HomeNewsAbout CTSWhy CTSThe ProcessFAQ'sTestimonialsCase HistoriesContact CarriersIndustry LinksContact
Thursday, May 14, 2020
Logistics Intelligence Brief
Brought to you by the YRCW Family of Companies

Trucking

Cass Transportation Index Report April 2020

Cass Information Systems May 13, 2020

Cass Freight Index - Shipments Shipment volumes dropped 22.7% vs April 2019 levels (Chart 1), and we believe this will mark the bottom. May should be better, as the U.S. economy slowly begins to re-open and some manufacturing plants turn back on (many automotive OEMs are targeting plant re-openings in the next week or two). Among the carriers, April was much like March in that if you moved groceries, home improvement, e-commerce, and consumer staples, you had steady demand, while restaurant, auto, and (mall) retail were essentially not moving anything.

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

Worst truckload linehaul data in 15 years may mark the bottom

Freight Waves Todd Maiden May 13, 2020

The chorus of an April bottom is growing. Many trucking execs were on hand at the Bank of America Transportation and Industrials Conference earlier this week, voicing optimism around the pending economic restart.

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

Investor conference highlights trucking headwinds, tailwinds as economic restart looms

Freight Waves Todd Maiden May 13, 2020

Werner’s dedicated business is heavily tied to discount stores, which remained open. While volumes slowed in April, following a mid-March surge as shelter-in-place mandates spread, the carrier is seeing signs of improvement as a phased reopening is nearing. Leathers believes that the rebound is near, but the second quarter will be tough. He believes carrier failures and continued firmness in TL fundamentals through the back half of the year will present a market that is “considerably better than it has been in a long time.”

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

Werner to digitally connect drivers, shippers

The Journal of Commerce William B. Cassidy May 13, 2020

Truckload carrier Werner Enterprises is rolling out a new technology platform that will make the carrier even more driver-centric, and offer improvements in shipment visibility to shipper customers as well. Called Werner Edge, the platform is an attempt to apply technology more 'holistically' to gain greater benefits across its business, Danny Lilley, Werner’s vice-president of fleet systems and technology, told JOC.com. The carrier is calling Werner Edge not just a platform, but its 'innovation arm' where it will test new technologies, ideas, and processes. Development of the platform tracks the often-identified need to replace data 'silos' within companies and between partners across enterprises with more 'circular' data-sharing.

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

Small Settlements’ Impact Tops ATRI’s Research Priorities List

Transport Topics Eleanor Lamb May 13, 2020

The impact of small settlements on the trucking industry topped the list. As a follow-up to ATRI’s work on “nuclear verdicts,” this study will focus on legal settlements of less than $1 million. Nuclear verdicts are those in which juries award large sums, usually more than $10 million. ATRI President Rebecca Brewster said the group plans to have research pertaining to nuclear verdicts available in June. RELATED: Trucking Takes on Emerging Challenges Specifically, ATRI’s research will assess small settlements’ frequency, fleet responses to these settlements, and the consideration of verdicts versus settlements. This topic also aligns with American Trucking Associations’ tort reform efforts associated with these kinds of verdicts. Link:  American Transportation Research Institute ATRI Board Approves 2020 Top Research Priorities

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

Shippers/3PLs

Armstrong & Associates releases report on trends in 3PL/shipper relationships.

Logistics Management Patrick Burnson May 13, 2020

Market sizing for both Global and Domestic Fortune customer 3PL revenues is included in the report. Global Fortune 500 customer 3PL revenues reached $371.3 billion in 2019, led by the Technological and Automotive industries, accounting for $102.3 billion and $79.6 billion, respectively. Fortune 1,000 3PL revenues of $166.8 billion comprise nearly 80% of the total domestic U.S. 3PL market. 3PL revenue growth trends for nine major customer industry subsegments are provided. In 2019, the 3PL revenues from the Retailing and Technological industries dominated, representing $40.1 billion and $38.2 billion. 3PL revenues by customer industry for both Domestic and Global Fortune companies from 2010 through 2020E are included.

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

Online purchases continue to increase during the pandemic

Digital Commerce 360 Tabitha Cassidy May 13, 2020

The data reveals that online purchases have increased for traditional chain stores, traditional department stores and digital natives both year over year and month over month. Department stores include those brands that first launched as a bricks-and-mortar store across a variety of categories such as TJ Maxx (No. 64 in the 2020 Digital Commerce 360 Top 1000) and J.C. Penney (No. 32); chain stores are also stores that launched as bricks-and-mortars but sell products focused around only a few categories, such as CVS (No. 118) and Sephora; and digital natives are stores that first launched The data reveals that online purchases have increased for traditional chain stores, traditional department stores and digital natives both year over year and month over month. Department stores include those brands that first launched as a bricks-and-mortar store across a variety of categories such as TJ Maxx (No. 64 in the 2020 Digital Commerce 360 Top 1000) and J.C. Penney (No. 32); chain stores are also stores that launched as bricks-and-mortars but sell products focused around only a few categories, such as CVS (No. 118) and Sephora; and digital natives are stores that first launched with an online store. with an online store.

