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Transportation Market News

Monthly Musings – January 2025

Industry Insights / January 23, 2025

U.S. Container Volume Totals 2,367,271 TEUs in December

Source | Descartes

  • Month-over-Month: Decreased 1.4% from November, reflecting a typical seasonal adjustment.
  • Year-over-Year: Increased 14.5% compared to December 2023, showcasing strong year-over-year growth.
  • Historical Comparison: Total U.S. imports for 2024 were 15% higher than in 2023, underscoring the sustained strength of container imports throughout the year.
  • Country of Origin: Imports from China rose 1.7% month-over-month, 14.5% higher than December 2023, reinforcing robust trade activity.

The Logistics Managers’ Index (LMI) Holds in Expansion at 57.3

Source | the-lmi.com

  • Inventory Levels: Remained at 50.0, with upstream firms showing growth at 57.9, while downstream retailers experienced contraction at 33.9, reflecting holiday season dynamics.
  • Inventory Costs: Rose 1.5 points to 70.3, signaling increased costs due to higher transportation demand and inventory repositioning.
  • Warehousing Utilization: Increased to 61.7, indicating strong storage activity as retailers prepared for holiday demand.
  • Transportation Prices: Climbed to 66.8, marking 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 52.5% (+2.1%)
  • Production: Rose to 50.3% (+3.5%)
  • Employment: Decreased to 45.3% (-2.8%)
  • Supplier Deliveries: Registered at 50.1% (+1.4%)
  • Inventories: Slightly increased to 48.4% (+0.3%)
  • Customers’ Inventories: Rose to 48.4% (+1.6%)
  • Prices Index: Grew to 52.5% (+2.2%)
  • Backlog of Orders:  Improved to 45.9% (+4.1%)
  • New Export Orders: Held steady at 48.7% (0.0%)
  • Imports: Rose to 49.7 (+2.1%)

The ATA For-Hire Truck Tonnage Declined to 111.3 

Source | Trucking.org

  • Month-over-Month: Decreased by 1.1%, following a 1.8% decline in November.
  • Year-over-Year: Contracted by 3.2%, reflecting reduced freight volumes compared to December 2023.

Key Drivers:

  • Factory Output: Ongoing sluggish manufacturing activity has contributed to declining freight demand.
  • Fleet Growth: Increased capacity among private fleets has reduced freight availability for for-hire carriers.

U.S. Retail and Food Services Sales Reach $729.2 Billion

Source | Census.gov

  • Month-over-Month:  Increased by 0.4% from November’s revised $726.3 billion.
  • Year-over-Year: Up 3.9% compared to December 2023, indicating robust consumer spending.
  • Key Drivers:
    • Motor Vehicle and Parts Dealers: Sales rose by 8.4% year-over-year, contributing significantly to the overall increase.
    • Nonstore Retailers: Experienced a 6.0% year-over-year sales increase.
    • Food Services and Drinking Places: Showed a slight cooling in growth as consumers prioritized holiday retail spending.

Cass Freight Index Insights

Source | Cassinfo.com

  • Shipments:
    • Month-over-Month: Decreased by 7.3% to 1.007, with over half of this decline attributed to seasonal factors. Seasonally adjusted, shipments fell 3.1%, reversing the 2.8% gain observed in November.
    • Year-over-Year: Declined by 6.5%, marking the largest annual drop since January 2024.
  • Expenditures:
    • Month-over-Month:  Fell by 2.6% to 3.120
    • Year-over-year: Decreased by 3.4%, a slight improvement from the 3.8% decline reported in November.
  • 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.