We do this by having an extremely high give a dang level, proactive communication, and shooting straight – even if the news isn’t great
DO YOU ENJOY THIS NEWSLETTER AND WORKING WITH MFW? REFERRALS ARE OUR BIGGEST COMPLIMENT. PLEASE, DON’T BE SHY. SEND THIS TO ONE FRIEND NOW!
Noteworthy news bullets we thought you’d enjoy
- The Manufacturing sector contracted in July for the ninth consecutive month (source: Institute for Supply Management)
- The July Manufacturing PMI registered a 46.4 percent reading, which was 0.4% higher than June.
- The New Orders Index remained in contraction territory at 47.3 percent, which was 1.7 points higher than the 45.6 percent reading in June.
- Economic activity in the services sector expanded in July for the seventh consecutive month (source: Institute of Supply Management)
- July’s Services PMI registered 52.7 percent, 1.2 points lower than June’s reading of 53.9 percent. The sector has grown in 37 of the last 38 months.
- Minor declines in the July Cass Freight Index report (source: Cass Information Systems)
- The shipment component of the Index fell 2.2% month over month in July, and 8.9% year over year.
- The expenditures component, which measures the total amount spent on freight, fell 2.8% month over month and 24.4% year over year in July.
- The expenditures component rose 23% in 2022, and a record 38% in 2021, but is set to decline about 18% in 2023.
- Retail Sales see increase in July (source: Retail Dive)
- Total retail sales rose 5.4% year over year in July, as e-commerce skyrocketed 11.8%, per the U.S. Department of Commerce.
- The total is not adjusted for inflation, and there is widespread belief that consumers are spending more to get less.
- US. July Container Imports Rise, Echoing Pre-Pandemic Trends (source: Descartes Systems Group)
- US. container imports for July 2023 saw a 5.1% increase compared to June, reaching 2,187,810 twenty-foot equivalent units (TEUs).
- These figures represent a 13.6% decline from July 2022, but closely represent the pre-pandemic rates of July 2019.
- Cargo Theft Crisis Peaks, Industry Acts (source: Freight Caviar)
- In Q2 2023, cargo theft in the US and Canada surged to a 10 year high, with 582 reported incidents, valued at $44 Million. This represented a 57% increase from Q2 2022. Strategic thefts involving stolen identities are the main culprits.
- Northeast Shipping Slump (source: U.S. Bank)
- S. Bank data shows a 27% drop in Northeast regional shipments in Q2 year over year, surpassing the 25% drop during Q2 of 2020. This decline is attributed to reduced housing starts, lower household consumption, and a manufacturing slowdown.
- While most regions in the U.S. have seen shipment declines, the Southwest stands out with a nearly 15% increase, driven by strong cross-border truck traffic with Mexico.
- A Steady Decline in China’s Share of U.S. Goods (source: The Wall Street Journal)
- The first half of 2023 marked the lowest percentage of U.S. imports from China, with China representing 13.3% of U.S. imports compared to the peak of 21.6% in 2017.
- There has been a noticeable shift of production to other Asian countries, particularly Southeast Asian nations and Inda, with these nations combining to exceed China’s share of U.S. imports starting in early 2019.
- Mexico’s free-trade agreement with the U.S. and Canada, coupled with trends toward shorter supply chains post-pandemic has propelled it to match China’s share of U.S. imports in the first half of 2023.
- Fuel jumps to $4.389 a Gallon (source: U.S. Energy Information Administration)
- The price of diesel has jumped $0.484 in the past month, but on average still costs $0.520 less than it did at this time last year.