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

Industry

Prospects of US freight recovery fade on new COVID-19 stings

The Journal of Commerce Mark Szakonyl May 13, 2020

As some states ease stay-at-home orders despite the lack of testing and contact tracing, threatening flare-ups of the coronavirus disease 2019 (COVID-19), the prospect of a significant US freight recovery this year is fading. Equally alarming are the hits various transport sectors have already taken due to the volume drop, hinting at the scale of pending damage for the rest of the year. US ports are projecting a 20 to 30 percent drop in container volumes in the first half of 2020, according to the American Association of Port Authorities (AAPA). The Global Port Tracker report on May 8 downgraded the outlook for import volumes even further, dispelling hopes for a peak season as it forecasts double-digit year-over-year volume declines each month until September. And even then, volume will fall 9.3 percent over 2019, according to the report created by Hackett Associates on behalf of the National Retail Federation.

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

COVID-19 shift to major surge in residential deliveries is impacting operations for parcel carriers

Logistics Management Jeff Berman May 13, 2020

That was the main takeaway from a recent report in The Loadstar, which observed that large shipper users of SmartPost are seeing reductions in equipment allocation from the Memphis-based carrier. This has been the narrative in industry circles, with parcel stakeholders observing that FedEx has been capping its weekly pickups and volumes, with volumes running as high as Peak Season levels. John Haber, founder and CEO of Atlanta-based Spend Management Experts, a transportation, distribution and fulfillment spend management consultancy, noted that with FedEx having separate Ground networks between Home Delivery, Commercial, and SmartPost, things are being exacerbated by the huge shift from commercial to residential and the massive influx of e-commerce volumes all while integrating the SmartPost deliveries into their delivery network rather than the USPS.

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

Maersk Expects Container Shipping Volumes to Fall Up to 25%

The Wall Street Journal Cotas Paris and Dominic Chopping May 13, 2020

A.P. Moeller-Maersk A/S expects container volumes to fall up to 25% this quarter and plans to cancel dozens of sailings as the Danish shipping giant copes with sliding demand in consumer and industrial markets from the coronavirus pandemic lockdowns. Maersk, which moves 17% of all containers world-wide, posted better-than-expected first-quarter earnings on Wednesday as cost cuts, lower fuel outlays and higher freight rates helped offset the demand slump.

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

Oil Shrugs Off First Decline in US Inventories Since January

Bloomberg/Transport Topics Olivia Raimonde and Alex Longley May 13, 2020

“There still is downside risk in the near term due to the demand side as the normalization of the economy could well be quite choppy and uneven throughout America,” said Bart Melek, head of commodity strategy at Toronto Dominion Bank. The EIA also reported that supplies at the key U.S. storage hub in Cushing, Okla., fell by 3 million barrels last week. The discount on crude for June delivery relative to July, a structure known as contango, is at its tightest since March, suggesting that concerns around brimming storage capacity are easing.

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

Pre-merger surge drives Nikola value to $12 billion

Freight Waves Alan Adler May 13, 2020

Before building a single vehicle for sale, the valuation of fuel cell electric truck maker Nikola Corp. quadrupled to about $12 billion during a week of frenzied trading in shares of its merger partner. Double-digit daily upward moves in VectoIQ, the NASDAQ-traded holding company that is acquiring Nikola in a reverse merger, sent VTIQ shares as high as $35.38 early on May 13 compared with a closing price of $14.12 on May 6.

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

Government/Safety

FMCSA Extends HOS Emergency Declaration for Second Time

Transport Topics Eleanor Lamb May 13, 2020

The Federal Motor Carrier Safety Administration has again extended its emergency declaration relaxing hours-of-service rules for motor carriers that are providing direct assistance in support of coronavirus-related relief efforts. The agency announced May 13 that the emergency declaration, which applies to all 50 states and the District of Columbia, will remain in effect through June 14. The initial emergency declaration, issued March 13, was previously extended through May 15. The initial declaration granted exemption from Parts 390-399 of the Federal Motor Carrier Safety Regulations, which cover hours of service, parts and accessories needed for safe operation, and longer combination vehicles.

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

Backlog of CDL testing could create a chokepoint for driver hiring later this year

CCJ Aaron Huff May 12, 2020

Currently, about 18 states have not reopened their DMVs to issue commercial learners permits (CLP), written tests and conduct CDL skills exams for student drivers. California, Pennsylvania and New Jersey are among those that have not re-opened. States that have opened are not operating their DMVs at full capacity, said Don Lefeve, president and CEO of CVTA.

Share This: Share on Twitter Share on Facebook Share on LinkedIn
YRC Freight Holland New Penn Reddaway

News Archive



© 2009-2020 Capital Transportation Services  |  7 Wall Street Suite 200  |  Windham, NH 03087

P: 888.276.6699  |  F: 603.893.4609