Despite softening spot rates in some modes, overall supply chain costs are rising, with higher interest rates putting more pressure on inventories, according to the CSCMP State of Logistics report.
The recession caused by the COVID-19 pandemic has erased years of trucking employment gains, bringing payroll headcounts below 2006 levels, US data shows.
Trucking companies large and small are focused on getting through the next month or two, after which they hope freight volumes will begin to recover. But that recovery may be a long one.
Spot truck rates are up about 5 percent since the end of February on demand for consumer staples, even as the US economy slows. Pricing may still be elevated when Chinese imports hit US ports and produce season puts the screws to US trucking capacity.
The 10-year US economic expansion is over, killed by the response to the coronavirus disease 2019 (COVID-2019), and the recovery will be slow, IHS Markit chief economist Nariman Behravesh warns.
The third-largest US LTL operator commits to ongoing reorganization, and sees glimmers of recovery in US manufacturing activity and freight demand in early 2020.
In a lackluster market, ArcBest’s ABF Freight finds it necessary to judiciously mix truckload spot and traditional LTL freight, asset-based, and non-asset services.
Truck volumes have flattened, not collapsed, a trucking analyst tells SMC3’s Jumpstart 2020 Conference. Truck capacity hit its peak in Q4 2019, and is expected to contract this year.
Indications that the US manufacturing sector is improving, rather than deteriorating, could point to more freight demand and truck shipments this spring, especially for LTL carriers.
Year-to-date declines in metal, chemical, and forest product shipments will depress future truck volumes, creating an overhang that will affect pricing, a transportation economist says.
Truckload spot rates leaped upward in the first week of December, rising 12 cents per mile above their November average according to DAT Solutions as the final holiday retail push got underway.
A ‘freight volume headwind’ blew hard against YRC Worldwide in November, driving down tonnage at YRC Freight 10.2 percent year over year. December is looking better, the carrier says.
Cass Information Systems is partnering with the University of Tennessee to enhance its benchmark truckload and intermodal pricing indexes, and explore new data opportunities.
Trucking is experiencing slow growth, not a collapse, ATA Chief Economist Bob Costello says, with retail sales and contract business sustaining demand.
The retail and restaurant businesses are growing and generating freight, but they’re being reshaped in ways that will challenge their transportation partners.
One of the few positive indicators in trucking is the ATA Tonnage Index, which rose 7.3 percent in July year over year -- a signal that some don’t believe the industry is in turmoil.
Truckload carriers surveyed by Cowen & Co. are banking on a stronger second half and expect contract rates to rise 2.7 percent on average over the next six months.
A sharp decline in shipper spending and freight volumes causes some to sound the recession alarm, but others still see slower growth, not steep decline, amid tariff threats.
Former Canadian Prime Minister Brian Mulroney is calling for the expansion of the NAFTA free-trade zone throughout the Americas, as well as improvements in labor productivity at home.
Economists and shipping industry leaders warn the US-China trade war could be a potential tipping point for a global economy that was already cooling before President Donald Trump raised tariffs on $200 billion in Chinese goods.
US containerized imports from Asia dropped 0.5 percent year over year in the first quarter of 2019, after rising 15.5 percent in the fourth quarter, according to the PIERS data, a sister product of JOC.com within IHS Markit
With cross-border freight already delayed and logistics costs rising, businesses must plan for a potential closure of the US-Mexico border threatened by President Trump.
"With the holiday season behind us, the immediate pressure to stock up on merchandise has passed, but retailers remain concerned about tariffs and their impact on the nation’s economy,” said Jonathan Gold, the NRF’s vice president for supply chain and customs policy.