The recent slide in spot rates is typical for this time of year, according to FreightWaves’ CEO, and data indicates another peak before Thanksgiving is possible.
Global sugar prices fall over record production and decreasing demand; oil squeeze looks to be inevitable; Walmart’s size might not help much if prices keep increasing and trucking market remains tight.
A pair of releases this morning show that retail spending and manufacturing output continued to advance in July, signaling that some key components of freight demand remain on solid footing in the 3rd quarter.
Morgan Stanley’s Truckload Freight Index has decreased over the last two weeks and has now underperformed seasonality two updates in a row. This seasonal deceleration is not unusual, as July and August tend to be weaker.
With the recent chatter of a “housing crisis,” and the market reaching a “peak cycle,” we decided to take a closer look at what is going on.
Data on producer prices shows that overall inflation pressure calmed at the start of the 3rd quarter. Trucking prices continued to climb during the month however, particularly for long distance trucking where rate inflation has pushed to a new record high
Survey data in both the manufacturing and service sectors signal that growth continued at a slightly slower pace at the start of the 3rd quarter. Concerns over tariffs, labor shortages, and freight capacity remain issues in the economy overall, and may have contributed to the moderation in growth.
Job growth fell short of expectations in the economy in July after robust hiring over the past several months. Labor market conditions remain tight, however, as the unemployment rate neared historic lows at the start of the 3rd quarter. Within trucking, hiring continued to improve a solid pace in July despite the moderating job growth in the overall economy.
Schneider National became the latest carrier to announce that it has benefited financially from the strong pricing and capacity squeeze when it announced its second-quarter operating revenues were up 15% year-over-year.
Freight demand remained strong through the end of the 2nd quarter, but growth is likely to normalize through the 3rd quarter as some of the temporary boosts to economic activity fade.
Stifel’s super-team of equities analysts took a hard look at trade war risk for carriers in every mode and various types of logistics service providers. Dry bulk maritime is the most exposed, while air cargo is the least. Railroads and intermodal carriers like JB Hunt and HUB Group also have significant risk.
Tolls once graced Connecticut highways until the mid 1980s, but the state is now looking at bringing them back to increase revenue. The state trucking association says it is the wrong approach.
After setting one record high after another in the early weeks of 2018, the weekly DAT Dry Van and Reefer Barometers have pulled back but remain in a strong growth range.
Oil production faces volatile times, as multiple OPEC countries witness geopolitical problems and unstable governments, leading to the possibility of yet another rise in fuel prices.
Growth in the US economy improved considerably in the second quarter of the year, as a rebound in consumer spending helped drive the strongest quarter of growth in nearly four years.
Fuel remains among the largest costs for both carriers and shippers but based on the current practice of using a fuel surcharge to mitigate volatility in pricing, both parties remain at risk of ending up on the losing end of the deal.
Demand in the economy continues to grow at a solid pace at the start of the 3rd quarter, but a myriad of government survey results suggests that trucking capacity and concerns over tariffs have limited the performance of several sectors.
After setting one record high after another in the early weeks of 2018, the weekly DAT Dry Van and Reefer Barometers have pulled back slightly before stabilizing in a strong growth range.
Tesla stocks fell by about 2.5% today after a Needham analyst raised concerns on the increased cancellations of Model 3 cars over different reasons like long waiting times, unavailability of base model and the expiration of the $7,500 credit.
Volvo’s Q2 had the company’s sales earnings climb past hundred billion Swedish kronor, buoyed by double digit growth figures around the world except Europe, where its market has stabilized and is at the point of saturation.
Recent increases in oil prices have revived some debate over the effect that oil has on the economy and freight markets. While evidence suggests that the recent increase has helped growth, there are some limits to the benefit that the market can gain from higher oil prices.
U.S. retail sales rose solidly in June, boosted by increases in purchases of motor vehicles and a range of other goods, cementing expectations for robust economic growth in the second quarter.
A revenue increase boosted earnings for J.B. Hunt Transport Services (NASDAQ: JBHT), as the carrier reported second-quarter net earnings of $151.7 million, or $1.37 per share, versus second-quarter 2017 net earnings of $97.9 million, or 88 cents per share.
While there is a lot of noise surrounding tariffs and potential trade wars, it probably isn’t enough to derail the economy and the red-hot freight environment.
Trump’s new tariffs are beginning to hit less like strategic targets, and more like an indiscriminate bombing campaign. For all the drama, what’s the end game?
Data on producer prices shows that overall inflation pressure continued to heat up in the economy, as gains in service prices helped to push up. Trucking prices surged again in June, as part of an overall wave of rising transportation costs in the economy.
Job growth continued at an impressive pace in June, beating expectations for the second consecutive month. Trucking hires also made significant strides during the month, but increased competition from within transportation and other competing industries will remain a challenge going forward.
Survey data in both the manufacturing and service sectors continued to point to strong economic growth at the end of the 2nd quarter. Details in the survey responses continue to suggest that high transportation costs, labor shortages, and tariff uncertainty remain significant issues in the economy.
