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Month: June 2015

Better Roads for Trucking

“Moving billions of dollars’ worth of freight every year, trucking hauls nearly 70% of all the country’s freight” (http://bulktransporter.com/trends/trucking-needs-better-roads-keep-our-country-moving). However trucking is always threatened by the disrepair, congestion and neglect of the roads which it requires to complete its much need cargo.

Since 1993 the federal highway program has ceased to grow. This is a much needed aspect to a much need industry. Without the roads trucks cannot get where they have to go and in turn get the product to the consumer.

It is not just the lack of roads but “Congestion and bottlenecks on important freight corridors cost trucking more than $9.2 billion annually”  (http://bulktransporter.com/trends/trucking-needs-better-roads-keep-our-country-moving) with “The average motorist–not truck driver–spends almost 40 hours a year stuck in traffic”. This is a staggering amount of time and wasted money for truck drivers and trucking companies alike. It means that due to the added time truck driver s will have to spend longer amounts of time on the road and in theory will cause more accidents due to fatigue.

Consumers also are affected due to time spent waiting for a product to arrive, this time spent waiting has the potential to cause massive losses to any business that might be waiting on “overnight shipping”. A problem which is sure to affect us all as it progresses.

If something isn’t done soon it can be assumed that massive losses and problems are going to occur all throughout industries. So why hasn’t something been done yet?

 

SOURCE Bulktransporter.com, Bill Graves, May 2015

 

Increasing Fuel Efficiency in Tanker Trucks

Tanker trucks are big and heavy. They do a lot of miles and because of this they use a lot of fuel. So what is being done to help make the tanker truck industry a more efficient one?

Recently a company, the Walker group, introduced the DuraPlate AeroSkirt for tank trailers. This is said to improve fuel economy at highway speeds by up to 7%. (http://www.truckinginfo.com/article/story/2013/11/4-trends-in-liquid-tank-trailers.aspx). It is thought that this kind of improvement on fuel efficiency will be able to help the entire trucking industry. Less money spent on fuel, more profits, more money can be put back into the company and thus more technology can be discovered. It is a cycle that will lead to better tanker trucks all over the world and a more cost effective way of transporting goods.

In an attempt to increase fuel efficiency it was decided to try and make the trailers lighter. The introduction of the second generation Lean Duplex stainless steel tank allowed 700 pounds to be trimmed off the original tare weight of the trailers. “The weight savings come from being able to fabricate these second-generation Lean Duplex tanks from 12-gauge material.” (http://bulktransporter.com/fleet-management/more-payload). A lighter trailer means less weight to drag and thus more fuel to be saved.

“In 2013, the tank truck industry hauled 2.48 billion tons of freight, which equaled 25.6% of all truck freight” (http://www.prnewswire.com/news-releases/tank-truck-industry-market-analysis-now-available-300057626.html), This is a staggering amount and it seems clear that in order to keep the trucking industry alive more of these exciting type advancements need to take place, I am sure we are all looking forward to that.

SOURCEBulktransporter.com, Charles Wilson, July 2010

SOURCE National Tank Truck Carriers (NTTC)

 

Transcourt shines at Moncton’s Atlantic Truck Show

PRESS RELEASE

Toronto, June 10th, 2015

After showcasing at ExpoCam in Montreal last April and at the Peace Region Petroleum Show in Grande Prairie, Alberta in May Transcourt Tank Leasing, the Canadian leader in leasing and long-term rental of liquid and dry bulk tank trailers, continued on its cross-Canada trek on June 5 and 6 with a stop at the Atlantic Truck show in Moncton, New Brunswick. The show which is held every second year and is both customer and trade oriented, welcomed some 12,660 visitors over the two days, a new record.

Transcourt has been setting the standard in tank trailer leasing since 1997 and offers a large fleet of high quality tankers in various configurations including new and used stainless steel chemical trailers, aluminum crude oil and petroleum tankers, pneumatic dry bulkers as well as propane/LPG units. In order to be able to answer all customer requests, Transcourt acquires new tankers on a regular basis from the industry’s leading manufacturers.

