HomeNewsAbout CTSWhy CTSThe ProcessFAQ'sTestimonialsCase HistoriesContact CarriersIndustry LinksContact
 
Logistics Intelligence Brief
Friday, May 13, 2022

Trucking

Yellow leaders upbeat about superregional transition plan

Fleet Owner Geert De Lombaerde May 12, 2022

Yellow Corp. narrowed its net loss in the first quarter of 2022 from a year earlier and posted a small operating profit. Executives said their work to convert the company into a superregional carrier is moving closer to bearing real fruit.
President and COO Darrel Harris said the Yellow team is preparing to take the next steps in its work to integrate its linehaul network with its pickup-and-delivery (PUD) units, a plan that will trim its terminal network from 316 to about 300. The company’s operations in the West, which include more than 80 terminals, will be the first to convert to a new system, which Harris told analysts and investors on a conference call will produce “near-immediate” savings from running fewer routes and terminals as well as other efficiencies.
CEO Darren Hawkins told analysts that contracts Yellow signed in April average price increases of nearly 11%, which he said made him “comfortable” with seeing the company’s tonnage fall by about 15%. He added that Yellow’s large customers in the industrial, home improvement, and retail sectors remain confident about demand.
“We're bringing a much stronger value proposition to the market starting at the beginning of Q3,” Hawkins said of the One Yellow plan. “We will grow tonnage at this company but we will do it profitably.”

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Top trucking executives say freight recession is nowhere in sight

Logistics Management John D. Schulz May 12, 2022

Is the booming market for trucking services – truckload and less-than-truckload (LTL) – finally slowing down after an unprecedented two years of demand following the COVID-induced economic lockdown of early 2022?
To read the headlines of the financial press, one might say the answer is yes. But talk to the top trucking executives in the country, and one might find a different answer.
Top trucking executives say the fear of an economic slowdown is greater than any actual drop-off in freight volumes. Trucking traditionally has been a leading economic indicator of any indication of a recession.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Cass Transportation Index Report April 2022

Cass Information Systems May 12, 2022

Cass Freight Index - Expenditures
The expenditures component of the Cass Freight Index, which measures the total amount spent on freight, rose 0.2% m/m in April against a shipment decline of 2.6%. Compared to a year ago, total freight expenditures were up 31% y/y. Overall rates were up 2.9% (see Freight Rates, below).
On a seasonally adjusted basis, expenditures fell 2.0% m/m while shipments fell 1.0% m/m. Rates are still creeping higher.
The two-year stack compares against the worst of the pandemic shutdown, so it isn’t very meaningful, but the Expenditures component of the Cass Freight Index was up 90% over April 2020, with shipments up 27% and rates up 49%.
This index rose 38% in 2021, after a 7% decline in 2020 and no change in 2019. Tougher comparisons in the coming months will naturally slow these y/y increases, but just using normal seasonality from here, the increase in 2022 will still be about 24%.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Industry

Shippers wary over lack of clarity on Shanghai reopening

The Journal of Commerce Bill Mongelluzzo May 12, 2022

Subscription-Based

Shippers and forwarders in the Asia-US trade have mixed views about how quickly import volumes will rebound when China lifts COVID-19 factory shutdowns in Shanghai, with some anticipating a strong, sustained spike in imports, and others expecting a gradual — and more manageable — buildup in volumes along normal seasonal trends.
The strength of the recovery will determine if freight rates, which have stagnated, increase sharply as peak season approaches. On the operational side, terminal operators are concerned that if there is a sudden surge in imports, they will face a repeat of last summer when ports were congested and vessels backed up in their harbors. At the moment, that congestion has been mitigated by a recent wave of blank sailings on capacity offered to the US West Coast.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Rising Diesel Costs Are Straining U.S. Truckers, Shipping Operations

The Wall Street Journal Paul Page May 12, 2022

Subscription-Based

The national average price of diesel has risen about $2 a gallon since the start of the year and pump prices have surged past $6 a gallon in several regional markets, including New England and Central Atlantic states. In California, where historically fuel costs more than in the rest of the country, the average price was just above $6.46 a gallon last week, by the EIA measure.
“It’s going up faster than we can keep up with,” said Doug Smith, a vice president at Ralph Smith Co., a family-owned trucking company based in Bountiful, Utah. “It’s getting to the point where things are going to grind to a halt” as industrial customers reconsider projects and consumers balk at higher prices for goods.
U.S. commercial vehicles, including big rigs, burn about 36.5 billion gallons of diesel annually, according to the American Trucking Associations, and motor carriers spent about $111.6 billion on diesel fuel in 2019, the last full year for which figures were available.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Government/Safety/Sustainability

Truck OEM execs talk EV charging infrastructure pain points

Fleet Owner Cristina Commendatore May 12, 2022

The tipping point for commercial battery-electric vehicles is projected to happen around 2030. As charging infrastructure challenges loom, however, the road to commercial fleet electrification will be a bumpy one.
That was at least the sentiment heard around the Long Beach Convention Center during this year’s Advanced Clean Transportation (ACT) Expo.
Widespread EV fleet adoption is still a point of confusion for many fleets and dealers, who, in general, feel that shared views and perspectives are lacking within the industry, Mathias Carlbaum, president and CEO of Navistar, told FleetOwner.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

More Steps Needed to Reach Zero-Emission Future, Executives Say

Transport Topics Roger Gilroy May 12, 2022

Also vital is a secure, stable, efficient and clean electric grid that carriers can depend upon, said Marie Robinson, chief supply chain officer for Sysco Corp. “[A grid] where we don’t have to worry about it when there is a 110-degree heat wave in Texas,” she said. “Working together and making sure that — with our regulatory partners and elected officials — we understand the plans. Everything falls apart if we don’t have that clean, safe electric grid to depend upon.”

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Shippers/3PLs

Amazon’s freight brokerage taps MercuryGate for shipper volume

The Journal Of Commerce Eric Johnson May 12, 2022

Subscription-Based

Amazon’s truckload brokerage division Amazon Freight has begun partnering with transportation management system (TMS) provider MercuryGate to channel shipper volume from the TMS into Amazon’s network of capacity, the companies said Thursday.
The partnership will see Amazon Freight’s more than 40,000 owned trailers and its catalog of third-party carriers integrated with MercuryGate as an option for spot rates for MercuryGate’s shipper customers. It’s the first such partnership for Amazon Freight.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Economy

China’s Economic Slowdown Is Rippling All Around the World

The Wall Street Journal Jason Douglas And David Harrison May 12, 2022

Subscription-Based

For decades, the world has depended on China as a massive factory floor and market. As the country’s economic growth crumbles, the pain is spreading globally.
Lockdowns aimed at stamping out Covid-19 are throttling activity in the world’s second-largest economy. Overseas demand for China’s exports is fading as economies wrestle with surging prices and rising interest rates.
The effects of China’s slowdown are showing up everywhere from German factories to Australian tourist spots. Exports are weakening in Asia as China’s neighbors watch their largest market sag. Companies including Apple Inc. and General Electric Co. warned investors about production and delivery problems stemming from China’s troubles, as well as dwindling sales.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

News Archive



© 2009-2022 Capital Transportation Services  |  7 Wall Street Suite 200  |  Windham, NH 03087

P: 888.276.6699