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John’s Blog
September 22nd, 2009
Dear Friends,
The positive economic news continues
when looking at transportation data. The railroad industry in the US
reported that their volume was up 7.6% the first 10 weeks of the
third quarter when compared to the same period in the second quarter.
The American Trucking Association
reported mixed news saying that in July, the total truck mileage
declined 19.8% year over year. The positive spin is that this is the
least negative monthly decline since last December.
FedEx is raising pricing. Many ocean
carriers are likewise raising pricing. It seems to me that
transportation companies are looking at a coming economic improvement
and taking proactive steps to position themselves for profit
improvement.
The Conference Board’s Leading
Economic Indicator increased 0.6% which is the fifth consecutive
month of increase. For every month of increase, confidence increases
along with it.
Other good news is the drop of diesel
fuel. For the third straight week fuel prices have fallen. This
week it fell 1.2 cents to $2.622 per gallon.
I am in Chicago attending the CSCMP
Annual Conference and there is less attendance than I have seen – a
sign that companies are watching their wallets. The mood is one of
cautious optimism. After 9-11 the conference went on as scheduled
with 3,200 in attendance. This year’s attendance is 2,500. The
wreck of the economy has had a worse effect than the terrorist
attacks of 2001 on business budgets.
At Wagner we are speaking with
companies about their plans for 2010. Some are anticipating an
economic recovery and taking proactive steps in launching their
plans. Others are still sitting on the sidelines waiting to see what
will happen.
Which is the correct path? Only time
will tell.
We welcome the opportunity to visit
with you on your transportation and distribution center initiatives.
We are as close as your airport.
Have a great week!
John
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John's Blog 
