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Trucking News

MFW Musing’s – February 17, 2022

Industry Insights / February 17, 2022
MFW makes the wheels of transportation FAR less squeaky
We do this by having an extremely high give a dang level, proactive communication, and shooting straight – even if the news isn’t great

Noteworthy news bullets we thought you’d enjoy

  •  Class 8 Sales in January plummet compared with January of 2021 (source: Transport Topics)
    • Class 8 U.S. retail sales in January were 21,300 compared with 42,307 a year earlier.
  • Many experts believe the dip is a result of more discipline by the truck makers not accepting orders they could not fulfill.
  • January freight shipment and expenditure readings feel impact of Omicron variant, says Cass (source: Logistics Management)
    • U.S. freight volumes reeled in January from the surge in Omicron cases, dropping 7.4% from December.
  • Tim Denoyer, ACT Research vice president wrote, “while these effects are lingering in February, they are beginning to fade and we expect a rebound in the coming months as case counts fall sharply.
  • Diesel Tops $4 a Gallon with $0.068 hike (source: Transport Topics)
    • Fuel costs $1.143 more for a gallon than it did this time in 2021.
  • Receding imports to ease US port congestion, but not until late 2022 (source: The Journal of Commerce)
    • It is believed that only macro trends will make a meaningful difference in easing congestion in 2022.
    • Sustained moderation in volumes
    • Easing in the massive dislocation/congestion of ocean assets
    • Reduction in the negative impact of COVID on the workforce.
  • Product returns rate jumps to 16% of total U.S. retail sales
    • Retail returns hit 16.6% of total U.S. retail sales in 2021 – an increase of 10.6% from 2020.
    • E-commerce returns were 20.8% of total ecommerce retail sales, which stayed flat from 2020. E-commerce sales accounted for less than a quarter of total retail sales in 2021.
  • Manufacturing starts 2022 with continued growth, reports ISM (source: Logistics Management)
    • New orders, commonly referred to as the engine that drives manufacturing, slipped 3.1% from December to 57.9, representing growth for the 20th consecutive month.
    • January was only the second time in the last 19 months in which new orders did not eclipse a reading of 60.
  • Yellow adds driver schools, eyes training 1,000 drivers in 2022 (source: Freight Waves)
    • The tuition-free centers provide in-class training and behind-the-wheel instruction.
    • After the course, the driver candidates will be ready for CDL testing. Once the test is passed, trainees will complete a Department of Labor certified apprenticeship with the company’s veteran drivers, eventually joining Yellow’s fleet as a professional driver.
  • Early estimates: US ecommerce grows 14.2% in 2021 (source: Digital Commerce 360)
    • Consumers spent 871.03 billion online with U.S. merchants in 2021, up 14.2% from the $762.68 billion in 2020.
    • It’s noteworthy that the industry experienced further gains in 2021 after seeing a 31.8% spike in 2020.