Transportation TIP List: Week of May 26th, 2019
This past weekend, the nation observed Memorial Day – and here at Transplace, we want to extend a special thanks to those men and women who have served and who currently serve in our military. We are truly grateful for your service and your sacrifice!
Below, this week’s TIP List observes some of the trends that are currently impacting the transportation and supply chain industry:
- Floods Swamps U.S. Farm Belt: The wettest year on record is keeping farmers out of fields, causing cost increases for the nation’s biggest agricultural companies and slowing shipments across the U.S. Farm Belt.
- Capacity Peaking at Large U.S. Truckload Carriers: The surge in new Class 8 tractors ordered by the largest U.S. truckload carriers in 2018 peaked late in the year, and is likely on its way down as a softer freight market, trade uncertainty and production backlogs depress demand.
- Freight Traffic Now Batting .500: Building on recent “significantly improved” rail traffic, total carloads for the week ended May 18 were up 2.2% compared with the same week in 2018, while U.S. weekly intermodal volume was 269,352 containers and trailers, down 5.5% compared to 2018.
- Logistics Bottlenecks Hamper Efforts to Produce Less in China: Companies looking to move production from China to other Asian countries to avoid mounting U.S. tariffs on Chinese imports may be facing significant bumps in the road – as the infrastructure in Southeast Asia remains far less developed than China.
- U.S. Truck Tonnage Spike Belies Softer Reality: After months of dismal surface freight demand, for-hire truck tonnage surged in April, climbing 7.4% from March and rising 7.7% year over year. However, with the index spiking unexpectedly, industry professionals are wondering: was the freight business really that good to begin with?
What industry news and trends are you currently following?