trucking demand

Have inventories found their sweet spot?

Chart of the Week: Logitics Mangers’ Index – Inventory Levels, Total Business Invetory to Sales Ratio – USA  SONAR: LMI.INVL, TBIS.USA

Inventories appear to have stabilized after years of volatility. The Logistics Managers’ Index (LMI) Inventory Levels component hovered in slight contraction territory last year while the Census Bureau’s Business Inventory to Sales (TBIS) fell into a more stable pattern.

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https://www.freightwaves.com/news/have-inventories-found-their-sweet-spot

Trucking authority correction accelerates

Chart of the Week: Carrier Details Net Changes in Trucking Authorities – USA  SONAR: CDNCA.USA

Since the start of November, net active truckload operating authorities have dropped by 9,000 — an approximately 12% increase over the same period last year, according to Carrier Details’ analysis of Federal Motor Carrier Safety Administration data. 

The operating authorities measured here are Motor Carrier of Property authorizations. These are specific to for-hire truckload companies, which can...

https://www.freightwaves.com/news/trucking-authority-correction-accelerates

Companies’ drive for expanding margins threatens future freight demand

Chart of the Week: Producer Price Index – all commodities, Consumer Price Index – all, Outbound Tender Volume Index – USA SONAR: PPI.ALLCOM, CPI.ALL, OTVI.USA

The Producer Price Index (PPI), which measures the input costs for goods, has fallen 8% since last summer. The Consumer Price Index (CPI), which measures what consumers pay for goods and services, has kept increasing. Companies are still trying to get their margins back to pre-pandemic levels with price increases on finished goods. This...

https://www.freightwaves.com/news/companies-drive-for-expanding-margins-threatens-future-freight-demand

No disaster relief for spot rates

Chart of the Week: National Trucking Index, Outbound Tender Reject Index – USA SONAR: NTI.USA, OTRI.USA

National truckload spot rates increased a marginal 1.5% over the past week, according to the National Truckload Index (NTI), as the first hurricane to make landfall in the U.S. this year hit the southwest coast of Florida. Similarly, national tender rejection rates seemed unaffected, indicating transportation managers have little to fear in terms of capacity availability on a national level. 

Na...

https://www.freightwaves.com/news/no-disaster-relief-for-spot-rates

Trucking caught in crossfire of Fed’s war on inflation

Chart of the Week: Fed Funds Rate, Outbound Tender Volume Index – USA SONAR: FEDFUND.USA, OTVI.USA

The Fed raised interest rates another 75 basis points (0.75%) on Wednesday, which will more than likely support the continuing decline in trucking demand that started in early March. The national Outbound Tender Volume Index (OTVI), which measures requests from shippers for truckload capacity, has an inverse correlation with the federal funds rate — as one goes up, the other comes down. Truckload...

https://www.freightwaves.com/news/trucking-caught-in-crossfire-of-feds-war-on-inflation

Truckers work through Labor Day as market continues to soften

Chart of the Week: Outbound Tender Rejection Index, Contract Load Accepted Volume – USA SONAR: OTRI.USA, CLAV.USA

Truckload volumes for contract freight jumped 3% in the week leading up to Labor Day while load rejections remained near annual lows below 6%. As a consequence, truckload spot market rates barely moved, increasing a marginal 2.3% in the week leading up to the holiday. Rates increased over 6% in 2021 off a much higher base value. This is the latest signal that the trucking market...

https://www.freightwaves.com/news/truckers-work-through-labor-day-as-market-continues-to-soften

What does East Coast import shift mean for domestic transportation?

Chart of the Week: US Customs Maritime Import TEUs – Port of Los Angeles, Port of New York/New Jersey SONAR: CSTEU.USLAX, CSTEU.USNYC

The volume of TEUs clearing customs at the Port of New York and New Jersey has doubled versus this time last year, while import volumes have been cut in half at the Port of Los Angeles. Cost effectiveness is driving shippers to take advantage of the savings of going directly to the East Coast, where most of the consumption occurs. This action has led to a rapidly...

https://www.freightwaves.com/news/what-does-east-coast-import-shift-mean-for-domestic-transportation

Trade war era pattern reemerging in trucking

Freight is moving shorter distances, compounding the effects of waning demand

Chart of the Week: Long haul Tender Volume Index, Tweener haul Tender Volume Index, Short haul Tender Volume Index, City haul Tender Volume Index – USA  SONAR: LOTVI.USA, TOTVI.USA, SOTVI.USA, COTVI.USA

Long-haul trucking demand has eroded at a faster rate than loads moving less than a half a day’s travel, compounding the easing process in the market. Since March 1, the long-haul outbound tender volume index (LOTVI) —...

https://www.freightwaves.com/news/trade-war-era-pattern-reemerging-in-trucking

Freight market volatility is the new/old normal

The Cass Freight Shipments Index shows wider ranges with less predictability over the past six years

Chart of the Week: Cass Freight Shipments – USA  SONAR: CFIS.USA

After enjoying one of the most stable stretches in modern history from 2010 to 2015, the freight market has been on a wild ride worthy of a theme park centerpiece. After six years of “anomalous” behavior, it is probably time to consider the “normal” five-year period in the first half of the 2010s the anomaly.

The Cass Freight...

https://www.freightwaves.com/news/freight-market-volatility-is-the-new-old-normal

Intermodal remains resilient, despite trucking demand dip

Intermodal provides low-cost storage option for shippers

Chart of the Week: Loaded Rail Container Volume, Outbound Tender Volume Index – USA  SONAR: ORAILL.USA, OTVI.USA

Time has been of the essence over the past year as demand for goods outstripped supply, forcing shippers to order more than they needed. Now that consumer demand is waning, companies find themselves with more inventory than they can handle. The national Outbound Tender Volume Index (OTVI) has dropped 12% over the past year and...

https://www.freightwaves.com/news/intermodal-remains-resilient-despite-trucking-demand-dip

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