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John’s Blog
6-16-10
Dear Friends,
I hope your week is going well, here’s
what’s going on in the world or transportation logistics and the
economy.
The Department of Transportation
reported that their freight transportation services index increased
4.8% in April from a year ago. This is the third consecutive monthly
increase. The April TSI reading was 98.1 compared to the low reading
of 93.5 in May of 2009. The highest reading of this index was in May
2006 when it reached 112.9.
The TSI is a seasonally adjusted index
that measures the output of transportation services of all domestic
modes of transportation.
The Council of Supply Chain Management
Professionals issued their 21st annual State of Logistics
Report last week. The report states that business logistics costs
declined in 2009 to 7.7% of the US GDP. This was following a decline
of 9.3% in 2008.
Among the facts reported, inventory
carrying costs fell 4.6% due to less inventory and historic low
interest rates. The result was a lot of empty warehouse space.
All modes of transportation were
affected last year with costs falling 20.2% below 2008 levels led by
a 9% drop in truck tonnage.
Participants in the CSCMP report said
that freight volumes improved in the fourth quarter of 2009 and are
optimistic about 2010.
In retailing the US consumer kept their
collective wallets in their pocket in May with retailing sales
falling 1.2% according to the Commerce Department. A 0.2% increase
had been expected.
On a positive note, consumer confidence
rose to the highest level in more than two years with a reading of
75.5 beating the prediction of 74.5 by forecasters.
At Wagner we continue to work on
several interesting projects and would be happy to work with you
should you have a logistics challenge. The Wagner team is ready to
tackle any distribution warehousing, fulfillment, or transportation
issues you may have. Just let me know if you would like to
collaborate.
Have a great week!
John Wagner Jr
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