But container volumes still going strong this quarter as U.S.-China hash out deal; but first quarter likely to see slowdown.
With the market data available on SONAR, we have ability to see all the ebbs and flows of freight movement happen in real-time.
Cowen expects softening trucking prices in 2019 to be a headwind for truckload carrier earnings, but should widen gross margins for freight brokerages.
Job growth slowed in November after an impressive gain in the previous month, but signals from wages and unemployment suggest that labor market conditions remain generally healthy. The transportation and logistics industry had another strong month of hiring, with impressive job gains from trucking, parcel, and warehousing companies.
Saudi Arabia and Russia agree on further production cuts to prop up crude prices; Qatar leaves OPEC to focus on nat gas; heavy sweet crudes are trading at a premium in anticipation of IMO 2020.
“I am convinced this transitional stage is going to give us huge opportunities for our country, and we are ready to face them.”
It seemed like the stuff of posturing and hot air. It was hard to see anything substantive changing from the weekend meetings of the G20 nations in Argentina. Will something more than kicking-the-can come from the concessions?
Two largest economies agree to halt hostilities through first quarter after a year of trade saber rattling.
Oregon produces about 6 million Christmas trees each year, more than any other state in the U.S.
Is the economy still healthy? Are people still making things, shipping things, and buying things? According to the railroad car data, the answer is a definitive “Yes.”
The tax changes of 2017 caused some fleets to consider leasing as opposed to buying, and new accounting rule changes could have a similar effect, says Fleet Advantage.
The size of the US goods trade deficit with the rest of the world increased again in October, as a large decline in exports and a small gain in imports pushed the deficit near record levels. The total value of traded goods fell slightly during the month but is still considerably higher than at this point last year despite significant changes to trade policy.
This morning Fleet Complete, a global leader in connected vehicle technology and software, announced that it had been acquired by the Ontario Teachers’ Pension Plan, a large fund with $193.9B in assets.
Detroit tops list of places for online retail start-ups; climate change seen having a major impact on U.S. infrastructure.
Jubitz brings in about $40 million of the company’s $175 million annual revenues as the industry contracts and braces for tech and regulatory headwinds.
Tesla cuts prices of Model S and Model X; oil prices are down to a one-year low; Hong Kong bats for free trade; Hapag-Lloyd is launching a premium product based on extensive market research.
The conference attracted over 2,000 industry players and largely revolved around the topics of Asian connectivity, the impact of trade tariffs, and technologies that are revolutionizing the logistics industry.
Trucking executive points to final mile delivery as draining driver pool, so think about that on Cyber Monday.
Upcoming summit could provide surprise deal, but acrimony and lack of consensus puts deal in doubt.
Retail activity posted the strongest gain in five months, as big gains in auto sales and rising gasoline prices helped to drive overall activity. Core spending grew at a more moderate pace, but the broad-based nature of the gains is encouraging headed into the holiday season.
Good times at U.S. ports not expected to last as world’s largest shipping line warns trade war will rear up at start of next year.
2018 may have seen tight capacity and the strongest economy on record since the Great Recession, but what will 2019 look like?
“We went through a period when growth of shipping was 2-3 times the growth in international economy. I don’t think those times are coming back.”
New York and Crystal City the big winners, of course, but Music City will house e-retailer’s operations center for the eastern U.S.
The Cass Truckload Linehaul Index reached another record high in October while the company’s Intermodal Price Index points to rising intermodal costs.
The U.S.-China trade war has brought misery to the thriving U.S. lobster industry, which is now feeling the heat of an additional 25% tariff that Beijing slapped on its live and processed lobster exports to China.
DHL hopes plan will attract new recruits to industry as shortfall looms.
China’s imports record strong third quarter with October data also suggesting more goods on the way.
Data on producer prices shows that overall inflation pressure jumped at the start of the 4th quarter, though core price gains were more modest. Industry detail showed that trucking rates posted another solid gain in October, with big gains in long-distance rates offsetting declines in LTL.
