Transportation Market News

February Economic Insights White Paper

U.S. Container Import Volumes Reach Record High of 2,487,470 Import TEUs

Source | Descartes

• Month-over-Month: Increased by 5.1%
• Year-over-Year:  Rose by 9.4%
• Port Activity: The Port of Long Beach led growth with an increase of 85,008 TEUs, followed by New York/New Jersey (up 68,167 TEUs) and Seattle (up 16,858 TEUs).
• Country of Origin: Imports from China increased by 10.6% as importers moved goods ahead of the new tariffs.

Logistics Managers’ Index (LMI) Climbs to 62.0

Source | the-lmi.com

• Inventory Levels: Increased to 58.5 (+8.5), driven by a significant 22.2-point surge in downstream retail inventories.
• Inventory Costs: Climbed to 70.2 (+8.5), reflecting higher expenses associated with repositioning inventory closer to consumers.​
• Warehousing Utilization: Advanced to 68.3, indicating demand for storage space.
• Warehousing Prices: Jumped to 73.1 (+5.1), the highest level since October 2023.
• Warehouse Capacity: Expanded slower, registering 51.7 (-5.2).
• Transportation Utilization: Increased to 60.1, suggesting heightened use of transportation resources.​
• Transportation Prices: Climbed to 66.8, the fastest expansion since April 2022, driven by strong e-commerce and last-mile delivery demand.
• Transportation Capacity: Held steady at 52.0, reflecting balanced availability amid peak shipping season pressures.

The U.S. Manufacturing PMI® rose to 49.3%, Indicating Slower Contraction

Source | ISM.com

• New Orders: Increased to  55.1% (+3.0%)
• Production: Rose to 52.5% (+2.6%)
• Employment: Improved to 50.3% (+4.9%)
• Supplier Deliveries: Slightly slower at 50.9% (+0.8%)
• Inventories: Contracted to 45.9% (-2.5%)
• Customers’ Inventories: Remained unchanged at 46.7%
• Prices Index: Grew to 54.9% (+2.4%)
• Backlog of Orders: Decreased to 44.9% (-1.0%)
• New Export Orders: Grew to 52.4% (-1.0%)
• Imports: Rose to 51.1% (+1.4%)

The ATA For-Hire Truck Tonnage Remains Unchanged

Source | Trucking.org

• Overall Index: Held at 111.9, unchanged from December, despite challenges such as severe winter storms and California wildfires.

• Key Highlights:

  • Year-over-Year Comparison: Increased by 0.3% from January 2024, marking the first annual gain since August. ​

  • Not Seasonally Adjusted Index: Rose to 110, up 1.1% from December’s 108.9, indicating resilience amid adverse conditions.

U.S. Retail and Food Services Sales Decline to $723.9 Billion

Source | Census.gov

• Month-over-Month: Decreased by 0.9%, reflecting a typical post-holiday slowdown.
• Year-over-Year: Increased by 4.2% compared to January 2024, indicating continued strength in consumer demand.
• Key Drivers:
  • Motor Vehicle and Parts Dealers: Sales increased 6.4% year-over-year, highlighting steady demand in the automotive sector.
  • Retail Trade Sales: Declined 1.2% month-over-month as consumers pulled back after the holiday season but remained 4.0% higher year-over-year.
  • Food Services and Drinking Places: Sales climbed 5.4% year-over-year, reflecting a resilient dining sector even as discretionary spending slowed.

Cass Freight Index Insights

Source | Cassinfo.com

• Shipments:
  • Month-over-Month: Decreased 5.3%, reflecting seasonal slowdowns and adverse weather conditions.
  • Year-over-Year: Declined by 8.2%, marking continued softness in freight demand.
• Expenditures:
  • Month-over-Month: Fell 4.8%, following a similar decline in shipment volumes.
  • Year-over-year: Dropped 4.2%, as lower volumes and market conditions pressured freight spending.
• Inferred Freight Rates:
  • Month-over-Month: Increased by 5.1%, marking the fourth consecutive monthly rise.
  • Year-over-year: Rose by 3.3%, the first annual increase in two years.