Transportation Updates
???????????????? Logistics Management: June 10th
- US container import volumes rose 11.9% annually in May, reaching 2,346,382 TEUs.
- Imports from China were strong, with the second-highest monthly volume since January 2023.
- The top 10 US ports saw a 6.1% increase in container volume from April to May, led by New York/New Jersey and Long Beach.
- Global shipping risks include Panama Canal conditions, Middle East conflict, and potential labor strikes at US ports.
- Descartes emphasized ongoing stress on ports and logistics infrastructure until capacity is improved.
???????????????? The Wall Street Journal: June 7th
- The trucking industry lost 5,400 jobs in May, marking the largest decline since August 2023, with 29,600 jobs lost over the past year.
- Despite the broader US economy adding 272,000 jobs, trucking faces a prolonged freight demand downturn and an oversupply of drivers.
- Smaller companies and independent owner-operators, who entered during the COVID-19 boom, are exiting due to declining profits.
- Large companies like Yellow and Convoy and smaller firms like Arnold Transportation have collapsed amid the slump.
- ACT Research predicts a freight demand rebound within months, driven by rising consumer goods spending and retailer restocking efforts.
???????????????? CCJ: June 14th
- The US House Appropriations Committee approved a DHS funding bill to address supply chain fraud and cargo theft.
- The bill allocates $2 million to establish a Supply Chain Fraud and Theft Task Force within DHS.
- The task force will coordinate with various law enforcement agencies to combat theft in rail, motor carrier, and intermodal systems.
- The bill passed the committee 33-26 and moves to the full House for a vote.
- ATA and OOIDA support the initiative to combat organized theft groups and protect trucking businesses and highway safety.
?????????????????CCJ: June 13th
- Real-time transportation visibility is the top IT investment in the supply chain for seven consecutive years, per Descartes' survey.
- 40% of shippers and logistics providers plan to invest in transportation tech to prepare for industry changes and 44% for top performers.
- Visibility is the priority tech investment (36%), followed by order management (35%) and fleet routing (29%).
- Real-time GPS/ELD data (52%) and carrier/broker shipment statuses (51%) are key insights for shipment visibility.
- Truckload (47%) and less-than-truckload (40%) are seen as the worst performers in real-time visibility.
?????????????????Bureau of Transportation Statistics: June 12th
- The Freight TSI fell 1.1% in April from March, marking the second consecutive monthly decline.
- April 2024's freight shipments were 4.5% below the peak of August 2022 and 1.3% lower than April 2023.
- The index reflects decreases in trucking, air freight, rail, pipeline, and water transportation.
- Despite mixed economic indicators, the Freight TSI shows long-term growth, up 11.9% over the past decade.
- The April index is 42% higher than the recession low in April 2009 but remains below pre-pandemic levels.
???????????????? The Wall Street Journal: June 11th
- Shares in shipping and logistics firms fell amid news of a potential Israel-Hamas ceasefire, which may reduce freight rates.
- Houthi rebel attacks forced containerships to take longer, costlier routes, tightening the market and raising spot freight rates.
- Maersk and Hapag-Lloyd raised profit expectations due to higher rates from diverted routes.
- Ceasefire approval may stop Houthi attacks, boost global fleet capacity by 4%, and potentially collapse spot prices by 50%.
- Hapag-Lloyd and Maersk shares dropped significantly, while European logistics operators Kuehne + Nagel and DSV also declined.
?????????????????Freight Transportation Research Association: June
- FTR’s Trucking Conditions Index improved to -1.95 in April from -7.25 in March but remains negative.
- Freight rates, financing costs, and volume showed improvement, though the TCI has been negative since early 2022.
- The index is expected to stay mildly negative for 2024, with occasional positive readings possible.
Economic Updates
???????????????? CNBC: June 12th
- Inflation fell to 3.3% in May, driven by lower gasoline prices, though housing costs remain high.
- The consumer price index (CPI) rose 3.3% annually, down from April’s 3.4%, indicating slow progress against inflation.
- Core CPI, excluding volatile food and energy prices, fell to 0.2% monthly in May, with annual shelter inflation at 5.4%.
- Economists predict housing inflation will decline slowly, with stable market rents and essential household costs remaining steady.
- Used car prices, airline fares, and other physical goods saw price reductions, contrasting with rising motor vehicle insurance and medical care costs.
???????????????? The Wall Street Journal: June 7th
- US job growth exceeded expectations in May with 272,000 new jobs despite the unemployment rate rising to 4%.
- Average hourly earnings rose 4.1% year-over-year, highlighting the resilience of the US economy amid high borrowing costs.
- The unemployment rate increase is partly due to separate survey methods and a potential rise in immigration adding job seekers.
- Investors adjusted expectations for Federal Reserve interest rate cuts, leading to increased bond yields and minor stock market changes.
- Recent economic data showed weaknesses, but the broad rebound in payroll growth, especially in government and hospitality sectors, remains optimistic.
???????????????? The Wall Street Journal: June 12th
- The Fed held its benchmark rate steady between 5.25% and 5.5%, as widely expected.
- Most Fed officials predict only one rate cut this year, with some split between one or two cuts.
- Inflation improved in the latest report, but the Fed wants more data before considering rate cuts.
- Investors initially expected a rate cut in September, but Fed projections tempered those expectations.
- Despite steady job and income growth, Americans remain concerned about high costs and economic conditions.
???????????????? Fast Company: June 11th
- April's existing home sales matched late-'70s levels due to deteriorating housing affordability.
- Many homeowners stay put to avoid higher mortgage rates, impacting sales.
- Goldman Sachs forecasts slow recovery, with existing home sales reaching 4.5 million by 2027.
- The new homes market fares better due to builders' flexibility in pricing and lack of a "lock-in effect."
- Goldman Sachs predicts that mortgage rates will fall and home prices will rise by 2025.
Specific Articles
???????????????? FreightWaves: June 16th
- Evans Transportation launched a new Mexico cross-border freight service to leverage Mexico’s growing role in global manufacturing.
- Mexico was the top US trading partner in April, with $72.47 billion in trade, marking a 15% year-over-year increase.
- Port Laredo, Texas, was the leading US trade gateway in April, handling $29.1 billion in two-way trade and 266,692 truck crossings.
- Evans Transportation researched cross-border logistics for eight months before launching, adding Marcelo Baptista as VP of Mexico operations.
- The company anticipates over $20 million in Mexican freight revenue for 2024, with plans to expand personnel and offices.
? ? ? ? ? ? ? ? ?The Wall Street Journal: June 10th
- East and Gulf Coast dockworkers canceled labor talks and threatened a potential strike later this year.
- The International Longshoremen’s Association protested automated machinery use, claiming it violates labor agreements.
- Union leader Harold Daggett warned members to prepare for a strike if no contract is secured by September 30.
- The National Retail Federation urged both sides to negotiate and avoid economic disruptions.
- Talks were halted after discovering Maersk's terminal operator using autonomous equipment, causing negotiation delays.
???????????????? CCJ: May 31st
- DOJ and DEA propose reclassifying marijuana from a Schedule I to Schedule III, potentially affecting trucking regulations.
- Schedule I drugs have no accepted medical use, while Schedule III drugs are less hazardous but still controlled.
- DOT currently disqualifies drivers testing positive for marijuana without a valid medical prescription.
- Reclassification may create ambiguity in drug testing rules for truck drivers, with potential regulatory conflicts.
- The proposed rule is in the early stages, with public comments open and final outcomes still uncertain.
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!