Lows water levels are seasonal, but this year has been record, impeding low-cost barges and favoring high-cost trucking.
More of the same. That was the consensus in a quick informal poll of listeners to FTR’s State of Freight webinar on Thursday when they were asked what the most likely outcome was for the U.S. economy in 2019.
Rail and truck demand a secondary casualty in trade dispute.
A surge in freight from Los Angeles has started to inflect the Dallas and Houston freight markets. Meanwhile, Harrisburg, PA’s strong headhaul score makes that Northeast market a diamond in the rough.
A decrease in coal volumes did not slow a revenue rise at BNSF Railway Company, which posted a 16% increase in operating revenues in the third quarter compared to Q3 2017.
The measure would have rolled back diesel fuel taxes from 36 to 16 cents a gallon.
Tuesdays may not be good days to be on the road; transport firms need to boost analytics usage to match what customers are doing.
Job growth rebounded in October after Hurricane Florence disrupted hiring activity in the previous month. Within the transportation and logistics industry, trucking payrolls expanded for the sixth consecutive month, though growth lagged behind the pace of hiring among parcel companies and warehouses.
SONAR’s OTVI.LAX is clearly indicating that the strength in the inbound loaded container flow out of the Long Beach/LA port is continuing and gathering momentum.
A monthly survey of all the important economic developments from the past month, and a look at some of the key trends to watch throughout the month of November.
The pipelines taking oil away from the Permian are at capacity, causing a buildup of WTI inventory at the Cushing, OK storage sites and depressing the price of WTI against Brent. Prices would be even lower if Venezuela and Iran weren’t causing further worries about global supply.
In a CarrierLists survey of fleets, most respondents expect rates and volumes to remain the same or improve in 2019.
FreightWaves discussed how the midterm elections impact the economy at large, and specifically how it pertains to freight. What are the implications to the economic indicators regardless of the winner?
The FreightWaves Research Institute is excited to announce the release of its second white paper, Global Freight Tickers, a worldwide study of publicly traded transportation and logistics companies
Drayage to be test bed as OTR market remains out of EV reach.
Surge in low-sulfur fuel use by ships could usher in two to three year period of uncertainty in refining industry.
Growth in the US economy slowed slightly in the third quarter of the year, but remains strong headed into the end of 2018 and consumers and inventory building carried the load.
While the index is still showing significant gains over last year, there clearly is a decline from recent highs.
SONAR’s Headhaul Index map and the HAUL.JOT Index are both showing that the return to growth in inbound loaded container flow first seen in the Long Beach/LA port is continuing and gathering momentum.
Continuing efforts to fight what he says are unfair trade practices, the administration of President Donald Trump announced the U.S. will pull out of the Universal Postal Union (UPU) treaty, which sets how much can be charged for international shipping.
Housing starts fell more than expected in September, as the impact of Hurricane Florence caused a massive decline in construction activity in the South. This put a damper on what would otherwise be a decent report and leaves some uncertainty about the underlying strength of one of the key components of freight demand.
Linx Partners, a New York-based private equity firm, announced that it successfully sold its investment in Grammer Industries to Stellex Capital Management.
Despite an exceptionally strong year for trailer orders, Wabash National’s stock took a hit when the company guided downward for its Q3 results, blaming higher input costs and labor issues.
Industrial output continued to push ahead in September, signaling that one of the key drivers of freight demand remained solid at the end of the 3rd quarter. Production was restrained slightly by the impact from Hurricane Florence, but not enough to prevent growth in the sector from reaching a near 8-year high.
Retail activity eked out a meager gain for the second consecutive month, as a sharp decline in spending at restaurants weighed down the headline numbers. Retail conditions remain generally solid, however, as the sector looks poised for healthy growth to round out the year.
Rail seems to be benefiting from higher diesel prices and capacity constraints with SONAR data suggesting more loads are shifting to intermodal in shorter lengths of haul.
