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John’s Blog
7-19-10
Dear Friends,
Consumer confidence reached a one year
low according to the Reuters/University of Michigan consumer
sentiment index released last week. 66.5 was the reading compared to
June’s 76 score. Analysts had forecasted a 74 reading.
The Consumer Price Index declined 0.1%
in June as prices fell for energy, food, and other items. The “core”
consumer prices (less energy & food) increased 0.2% for a 44 year
low. With consumer confidence low and prices holding steady it looks
like a stand off between buyers and sellers.
The Federal Reserve said industrial
production increased 0.1% in June with industrial capacity at 74.1%.
Robert W. Baird & Company’s
Domestic Freight Index increased to 6.2% in May with the ATA saying
their freight index slipped 0.6% in the same month.
The Cass Freight Index said shipments
grew by 9.1% in June for a strong showing. The overall feeling is
that the freight surge is showing signs of moderation. Morgan
Stanley Research Truckload Freight Index showed that there was a
10.1% decline from May 14 through June 25th.
Equipment continues to be tight in the
Southeast and the West Coast.
In a sign that carriers are beefing up
staffs to support better 2010 business levels, for-hire trucking
hired 1,000 new workers according to the Labor Department. Overall
unemployment fell to 9.5%. Overall employment in trucking is
estimated to be 1.236 million people.
JB Hunt is bullish after posting a 22%
increase in revenue in the second quarter and doubling its profit.
Most of JB Hunt’s revenue comes from intermodal which showed strong
gains with the trucking side doing well too.
At Wagner we are seeing better revenue
numbers and are optimistic about the second half of the year. We
have also seen renewed interest in on-shoring as companies struggle
with the Asian container shortage and slow steaming combined with
tighter steamship capacity. Should you have a project for
distribution warehousing, transportation,
e-commerce fulfillment or light manufacturing/co-packing, we would
love to visit with you. Wagner’s “can do” spirit is alive and
well.
Have a great week!
John Wagner Jr
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