The FTR Truck Transport Condition Index remained at minus 1.95 in April.That’s up from -7.25 in March, FTR officials said June 13. Freight rates and financing costs are both less negative, and freight volumes have improved, they said. “Though conditions are improving for truckload companies, the market still has to navigate a tough combination of excess capacity and weak freight demand,” added Avery Vice, FTR’s vice president of trucking.
“In May 2024, U.S. cargo volumes excluding coal increased 0.3%. (2,259 vehicles) in May 2023. Vehicle loads so far this year are up 0.4% (15,144 vehicles) compared to last year and up 0.9% (30,777 vehicles) compared to 2022. — Association of American Railroads, Railroad Time Index, June 7
The expenditure items in the Cass Freight Index, which measures the total amount spent on transporting freight, are: May increased 1.9% from the previous monthCass Information Systems released the figures June 17. The 9% year-over-year decline narrowed from a 17% decline in April, according to Cass officials. The expense item is set to increase by a record 38% in 2021 and another 23% in 2022 before declining by 19% in 2023. “From here, assuming normal seasonal patterns, we expect spending to decline by approximately 16% in the first half of 2024 and 10% for the full year,” the Cass official said.
The Port of Los Angeles handled 752,893 TEU in May. 3% decrease From the total for May 2023, However, overall cargo volume increased by 18%. The port announced June 12 that cargo handling volumes will be the highest on record for the first five months of 2023. Loaded imports in May were 390,663 TEU, down 4.5% compared to the same period in 2023. The port handled 236,268 empty containers last month, a 12% decrease compared to the May 2023 total.
“Sales of new minivehicles in May 2024 reached a seasonally adjusted annualized rate of 15.9 million units, the highest so far this year and one of the best-selling months in the past three years. Cumulative sales in the first five months of 2024 were 6.48 million units, This is a 3.2% increase from last year and the highest since 2021.” — Association of American Railroads, Railroad Time Index, June 7
U.S. intermodal volume up 7.6% in May 2024 Intermodal volume through May 2023 was 5.57 million units, up 8.7% (443,453 units) from the previous year and down 3.1% (180,434 units) from 2022. — Association of American Railroads, Railroad Time Index, June 7
On June 18, the American Transportation Research Institute (ATRI) released a new study identifying approaches to increase the number of female truck drivers entering and remaining in the industry. The study quantifies six key challenges facing female truck drivers and offers an action plan for the industry. According to ATRI, the plan provides “tailored steps for carriers, truck driving schools, and truck drivers” to “make truck driving careers more attractive to women.” Findings include: Trucking companies with women-only recruitment and retention programs have a higher percentage of female drivers (8.1%) than trucking companies without such programs (5.0%).According to the survey.
“While a volatile market for truckloads presents a headwind to the shift to intermodal transport, mean reversion in long-haul freight traffic still represents a significant opportunity for long-term volume growth.” [Schneider National Inc.’s] Existing intermodal capacity should facilitate growth of 20% or more without the need for significant capital investment. “SNDR has premier rail intermodal partners with UNP in the West, CSX in the East, and CPKC for cross-border access to Mexico. Importantly, management is optimistic about the sustainability of rail service and expects rising container rates to spur transshipment activity, leading to increased intermodal volumes across the country.” — Garrett Holland of Baird Equity Research in a June 17 report titled “Baird/SNDR/Holland: Management Meeting Highlights: Well Positioned for Turnaround”
“The total number of rail freight cars in the year to the end of April was 3.63 million, down 4.8% from last year. … However, excluding coal, the total number of freight cars was 2% higher than in April 2023, and has increased year-on-year in each of the past three months. … Coal accounted for 21.8% of non-intermodal rail freight in the U.S. in April, coal’s lowest share of any month. As reported by the AAR Policy and Economics Department.” — “This Summer — Aircraft and Railroad Car Investment Opportunities,” a June 10 newsletter from RESIDCO. RESIDCO is a transportation equipment leasing and asset management company that operates and manages a fleet of freight cars and locomotives.
“Not many people expected this. The Bureau of Labor Statistics released a preliminary report on June 7th. By May 2024, 272,000 new jobs were created, far more than most economists had expected. That’s up from 165,000 in April 2024. … This strong job gain is at odds with other recent economic indicators that appear to suggest the economy is slowing.” — Association of American Railroads, Railroad Time Index, June 7
Descartes Systems Group announced on June 11 that it had acquired Boxtop Technologies for $13 million. Based in Waterloo, Ontario, Canada, Descartes provides on-demand, service-based software solutions to logistics companies, while UK-based Boxtop Technologies provides shipping management solutions to small and medium-sized logistics service providers.