Massive scale, cyclical and structural advantages, and best-in-class technology make C.H. Robinson a ‘buy’ despite a transports selloff, say analysts at Stifel and Goldman Sachs.
The Dow Jones Industrial Average plummeted today, posting its biggest loss since May 29; meanwhile the S&P 500 is on a losing streak that hasn’t been matched in upwards of 2 years.
Data on producer prices shows that overall inflation pressure continued to stabilize at the end of the 3rd quarter, rising modestly in September. Rates within trucking posted stronger growth during the month, led by big increases in LTL pricing.
Gains in rates will moderate in coming quarters, but underlying issues of driver availability will keep market tight.
Differences remain in what is best path for drivers to follow, but all agree that port congestion is a problem that needs fixing.
Job growth stumbled in September as Hurricane Florence likely disrupted results during the month. Unemployment continued to trend down in the economy however, and labor market conditions remain generally tight. Hiring within trucking continued to advance during the month, growing for the 5th consecutive month.
Indices are clearly signaling that the container volume coming in through the Long Beach/LA port is surging and bodes well for the holiday shopping season.
The United States – Mexico – Canada Agreement (USMCA) protects multinational oil and gas companies’ investments in Mexico from incoming President López Obrador.
Survey data from the manufacturing and service sectors continue to point towards robust growth in the 3rd quarter. Manufacturing activity slipped slightly from multi year highs during the month, but service activity has pushed to record highs despite shortages in labor and trucking capacity.
Driver churn continues to plague the industry as the turnover rate at large truckload carriers has reached its highest point in five years.
Stifel’s John Larkin captivated the audience with a wide-ranging presentation on transportation and logistics across modes during Tuesday’s lunch at the McLeod User Conference 2018.
The depreciating Indian rupee coupled with rising fuel prices have hit the Indian transportation corridor quite hard. The Indian government is now coming up with new regulations and innovative transportation practices to ease pressure.
A roundup of economic data releases and events over the past month, and view of trends worth watching in October. Freight demand conditions remained generally solid during the month, though international trade and housing remain trouble areas. Supply within trucking looks to be expanding, and hires in the industry continued to climb
Tender volumes are taking many by surprise, but not those that understand what is happening with the use of ELD’s by small carriers, especially in the dry van segment.
Concerns over a global trade war have eased this morning, as Canada agreed late Sunday to join a trade deal between the US and Mexico. The deal makes modest revisions to the previous North American Free Trade Agreement (NAFTA), and clears up some of the uncertainty surrounding the trade environment.
China’s National Bureau of Statistics reported slowing growth pointing to weaker exports as the China Manufacturing Purchasing Managers Index (PMI) dropped to 50.8 percent, down 0.5 percentage points from the previous month to the second lowest reading in 12 months.
The US trade deficit in goods widened for the third consecutive month in August as another decline exports was paired with a modest increase in imports. The total value of traded volume fell for the month, but remains generally strong relative to last year.
Factory orders for durable goods rose in August, driven by a large increase in commercial aircraft orders. Orders historically are a leading indicator of future shipments, and August’s results suggest that freight demand on the durable side of the economy should remain solid.
The investment bank issued a report this morning calling for one more spot rate peak in the fourth quarter, followed by a softer 2019 that should still be 12% above the 2012-7 cycle. New price targets were also issued.
Both new home sales and home starts showed some improvement in August, ending months of disappointing activity. Existing home sales failed to expand for the fifth straight month however, and housing in general remains a weak area for freight demand.
Iran’s truckers are on strike in 100 cities for the second time this year, causing fuel shortages. Meanwhile, the Iranian rial is rapidly losing its value, and the country’s biggest crude oil customers are cutting it off.
The report on online transportation platforms does not draw any conclusions about why it’s happening, but it has plenty of data to back up that it is occurring.
Brent and WTI prices have reached 4 year highs, and the Brent-WTI spread continues to favor American oil exports on the international market. We explain how longer lateral lengths in Permian Basin horizontal wells are driving truckload demand.
