|
John’s Blog
9-13-10
Dear Friends,
Positive news continues in
transportation logistics which is keeping track with the modest
economic gains I am seeing.
The Commerce Department reports that
the US trade gap retreated 14% to $42.8 billion in July. The June
figure was $49.8 billion so exports have increased nicely. The
question is it sustainable? Congress has a number of Free Trade
Agreements to pass if they are serious about keeping this going.
On the jobs front, the Labor
Departments says that claims for jobless benefits decreased 27,000 to
451,000 in the week ending September 4th. The four week
moving average decreased 9,250 for 477,750 jobless claims. The
market is still very poor for jobs and this will constrain consumer
spending. The good news is that this is the fourth straight week of
decline so we have a slow trend in a positive direction.
Wholesale inventories increased by 1.3%
in July according to the Commerce Department signaling some
confidence in the recovery. This is the highest point in two years.
Wholesalers make up 30% of all US
business inventories with retailers and manufacturers carrying the
remainder. In the first quarter of 2010 the economies 3.7% growth
came from restocking activities. It is now expected to have peaked.
The DOT freight Transportation Services
Index (TSI) went up 2.5% year over year in July for a 5th
straight gain. The TSI increased 0.4% from June to July. Year to
date the index has a 98.2 reading reflecting a 1.3% decline meaning
that freight movement is still in a recovery mode.
FTR Associates’ Trucking Conditions
Index came in at 0.8 in July for the 5th straight month
above neutral. FTR expects trucking conditions to remain positive
for the remainder of the year. The truckers who survived the
recession now are in a better position to prosper.
In a surprise move YRC announced that
they are going for a 5.9% price increase on their current tariff
effective September 20th. The current YRC rates are low
and they must increase revenue in order to be able to afford
resumption of their Teamsters pension payments in January. The
possibility remains that YRC could go after another increase in
January 2011 which is when LTL companies traditionally announce their
increases.
No other LTL companies have made rate
increase announcements as of now.
At Wagner, transportation operations
are busy helping clients to find needed capacity during this period
of heavy shipping. Distribution center operations are also seeing
increased volume across the Wagner network. E-Commerce fulfillment is
humming along with volume up as well keeping in line with the season.
As you plan for 2011 please consider
inviting Wagner to your stable of service providers. You will like
working with us.
Have a great week!
John Wagner Jr
|
