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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
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