The Indian trucking ecosystem now witnesses frequent strikes, as different economic reforms and the more recent rise in fuel prices are forcing a lot of carriers to accrue losses.
Freight conditions generally held solid during the month despite some softening in the manufacturing sector. With economic fundamentals largely in place, the focus has shifted to trade policy, where trade war escalations threaten domestic activity.
Understanding hours-of-service and ELD regulations and their exemptions can help fleets better manage driver’s time.
The US trade deficit in goods narrowed for the third consecutive month in May as improved export performance outweighed a modest rise in imports during the month.
Arrive Logistics, one of the nation’s fastest growing brokerages with offices in both Austin, TX, and Chicago, has received a Series A round of funding led by Lead Edge Capital.
Sales of new single-family homes beat expectations in May as a surge of sales in the South helped offset softness in other areas of the country. This serves as a sign that construction activity should remain strong, though other downstream industries face challenges.
Think government regulations are just a drain on your finances? Think again. Today, savvy fleets are using government regulations such as the hours-of-service rules to their advantage — but how?
The Supreme Court ruled in favor of allowing states to collect taxes on all sales made through online channels, helping large omnichannel retailers compete online for sales.
Truck tonnage rose for the second consecutive month in May, as improving economic conditions and gains in hiring have helped trucking performance.
The song of 2018 remains the same—and tariffs or no tariffs, it projects to remain so even as infrastructure on the rails and ports expand.
Penske Logistics has reached agreement in principle to acquire Epes Transport Systems, of Greensboro, NC. The deal, expected to be finalized in the next few weeks, will add over 1,200 units to Penske Logistics.
As of late yesterday the Canadian dollar volatility began trending poorly throughout the night and into today, and the short-lived support fell.
U.S. shale oil production is fast-growing, but pipeline bottlenecks at the Permian basin could mean that it can’t completely fill the gap being created by the drop in Venezuelan oil production.
Millennials are helping drive the current economic cycle, which is showing no sighs of slowing down.
The economy remains strong, and capacity tight, although buffeted by some headwinds.
Retail sales rose 0.8% in May, beating economist estimates of 0.4% and showing that economic growth still has some room to expand.
The value of commodity indexes has grown about twice as fast as equities indexes in 2018 so far, prompting a wave of capital expenditure in timber, mining, and oil extraction and keeping demand for truckload miles hot.
For the first half of the year thus far, coal exports are up nearly 24% over the same period last year.
The lumber markets have not cooled off since we last covered them in March: futures prices are still breaking records because of a Canadian rail capacity crunch, and flatbed rates in the Southeast are climbing right along with them.
With transport stocks surging, some market watchers are hopeful that the current expansion period will continue despite downturns in the broader market earlier this year.
The job openings rate in the overall economy hovered at record highs at the start of the 2nd quarter, as companies across industries continue to struggle to find workers. Results from the transportation sector show an industry facing a significant challenge, and wages will likely face additional pressure to rise in upcoming months.
U.S. Sen. Bob Corker, R-Tenn., says he and others are “crafting” legislation requiring congressional authority over levying tariffs in response to President Donald Trump’s imposition of stiff steel and aluminum tariffs on Canada, Mexico and the European Union.
Manufacturing activity continues to expand in the 2nd quarter, and challenges with finding employees and tight freight capacity have made it difficult for producers in the economy to keep up with strong demand.
Candid conversations with leaders in the logistics/truck freight brokerage industry.
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 June.
Job growth improved considerably in May as the unemployment rate matched a near-50 year low. Trucking hires also made significant strides during the month, erasing the large decline in trucking employment from last month.
Oil, which helped drive a rally for stocks Wednesday, began pulling back ahead of U.S. supply data.
Results from the Federal Reserve’s Beige Book suggest that manufacturers have shrugged off tariff concerns and are enjoying stronger growth in the 2nd quarter. Labor shortages remain an issue however, broadening beyond the trucking industry.
The US trade deficit in goods narrowed for the second consecutive month, but a decline in both exports and imports means less transportation to and from ports
The U.S. government is looking to levy 25% added tariffs on auto exports, which could set off a spate of trade wars with countries like Germany, Japan, and South Korea.
New IMO regulations asking for the shipping industry to cap the sulfur content in its fuel to 0.5% would have far reaching consequences on crude oil refining and potentially send oil prices to $90 per barrel.
A panel of financial experts were mixed when asked whether the industry would see higher spot rates one year from now, but continued capacity issues was not in debate.
China and the United States issued a joint-statement regarding trade consultations and a desire to support bilateral trade between the countries.
E-commerce sales shrugged off a weak quarter for retail overall, and the resilience of online shopping should continue to drive innovation in transportation and freight markets as businesses look to take advantage.
The Brent-WTI spread has widened considerably to $8.25, a bullish signal for demand for American oil exports and truckload miles.
Output from the nation’s industrial sector climbed for the third consecutive month, as broad gains across industries helped compensate for a lull in auto production. This serves as yet another sign that freight demand will remain solid in the 2nd quarter.
High capacity, steady rise in oil prices, a weaker U.S. dollar and a dull spot market had sunken margins of shipping majors in Q1 2018.
