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.
Flatbed demand, railroads’ chemical carload volumes, and the price of WTI crude are all bullish signals for an historically hot freight environment to continue through the rest of the year.
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.
Navistar has rolled out a series of new products in the last few years and the strong overall economy is helping the once-beleaguered truck maker rebound with another strong performance in its second-quarter earnings, beating Wall Street estimates.
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.
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 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.
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.
Trailers orders dipped month-over-month in April, but for the 17th consecutive month they posted year-over-year gains.
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
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.
Positive news from both manufacturing and construction sectors, as gain in each help drive up freight demand in the economy
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.
Data from the ISM index showed that manufacturing activity pulled back slightly in March, and responses from the survey highlight the impact that trucking shortages and tariffs are having on performance.
A monthly synopsis of events and results in the macroeconomy from the past month and a discussion of implications for freight markets going forward. Results released in March were generally more favorable than the previous month and suggests that freight demand should remain strong going forward.
Regional manufacturing data from the Dallas and Richmond Fed suggests that manufacturing activity has cooled in March as the impact of tariffs has affected output
Manufacturing industrial production surged in February, but housing starts slipped in a mixed day for freight demand
The merged companies could mean the transformation of the way we consume soda, as well as the consolidation of shipping and shelf space. The product can also bypass retail stores entirely and ship directly to consumers.
Data from the Institute of Supply Management shows that manufacturing activity remains robust in the economy, which has historically meant strong demand for trucking
