Trucking News

Noteworthy news bullets we thought you’d enjoy

• July ISM manufacturing output trends down but remains at a high level (source: Logistics Management)
  • In its monthly Manufacturing Report on Business, ISM said that the report’s key metric, the PMI, came in at 59.5 (a reading of 50 or higher indicates growth), falling 1.1% from June to July.
  • This represented the 14^th consecutive month of growth for the overall economy.

• July ISM Services PMI reading sets new record (source: Logistics Management)
  •  A strong stretch of growth in the services sector over the past few months has hit an apex in July, according to the latest ISM Services report conducted by the Institute for Supply Chain Management (ISM).
  • The July Services # is 4.6% above the 12 month moving average of 59.5.
  • ISM reported that 16 of the 18 service sectors saw growth in July, while the two that did not grow remained steady.

• Freight shipping spend reaches record high as capacity constraints persist: US Bank (source: Supply Chain Dive)
  • Money spent on truck shipments reached its highest level on record in Q2 as capacity constraints and rising fuel prices collided with increased industrial output, per the US Bank Freight Payment Index.
  • The index, which tracks LTL and truckload freight modes, increased 10.1% from Q1 to 233.6.
  • All U.S. regions saw an increase from Q1, with the Northeast leading the way at 14.6%.

• LA-LB terminals sound congestion alarm well ahead of peak season (Source: The Journal of Commerce)
  • There were 26 container ships waiting at anchor for berthing space on 7/27/21. The peak number of vessels at anchor was 40 in February, but had decreased steadily and was hovering in the mid-teens until last week.
  • Los Angeles and Long Beach terminals have averaged 855,411 TEU per month for the last 12 months, compared to 697,892 TEU in pre-pandemic 2019.

• Asia-West Coast container rates hit new high ahead of surcharges (source: The Journal of Commerce)
  • The average price to ship an FEU from Shanghai to Los Angeles reached $10,503 on 7/29, the first time it has crossed over the $10,000 ceiling. Spot rates per FEU were below $3,000 a year ago, and below $1,500 in 2019.
  • The average rate to ship an FEU from Shanghai to New York surged 13.1% to $13,434. Last year, this cost $3,400 and in 2019 was $2,800.

• Class 8 truck orders steady in July (source: Transport Topics)
  • Due to the lengthy near 12-month lead time, challenges recruiting drivers, and cautious approach taken by the truckers as to how long this trucking boom will last, Class 8 truck orders remain steady relative to the rise in rates and shipping volumes seen in 2021.
  • July’s sales number of 16,824 was greater than the 14,462 number from last July. However, it was the second lowest of the year, with February being the lowest.

• Sharpie maker says manufacturing in the US helped it avoid snarled supply chains (source: Supply Chain)
  • MFW Customer, Newell Brands, reported that manufacturing in the US allowed the company’s writing business unit to be better positioned than “at least one” of their competitors, which imports product from Asia.
  • The lack of supply chain issues led CFO Chris Peterson to say, “supply could be a real benefit” in the writing unit, allowing them to gain market share on gel pens and other writing utensils.

• Diesel Dips 0.3 cents to $3.364 a Gallon (source: Transport Topics)
  • Trucking’s main fuel declined in price for the second time in the past three weeks after rising for 12 straight weeks from May 3 to July 19.
  • A gallon of diesel now costs 93.6 cents more than it did at this time last year.

• Demand for drivers and trucks expected to last for rest of 2021 (source: DAT.com)
• • As shippers struggle to replenish depleted inventories and import volumes at ports continue to experience delays, truckload demand shows no sign of slowing down.
  • Spot market load post volumes are still 31% higher than this time last year and even 85% higher than the same period in 2018.

• New association aims to build pipeline of truck drivers, technicians (source: Transport Dive)
  • The Next Generation in Trucking Association officially launched on 7/13/2021.
  • The association has a nationally registered apprenticeship program through the Labor Department, and trucking companies and technical colleges can partner with the association.