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Transportation Market News

Monthly Musings – December 2024

Industry Insights / December 20, 2024

December 2024 Economic Insights White Paper

U.S. Container Volume Totals 2,368,758 TEUs in November

Source | Descartes

  • Month-over-Month: Decreased 5% from October, marking the first dip below 2.4 million TEUs in four months.
  • Year-over-Year: Increased 12.8% compared to November 2023, showing strong year-over-year growth.
  • Historical Comparison: Volumes remain 24.6% higher than pre-pandemic November 2019 levels, highlighting long-term resilience.
  • Country of Origin: While imports from China saw a month-over-month decline, they remained 13.3% higher compared to November 2023.

The Logistics Managers’ Index (LMI) Holds in Expansion at 58.4

Source | the-lmi.com

  • Inventory Levels: Decreased to 56.1, reflecting a typical seasonal decline as goods move through supply chains to retailers and consumers.
  • Inventory Costs: Rose 2.9 points to 68.8, signaling higher holding costs, driven by more inventory positioned closer to end consumers.
  • Warehousing Utilization: Dropped 4.0 points to 58.9, showing a slowdown in warehousing space usage.
  • Transportation Prices: Slightly decreased by 0.3 points to 63.8, indicating a slower rate of price increases for transportation services.
  • Transportation Capacity: Increased by 1.7 points to 52.6, pointing to a modest rise in available transportation resources.

U.S. Manufacturing PMI® Rises to 48.4% in November

Source | ISM.com

  • New Orders: Grew to 50.4% (+3.4%)
  • Production: Increased slightly to 46.8% (+0.6%)
  • Employment: Rose to 48.1% (+3.7%)
  • Supplier Deliveries: Fell to 48.7% (-3.3%)
  • Inventories: Climbed to 48.1% (+5.5%)
  • Customers’ Inventories: Increased to 48.4% (+1.6%)
  • Prices Index: Dipped to 50.3% (-4.5%)
  • Backlog of Orders: Decreased to 41.8% (-0.5%)
  • New Export Orders: Improved to 48.7% (+3.2%)
  • Imports: Declined to 47.6% (-0.7%)

The ATA For-Hire Truck Tonnage Index Dropped to 114.6

Source | Trucking.org

  • Month-over-Month: Dropped by 1.9% from October, moving from 114.6 to 112.5.
  • Year-over-Year: The index decreased by 1% compared to November of the previous year.
  • Not Seasonally Adjusted Index: The not seasonally adjusted index fell to 109.6 in November, marking a 9.6% decline from October.

U.S. Retail and Food Service Sales Reach $724.6 Billion in November

Source | Census.gov

  • Month-over-Month: Increased by 0.7% from October’s revised $719.7 billion.
  • Year-over-Year: Up 3.8% compared to November 2023, driven by record-breaking Black Friday sales
  • Key Drivers:
    • Motor Vehicle and Parts Dealers: Sales rose by 2.6%, contributing significantly to the overall increase.
    • Nonstore Retailers: Experienced a 1.8% sales increase, reflecting strong e-commerce activity during the holiday season.
    • Food Services and Drinking Places: Noted a slight decline in sales as spending shifted towards retail and holiday purchases.

Cass Freight Index Insights

Source | Cassinfo.com

  • Shipments:
    • Month-over-Month: Increased slightly by 0.5% to 1.086
    • Year-over-Year: Declined by 0.7%
  • Expenditures:
    • Month-over-Month: Rose by 0.9% to 3.203
    • Year-over-Year: Decreased by 3.8%
  • Inferred Freight Rates:
    • Month-over-Month: Grew by 0.4%
    • Year-over-Year: Fell by 3.1%