Today’s Pickup: freight futures begin, dollar advances, Amazon announces logistics intentions

Photo: Shutterstock

Photo: Shutterstock

Good day,

The Trucking Freight Futures tour began yesterday on Wall Street in New York City. The roadshow will broadcast live as it passes through Chicago on Thursday, then on to Houston, Dallas, Atlanta, Chattanooga and Detroit.

Trucking Freight Futures, like all futures, are designed to offer market participants a chance to offset their risk in the trucking market. Taking a long or short position in the market can help offset unanticipated changes in the price of freight, giving businesses a path toward a more stable, predictable source of income.

“For the first time in the history of trucking, we’re empowering everyone who participates in the freight market, from carriers and brokers to shippers and speculators, to de-risk their business in an unprecedented way,” said Craig Fuller, founder and CEO of FreightWaves. “A freight futures market helps take the pain out of wild price swings while rewarding participants who use data to drive decision-making.” 

Wrap up the week with JP and Chad.  Click here to listen on demand .

Wrap up the week with JP and Chad. Click here to listen on demand.

Did you know?

Transportation costs represent 8% of the U.S. GDP.

Quotable:

We’ve carried too much inventory because we’ve been conditioned at artificial rates.”

—Ryan Gremore, president of Illinois car dealership chain the O’Brien Auto Team 

In other news:

Stocks edge up as dollar advances; iron ore rises: markets wrap

U.S. index futures erase decline as Treasury yields fall. (Bloomberg)

Drewry paints positive outlook for ocean freight rates

Spot and contract rates are on course to rise by a combined 7% in 2019, as the modest recovery continues. (Lloyd’s List)

DP World global container volumes rise in 2018

Strong growth was seen in the UK, Turkey and Canada. (The National)

Port of Savannah sees record growth, launches expansion program

A five-year expansion plan at the Port of Savannah aims to help the port stay ahead of growing demand for service in the region. (DC Velocity)

Amazon delivers its shipping intentions to FedEx, UPS, USPS via regulatory filing

Amazon added “transportation and logistics services” to the already long list of industries and services it views as competition. (Fortune)

Final thoughts:

New technology has finally provided the means for aggregating transactions, making data-driven decisions and increasing market transparency. Recent price shocks have demonstrated to the whole industry – and to anyone who pays attention to the economy– that spot rate volatility can be deeply damaging to all participants, including shippers, 3PLs and carriers. Beginning on March 29, by hedging against their natural exposure to price, shippers and carriers will be able to smooth out their expenses and revenues, making their businesses more predictable and sustainable and creating shareholder value.

Hammer down everyone!