“Transcourt’s responsive sales and service team focuses on growth within the existing liquid and dry bulk segment while continuing to provide personalized and customized service to customers. Our belief in providing added value at every customer touch point has helped us cement long- term client relationships over the years”, says Tony Jelicic, Leasing Manager for Eastern Canada

A socially responsible corporation, Transcourt supports some half a dozen charitable organizations and responded positively to the Charity Silent Auction organized by APTA (Atlantic Provinces Trucking Association) at Casino New Brunswick on June 5th, 2015, to raise funds for the Juvenile Diabetes Research Foundation

About Transcourt Tank Leasing

Transcourt Tank Leasing was founded in 1997, specifically to meet the leasing and long-term rental needs of the liquid and dry bulk transport industry. Transcourt’s large fleet of tankers is available to customers across Canada. A wide selection of tank trailer configurations is available to a variety of unique industry segments and includes stainless and aluminum tankers, propane btrains and tridems, crude oil and condensate tankers as well as dry bulk trailers. www.transcourt.com

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The Transcourt table at the special Juvenile Diabetes Research Foundation fundraiser that was held on June 5th at Casino New Brunswick and organized by the APTA.

 

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Tony Jelicic, Leasing Manager for Eastern Canada; Charles El Ogeil, from Bédard Tankers and Delon Rashid, from Truck and Trailer Magazine are seen here in the Transcourt booth in Moncton.

Source:           Vianna Murday
                        Transcourt Tank Leasing
                        905-338-5744
                       vmurday@transcourt.com

Transcourt at the Peace Region Petroleum Show

PRESS RELEASE

Toronto, May 21st, 2015

Transcourt Tank Leasing, the Canadian leader in leasing and long-term rental of liquid and dry bulk tank trailers, exhibited at the Peace Region Petroleum Show on May 13 and 14 in Grande Prairie, Alberta. Though the petroleum industry is experiencing a significant downturn, Transcourt wanted to increase its profile and presence in the marketplace. In 2013, as it aimed to strengthen its share of the market out West, Transcourt opened an office in Calgary.

This past April, Transcourt was also present at ExpoCam 2015 in Montreal where it was announced that the Toronto-based company was opening an office in Montreal. “The West has always been one of our main markets in Canada. Business has slowed down, there is no denying the fact, but it will eventually pick up”, stated Joe Quaresma, Vice-President of Leasing for Western Canada. “Delivering value at every touch point is the key to our efforts to further develop this market. Working together with our customers and providing them with creative leasing solutions to meet their business objectives is one of our main goals.”

Transcourt’s responsive sales and service team focuses on continuing growth within the existing liquid and dry bulk segment while expanding into new tanker markets. Transcourt offers a large fleet of high quality tankers in various configurations including new and used stainless steel chemical trailers, aluminum crude oil and petroleum tankers, pneumatic dry bulkers as well as propane/LPG units. New tankers are being acquired monthly from the industry’s leading manufacturers and equipment coming in off lease or rental is also readily available.

About Transcourt Tank Leasing

Transcourt Tank Leasing was founded in 1997, specifically to meet the leasing and long-term rental needs of the liquid and dry bulk transport industry. Transcourt’s large fleet of tankers is available to customers across Canada. A wide selection of tank trailer configurations is available to a variety of unique industry segments and includes stainless and aluminum tankers, propane btrains and tridems, crude oil and condensate tankers as well as dry bulk trailers.

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Joe Quaresma (left), Vice-President of Leasing for Western Canada, is seen here with Sheldon Larson (center), of Cen-Alta, a Transcourt customer out West and another participant at the Peace Region Petroleum Show.

Source:           Vianna Murday
                        Transcourt Tank Leasing
                        905-338-5744
                       vmurday@transcourt.com

Easy to Get, but Hard to Find

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High U.S. exchange rates coupled with stratospheric demand are keeping trailers on the leased side of the ledger.

An article posted in Today’s Trucking, June issue:
BY JIM PARK

The day my ship came in I was at the airport. How many times have you heard that one from a trucker? When it comes to the acquisition and procurement of trailers, a look back over the past seven or eight years tells a similar story.

Today’s trailer market, especially dry van and refrigerated trailers, is as tight as it has been in recent memory. During the last half of 2014, many fleets came to the conclusion the recovery from the 2008 recession had finally taken hold and the economy was moving forward with some certainty. Consequently, they started getting serious about ordering trailers; not just to replace aging equipment, but new stuff with which to grab a share of the burgeoning demand for freight service.

By the end of the year and on into the first quarter of 2015, trailer builders’ order boards jammed up. Now nearly every build slot is taken for the near term, which basically means for the remainder of this year. It’s a good time to be in the dry van or reefer business. It’s not such a good time to be in the market for new equipment.

