Welcome aboard Evans Transportation's Weekly Newsletter, your go-to source for the latest developments, insights, and trends in the dynamic world of logistics. As your trusted partner in transportation solutions, we are thrilled to bring you a curated digest of industry updates, company news, and exclusive content designed to keep you informed and inspired.
Transportation Updates
???????????????? Freightwaves: April 6th
- Retail diesel fuel costs surged 33% since April 2019, outpacing a 16% rise in National Truckload Index (NTI) spot rates.
- Trucking faces inflated operating costs; diesel, a major expense, shows carriers struggling to pass costs to customers.
- Calculations based on industry standards reveal significant cost-per-mile increases, emphasizing a deteriorating truckload capacity environment since 2019.
- The current market sees carriers with less pricing power compared to 2019, leading to consistent losses despite nominal rate increases.
- Unprofitability poses a severe risk to transportation service providers, necessitating caution for shippers and carriers in managing contract rates versus spot market fluctuations.
???????????????? Freightwaves: April 5th
- March saw the second-largest increase in truck transportation jobs since January 2023, with 5,100 jobs added to the sector.
- This growth follows revisions to February and January reports, indicating a positive trend, though still 20,600 jobs below January 2023 levels.
- David Spencer of Arrive Logistics attributes the growth to investments in drivers, possibly anticipating improved trucking conditions and summer peak season.
- Despite warehouse job declines, with March down by 5,500 jobs, long-term shifts toward automation are expected due to rising labor costs.
- Rail sector employment, although showing improvement, remains modest, with a gain of 100 jobs in March, reaching pre-pandemic levels.
???????????????? CCJ: April 1st
- Long haul truckers face complexities with predicting stops due to Hours of Service rules and real-world uncertainties.
- Compliance with HOS rules often leads to unplanned stops, impacting income and risking safety in some cases.
- Drivers bear costs for delays caused by factors like slow loading and traffic, affecting their earnings significantly.
- Lack of measurement and accountability for delays hampers efficiency in the freight system, affecting drivers' income and overall productivity.
- Introducing Total Shipping Time (TST) metric could improve efficiency by analyzing delays and optimizing freight movement processes.
?????????????????Logistics Management: April 2nd
- Economic uncertainty challenges traditional models; recent growth defies predictions, emphasizing supply chain volatility.
- Deepening partnerships with 3PLs is crucial amid rising customer demands, operating costs, sustainability goals, and geopolitical impacts.
- True partnerships entail trust, transparency, focusing on value, governance, performance, visibility, and co-innovation.
- Data-driven insights are pivotal for enhancing customer value, aligning shipper and 3PL objectives, and driving innovation.
- Prioritize talent collaboration, network optimization, and revised contract terms for successful partnerships amid supply chain uncertainty.
Economic Updates
???????????????? CNBC: April 5th
- March job creation exceeded expectations, with nonfarm payrolls rising by 303,000, pushing the unemployment rate down to 3.8%.
- Average hourly earnings increased by 0.3% for the month and 4.1% from a year ago, consistent with estimates.
- Sectors driving gains included healthcare, government, leisure/hospitality, construction, and retail trade, indicating broad-based job creation.
- Despite overall positive trends, the unemployment rate for Black individuals rose to 6.4%, while rates for Asians and Hispanics fell sharply.
- Market response to the report was positive, with stock market futures rising and Treasury yields increasing, signaling confidence despite concerns about inflation.
???????????????? PR Newswire: April 1st
- The manufacturing sector expanded in March after 16 months of contraction, with increased new orders and production.
- Employment contracted while supplier deliveries improved slightly. Prices and imports increased, reflecting economic expansion.
- The majority of manufacturing industries, including textiles, petroleum, and transportation equipment, reported growth in March.
- Suppliers show signs of struggling due to raw material supply chain issues despite accommodative inputs.
- Respondents express optimism for future orders and production, though some sectors still face challenges like soft demand.
?????????????????CNBC: April 4th
- Crude oil futures rose due to geopolitical tensions and OPEC+ policy, with WTI and Brent reaching multi-month highs.
- OPEC+ maintains voluntary production cuts, impacting global supply despite geopolitical tensions.
- Oil prices saw slight gains despite a build in US crude stockpiles, as OPEC+ holds current production policy.
- Improving economic growth forecasts suggest an oil market deficit, boosting oil prices, according to Bank of America.
- Geopolitical tensions in Ukraine and between Israel and Iran contribute to oil price volatility amid supply disruption fears.
?????????????????Logistics Managers Index: April 2nd
- March's Logistics Manager’s Index rose to 58.3, the fastest since Sept 2022, reflecting inventory expansions and efficiency gains.
- Tightening warehousing capacity and increased inventories drive the growth.
- Transportation capacity slightly decreased, signaling an ongoing freight recession.
- Optimism prevails for future growth, with a forecasted LMI of 63.5.
- Differences in inventory management strategies between Upstream and Downstream firms were noted.
Company-Specific
?????????????????AccuWeather: March 27th
- 2024's hurricane season is expected to surpass historical averages with 20-25 named storms.
- Warm waters, transitioning La Ni?a, and fewer wind shears indicate hyperactivity.
- Texas, Florida, and Carolina coasts face elevated risk; residents urged to prepare.
- Possible exhaustion of the conventional naming system might lead to the utilization of a supplemental list.
- The analog year 2016's hurricane Matthew indicates similarities to 2024's predicted conditions.
???????????????? Freightwaves: April 1st
- Pride Group, a major Canadian trucking company, filed for bankruptcy, risking many families' livelihoods.
- Founded in 2010, it operates 50 locations with a fleet of 20,000 tractor-trailers across Canada and the U.S.
- Pandemic-related downturn led to an oversupply of trucking services, declining revenue, and debt struggles for Pride Group.
- More than 20 lenders claim over $637 million in debt from the company.
- Pride Group's bankruptcy filing aims to maintain operations, stabilize the business, and develop a restructuring plan under creditor protection laws.
?????????????????Freightwaves: April 3rd
- Daseke, a flatbed operator, was acquired by TFI International for $1.1 billion, ending its tenure as an independent company.
- Daseke's revenue grew from $651.8 million in 2016 to $1.57 billion in 2023 before its acquisition.
- TFI International's recent acquisitions, including Daseke and Hercules Forwarding, reflect a strategic shift towards LTL operations.
- TFI International closed a $500 million term loan, signaling confidence in its strategic direction and future growth prospects.
???????????????? Journal of Commerce: April 1st
- Saia partners with Fletes Mexico for cross-border LTL freight.
- Highlights increased LTL volume due to growing Mexico sourcing.
- Evolution in cross-border trucking favors LTL-sized shipments.
- Expansion of US third-party logistics firms in Mexico and along the border.
Stay ahead of the logistics curve and receive exclusive industry insights – subscribe to our weekly newsletter now for a firsthand look at the future of transportation with Evans! Keep moving!