Retail activity improved again in April, helping to reinforce the idea of stronger consumer spending in the 2nd quarter. This should help sustain freight demand as retailers look for inventory replenishment and last mile residential delivery services
It will literally take an act of Congress to right the sinking USPS ship. Even heavy attrition and solid growth in packages and shipping can’t stop the losses.
The intensifying shortage of drivers is the result of several key issues relating to supply, demand, and new regulations—and is expected to have a significant impact on oil supply.
Data on producer prices shows that overall inflation pressure cooled in the economy last month, as big declines in food prices offset gain in other areas of the economy. Trucking prices remained essentially unchanged for the second consecutive month, but remain elevated relative to this point last year.
Job openings pushed to a fresh record high at the end of the 1st quarter, indicating that labor market conditions remain healthy in the overall economy. The openings rate in the transportation sector continues to outpace the rest of the economy, and the pace of hiring provides further evidence that the industry is struggling to find workers.
The collapse of Venezuelan oil production and fears of renewed sanctions on Iran are driving oil prices to 2014 levels, but what does that mean for the American economy and the trucking sector?
Brokers continue to see more business and higher revenue, according to the latest data compiled by DAT.
he pace of hiring improved slightly in April as the unemployment rate fell below 4% for the first time since the end of 2000. Trucking employment, however, saw no such gains as jobs in the industry declined for the first time in eight months.
Manufacturing growth is likely to remain solid in the 2nd quarter, as orders for new production remained healthy through March. This should help keep freight demand strong, even if things have moderated from the torrid pace seen in previous months.
Data from the Institute of Supply Management shows that manufacturing activity lost some momentum in April, as the current capacity crunch and recent tariffs have impacted production flows
Every new regulatory regime—whether it’s deregulation, the introduction of hours of service, or the ELD mandate—prompts a fresh wave of creative destruction. Some business models thrive, while others go extinct.
The industrial real estate prices have been up for a long time and if market trends are to be believed, they could be climbing for the next few years.
Economic conditions as they relate to freight generally improved during the month. With a few notable exceptions, most of the data released in April (largely covering March activity) either met or exceeded expectations and signal that freight demand will likely stay strong going forward.
When investing in cyclical companies, such a transports, it is important to first understand what part of the economic cycle we are in.
Tax changes have made leasing an even more inviting proposition for fleets, says the COO of Fleet Advantage.
Economic growth slowed down in the 1st quarter, as payback from post-hurricane surges and poor weather derailed activity in some sectors of the economy.
The goods trade deficit narrowed for the first time in seven months, but total trade going in and out of the US actually declined.
Durable goods orders rose 2.6% in March, driven by a 2nd consecutive surge in commercial aircraft orders. Core orders remained essentially unchanged during the month in a sign that freight demand will continue to normalize.
The company is moving fast in an effort to stay on top of trends, to see industry changes as opportunities, and to continue to act offensively.
Truck tonnage fell for the second consecutive month despite generally solid economic conditions. Responses from survey data suggests that the freight is out there, but capacity is preventing tonnage growth
Sales of single-family homes improved for the 2nd consecutive month in a sign that housing activity is beginning to accelerate at the start of spring. This, in turn, should boost freight demand for building materials, furniture, and appliances as households move in and settle.
Trucking employment has grown a healthy 32% since 2012, but very small and small fleets are absorbing the new drivers, leaving large carriers struggling to seat their trucks.
Many fortunes have been made doing exactly the opposite.
Volatility returns to commodity markets, with oil, aluminum, and nickel posting huge price increases. How long will these price shocks last, and how will they affect the economy?
Responses from the Federal Reserve’s Beige Book on regional economic conditions show that recent tariffs and capacity issues in freight are starting to pressure businesses.
China-U.S. ocean freight rates have been falling continuously for the record 32nd week, in the wake of the Chinese New Year and a continous surge in capacity.
Positive news from both manufacturing and construction sectors, as gain in each help drive up freight demand in the economy
Daseke has purchased Aveda Transportation and Energy Services, one of North America’s largest oil rig movers. This acquisition increases Daseke’s exposure to the oil and gas industries, which have a bullish outlook for 2018 and beyond.
Retail sales rebounded in March after declining in each of the previous three months. This rebound is a return to normal for the retail sector after some volatility in spending following the hurricane season.
Job growth has improved since the start of the year in the trucking industry. While this is strong step in address the driver shortage, the industry will soon find itself having to compete long-term with other industries desperately searching for skilled labor.
Flatbed freight remains red-hot with 111 loads for every truck, but what is causing the surge in demand?
We explain how the yield curve works, how it affects the cost of debt, and what that means for trucking.
Data from the Producers Price Index showed that prices for trucking services remain high, and a spillover in demand may be causing a surge in intermodal rates.
Stifel returns to trucking with an array of notes on individual carriers and a comprehensive industry update. Analysts expect 12% increase in truckload rates y/y, spillover into LTL and intermodal, and no relief in sight for the driver shortage.
Job growth fell well short of expectations in March, but trucking hires continued to accelerate as the industry tries to address the current capacity crunch.
