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.