The smartest minds on Wall Street use charting analytics to quickly identify and then track trends in multiple data sets. Why? Because it works. And now freight professionals are learning how to do the same.
FreightWaves CEO Craig Fuller, Chief Economist Ibrahiim Bayaan, and Senior Meteorologist Nick Austin discussed Hurricane Florence’s impact on freight, the general macroeconomic situation, and the upcoming IMO 2020 regulations on maritime fuel.
A tanker barge operator, a Jones Act steamship line, and North America’s largest 3PL all posted big gains on the day, leading Dow Transports to a record intraday high against a softening broader equities market.
FreightWaves spoke to GlobalTranz CEO Bob Farrell and AFN Logistics CEO Owen Schnaper about the deal.
A pair of releases this morning show that retail spending and industrial output expanded in August, signaling that some key components of freight demand continue to grow at a healthy pace in the 3rd quarter.
Data from LinkedIn’s monthly workforce report shows that hiring in the transportation and logistics sector has continued at a strong pace throughout the last year. While this reinforces much of what has been reported through government statistics, LinkedIn is able to leverage its unique social media data to discover new trends about labor markets in the economy.
Data on producer prices shows that overall inflation pressure eased further in the 3rd quarter, declining for the first time in 18 months. Trucking prices also calmed during the month, as big declines in long-distance trucking and LTL rates offset rising rates among local carriers.
U.S. job openings rose in July to a new record, adding to signs of labor-market tightness that may push wages higher. Within the transportation and logistics sector, openings continue to outpace hiring as businesses are finding considerable difficulty trying to fill positions.
Probably to no great surprise to attendees in the room, American Trucking Associations’ Chief Economist Bob Costello painted a very positive picture of the current and near-term freight environment during the ATA’s 2nd Annual Economic Summit last week in Washington, DC.
Job growth continued its remarkable pace in August, and data on hourly earnings show that wage growth is advancing at the fastest pace in over nine years. Strength in the overall labor market continues to spill into the trucking industry, which added jobs for the 11th time in 12 months.
Survey data from the manufacturing sector improved significantly in August, in a sign that activity continues at a strong pace after robust growth in the 2nd quarter.
The economic roundup is a monthly summary of the various factors that affect freight demand and supply in the economy. Data releases in August showed an economic that was performing generally well, but softness in housing and trade are likely to impact freight demand.
Peter Stefanovich of Left Lane Associates, an M&A advisory firm for the transportation industry, talked to us about the current outlook for M&A and why now is the perfect time to sell.
Marketing executive says reforms to trade deal take uncertainty from local customers.
Maersk foresees a $2 billion increase in fuel costs due to sulfur-emissions cap; U.S. consumers might witness increase in car prices after U.S.-Mexico deal; Indonesia is seeing a tremendous growth in ecommerce; German car manufacturers are facing a battery production crisis.
Regional surveys from Federal Reserve districts were mixed during the month, as softening conditions from the Philadelphia and Kansas City districts were offset by improvements in the Richmond and New York regions. Commentary from the regional surveys suggests tariffs, labor shortages, and the inability to find trucking capacity are curbing economic activity across the board, though growth remains generally positive.
North American trading bloc seeks rewrite with auto industry facing brunt of changes.
After remaining flat in 2015-16, the average fleet fuel economy for the nation’s top fleets improved in 2017, according to research conducted by the North American Council for Freight Efficiency (NACFE).
President Donald Trump highlights new deal with Mexico involving automobile trade
A package of weak data on both housing starts and home purchases indicates that housing and construction remains one of the few areas of weakness in the economy in the 3rd quarter. This has put some downward pressure on freight demand, as the movement of building materials, furniture, and appliances is influenced by the strength of the housing market.
As real estate prices are over the roof, the number of people willing to enter the housing market is at a record high. The mismatch needs to be addressed – possibly by better zonal regulations and technology injection in construction methods.
The trade tariffs spat between the U.S. and the rest of the world is having consequences at home, as importers and consumers have to contend with the rise in product prices in the country.
