important an issue this is for me,” Trump wrote.

Employers “should hire incredible AMERICAN WORKERS, instead of laying them off, and sending those profits back to foreign countries.”

Trump, much like President Joe Biden earlier this year, seemed to signal that he would not intervene in a strike by the ILA. The union walked off the job for three days in early October, bringing container handling worth billions of dollars a day to a halt. Biden administration officials helped broker an end to the work stoppage, and the sides agreed to resume bargaining under an extension of the current contract through Jan. 15.

But talks between the ILA and employers represented by the United States Maritime Alliance covering 45,000 workers at 36 ports broke down in early November over the union’s refusal to allow semi-automated container cranes onto the docks, which it claimed would eliminate jobs. Another strike seems likely in early January, and shippers have been frontloading imports ahead of a walkout.

The Taft-Hartley Act gives the president powers to temporarily pause a port strike if it endangers national health or safety. The President can request a court order for an 80-day cooling-off period while negotiations continued.

President George W. Bush invoked Taft-Hartley in 2002 to end a strike by West Coast longshore workers.

Employers say automation is desperately needed to boost container volumes moving through ports, which in turn will create more jobs for union workers.

In a statement late Monday, the USMX said, “We appreciate and value President-elect Trump’s statement on the importance of American ports. It’s clear President-elect Trump, USMX, and the ILA all share the goal of protecting and adding good-paying American jobs at our ports. But this contract goes beyond our ports — it is about supporting American consumers and giving American businesses access to the global marketplace — from farmers, to manufacturers, to small businesses, and innovative startups looking for new markets to sell their products.

“To achieve this, we need modern technology that is proven to improve worker safety, boost port efficiency, increase port capacity, and strengthen our supply chains. ILA members’ compensation increases with the more goods they move — the greater capacity our ports have and goods that are moved means more money in their pockets.

“We look forward to working with the President-elect and the incoming administration on how our members are working to support the strength and resilience of the U.S. supply chain and making crucial investments that support ILA members and millions of workers and businesses across the entire domestic supply chain, improving efficiency and creating even more high-paying jobs for ILA members.”