Across the country, the supply of and demand for trailers varies, as do market conditions. We are a nation of regions,
after all.

“Ontario and Quebec are more reliant on the retail sectors and are very strong in the dry van market,” says Mississauga, Ont.-based Anne McKee, executive vice president of Trailer Wizards. “Once you get into Atlantic Canada you deal a lot more in reefers, especially now as the fish-
ery and vegetable seasons start to heat up.

“As you know the price of oil has taken a bit of a dive, so in the prairie region where we had very strong demand for decks and specialty equipment—especially in the northern part of the prairie region—we are seeing a real slow down,” she says. “Other parts of the prairie region are strong right now because of agriculture.  The British Columbia market is very strong, I mean the port situation is always
the wild card in the mix, but it remains strong as well.”

While overall demand for equipment remains on the strong side, the weakening dollar has crimped our appetite for buying. So much so that many fleets are now turning to leasing to mitigate the effects of the exchange rate.

“Our dollar is low compared to the American dollar, and that is impacting trailer purchases,” McKee points out. “Also, the large fleets in the U.S. have taken up almost all of the dry van build spaces right out to January [2016]. Almost every manufacturer is booked until at least September or October for reefer builds. That combined with the dollar issue makes for an expensive trailer and that means more people are turning to renting and leasing.”

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Lease vs Purchase

Canadian dealers and their customers had it good for a while when the two currencies were at or close to par. But the fly in the ointment then was the credit crisis. The only customers the banks would touch were those that were already flush. Anyone considered even the slightest risk was pretty well out of luck. Credit crisis notwithstanding, the economy was in the tank then and fleets were only buying to replace aging equipment. There was much new gear coming into circulation.

Now that the economy is firing on all cylinders, we have the exchange rate to contend with again. The 20% premium can add $5,000 or more to the price of a trailer.

“A reefer trailer that used to cost $60K is now $65K or $70K Canadian so there is a bit of a difference,” says Joe Ricci, director of origination, Maxium Financial Services. “Business isn’t really suffering because of it, it’s only another $100 a month or so on a five-year deal.”

Still, the differential can put additional load on the cash flow. Leasing can work for customers seeking to hang on to their cash for other purposes. The tax load on a purchase is high at the beginning, whereas with a lease, the tax payments are spread out over the term of the lease. And leasing is a nice way to go when you’re worried about the maintenance side of things.

“The technician shortage is impacting fleets all over the country,” says McKee. “A full maintenance lease is a good option for fleets that don’t have their own shop facilities or can’t find good technicians. There are a number of reasons for going to full service, but I would say at least 95% of our customers are doing it that way.”

That’s another way to stabilize costs and cash flow. The full-service lease cost will be higher, but it’s also predictable. McKee says it’s in her company’s best interest to keep the equipment well maintained so that it retains its value for resale at the end of the lease.

Leasing is also a great way to get over humps in the business model, like during surges in volume, or when a customer makes a specific request you can’t easily accommodate. This isn’t often an issue in vans and reefers, but when you get into speciality equipment like tank trailers it’s a different story.

Because of their high capital cost, you don’t flip tank trailers around like vans. Often the trailer is customized to the commodity. So, companies like Transcourt Tank Leasing can fill the gap on a short term basis, making available equipment that might take months to order or providing equipment on a short term basis to help manage peak periods.

“Some fleets prefer to lease out right, it just depends on the business model,” says Transcourt’s co-founder and president, Bruce Daccord. “Leasing helps keep the costs stable and they still make money on the spread between the payment and the revenue as opposed to treating the equipment as an asset.”

On the purchase side companies like Bibby Financial Services can tailor loans for smaller customers who have the revenue but might be struggling with cash flow. Mary Ann Hudson, executive vice president of Bibby Financial, says the company specializes in customizing the loans to suit the customer’s situation.

“Terms could be anywhere from 90 days to 6 months,” she says. “We work out all kinds of exceptions based on their cash flow. Of course we don’t ever want to put them in a situation where they can’t pay it back in a reasonable amount of time, but we also want them to pay it off where it doesn’t hurt their cash flow.”

While it’s great to have financial alternatives for equipment procurement, it would be nice to have some equipment to procure. Analysts say it will take most of 2015 to get the order backlogs behind us. Even with the current strength of the economy, fleets won’t continue investing in additional capacity of it means once again flooding the market. They have now tasted the fruits of a tight freight market, and many would be happier if it stayed that way. It seems today money is easier to get than equipment.