John’s Blog

4-26-10

Dear friends,

Is the economy really getting better?

As we look for positive signs, the best news from last week was that existing home sales increased for the first time in four months. Sales of existing homes increased 6.8% according to the National Association of Realtors.

The Labor Department said that prices paid to U.S. Producers increased 0.7% in March following a 0.6% decrease in February. If the PPI continues to trend upward it would reflect a solid demand for goods which would translate to more freight for carriers.

On the other hand durable goods orders fell in March but if you exclude transportation equipment, orders actually increased 2.8%. This is the largest increase since the December of 2007.

Many carriers are reporting “stronger than expected” results including Union Pacific, J.B. Hunt, Landstar, UPS and others.

ABF reported a first quarter loss of $21.4 million last week and is negotiating with the Teamsters for a similar wage concession as YRC. The LTL industry continues to struggle with over capacity while the truckload segment tightens up.

The Department of Energy reported diesel’s national average pump price increased for the ninth time in 10 weeks, rising 0.4 cent to $3.078 a gallon. As the economy improves expect fuel prices to continue to increase.

At Wagner we have some capacity within our distribution center network and would appreciate the opportunity to work with you on any distribution warehousing, fulfillment, or transportation projects.

Wagner’s seasoned team is supported by RedPrairie technology and can tailor a program for you.

Have a great week!

John