Trucking News

Noteworthy news bullets we thought you’d enjoy

• US ecommerce grows 7.3% in Q2 2022 (source: Digital Commerce)
  • Q2 marked the fourth straight quarter of single digit growth following the 45-50% jumps during the first year of the pandemic.

• August manufacturing output shows steady growth, reports ISM (source: Logistics Management)
  • New orders, which are commonly referred to as the engine that drives manufacturing rose 3.3% to 51.3, growing after two months of contraction.
  • Production, at 50.4, grew, at a slower rate, for the 27^th consecutive month.

• Containership Backlog Outside L.A. Ports Is Almost Cleared (source: Bloomberg/Transport Topics)
  • Eight vessels were in the official queue as of August 29^th, according to data from the Marine Exchange of Southern California & Vessel Traffic Service Los Angeles and Long Beach.
  • That number is down from a record of 109 set in January and about 40 lined up a year ago.
• East Coast, Texas Ports Gain as Retailers Skirt Pacific Gridlock (source: Bloomberg/Transport Topics)
  • The number of inbound containers at Eastern ports rose about 9% in the first half of the year compared to the same period in 2021.
  • Volumes through Houston were up 22%, according to the National Retail Federation.
  • Imports through the West Coast were down 0.1%.

• Ocean Shipping Rates Have Plunged 60% This Year (source: The Wall Street Journal)
  • Freight rates on the main ocean trade routes are sinking during what is typically industry’s peak season after cargo owners shipped holiday goods early and inflation dented consumer demand.
  • The cost to ship a 40-foot container from China to the West Coast now stands around $5,400 a box, down 60% from January, according to the Freightos Baltic Index.
• Class 8 Orders in August Mark Year’s High Point (source: Transport Topics)
  • Class 8 orders in August climbed to the highest level in 2022 as they rebounded from July’s low point of the year, but trailed far behind the year ago level, ACT Research reported.
  • Orders reached 21,600, compared with 37,096 in the 2021 period. July’s orders were 11,025.
• Commerce and NRF data points to retail sales growth in August (source: Logistics Management)
  • NRF calculation of retail sales points to sales increasing 0.1% over July, and up 8% annually.
  • “Household spending remains steady even as costs continue to rise,” NRF Chief Economist Jack Kleinhenz said in a statement. “Consumers continuing to spend more each month points to the benefits of strong job and wage growth and their use of pandemic savings to handle persistent elevated prices. Consumers are showing their toughness but they have limited options and cannot continue if prices do not begin to soften.”

• POLA and POLB turn in solid August volumes (source: Logistics Management)
  • Total August POLA volume was off 15% compared to August 2021, with imports being the main driver for the decrease. Exports were down only 1%.
  • “Some goods that usually arrive in August for the fall and winter season shipped earlier to make sure they reached their destination in time,” Port of LA Executive Director Gene Seroka said. “Additionally, inflationary concerns and elevated inventory levels have made some retailers and e-commerce sellers more cautious.”
• Truck Tonnage in August Surges 7.4% Year-Over-Year (source: Transport Topic)
  • “Tonnage snapped back in August after a weaker than expected July,” ATA Economist Bob Costello said. “With the economy in transition to slower growth and changing consumer patterns, we may see more volatility in the months ahead. But the good news is that we continue to witness areas of freight growth in consumer spending and manufacturing, which is helping to offset the weakness in new home construction.”

• Diesel dips below $5 a gallon (source: Fleet Owner)
  • The U.S. average for diesel fuel slid below the $5 per gallon mark for the week of 9/19, marking the continuation of almost three months of declines – settling at $4.964 per gallon.
• High Schools aim to teach next generation of truck drivers (source: Transport Dive)
  • More high schools are exploring truck driving programs as the industry looks to recruit and train the next generation of drivers.
  • Patterson High School in Patterson, California, is one of the first non-vocational high schools to offer a truck driving program. The course, an elective for seniors, is offered in partnership with Morning Star Trucking to provide students with behind-the-wheel training and potential employment opportunities.