Markets

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.

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.

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's 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.