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Monthly Musings – May 2024

Industry Insights / May 23, 2024

Transportation Market News

U.S. Container Imports in April rose slightly to 2,208,849 TEUs

Source | Descartes

  • This notes a 3% increase in U.S. container imports from March 2024
  • The data indicates a 9.3% increase compared to the previous year.
  • Chinese imports have recovered to the levels observed in April 2023.
  • Ports on the East and Gulf Coasts have stayed steady despite global disruptions.
  • The ports of Long Beach and Los Angeles have both experienced significant volume increases.
  • Transit delays improved across major ports.
  • Compared to pre-pandemic April 2019, import volume was up 15.1%.

The Logistics Manager Index remains in expansion while dipping to 52.9

Source | the-lmi.com

  • The month-over-month decrease of -5.4% reflects the slowest rate of growth in 2024.
  • Inventory levels dropped significantly to 51.0, showing the most marginal level of expansion.
  • Warehouse capacity increased to 54.0, indicating mild expansion after a previous month of contraction.
  • Warehousing utilization fell to 55.1, and transportation utilization slightly decreased to 56.4.
  • Warehousing prices declined to 63.8, reflecting a slower rate of growth.
  • Inventory costs rose to 68.5, indicating high costs despite lower inventory levels.
  • Transportation capacity increased to 61.4, while prices contracted to 44.1, continuing the freight recession trend.

US Manufacturing PMI® fell to 49.2, indicating contraction after one month of expansion.

Source | ISM.com

  • This marks a 1.1% decrease from March.
  • Other notable monthly trends:
    • New orders:49.1 (-2.3%)
    • Production: 51.3 (-3.3%)
    • Employment: 48.6 (+1.2%)
    • Supplier Deliveries: 48.9 (-1.0%)
    • Inventories: 48.2 (no change)
    • Customers’ Inventories: 47.8 (+3.8%)
    • Prices: 60.9 (+5.1%)
    • Backlog of Orders: 45.4 (-0.9%)
    • New Export Orders: 48.7 (-2.9%)
    • Imports: 51.9 (-1.1)

The ATA For-Hire Truck Tonnage Index fell to 111.7

Source | Trucking.org

  • This is a 1.5% year-over-year decrease.
  • This is the 14th consecutive month of decline.
  • The index also decreased by 1.2% from March’s reading of 113.1.
  • The continued softness in the truck freight market may lead to additional capacity exiting the industry.

U.S. Retail and Food Services Sales Reached $705.2 Billion.

Source | Census.gov

  • This is virtually unchanged (+0.4%) from the revised March report at $705.1 billion.
  • Total sales for February through April 2024 increased by 3.0% compared to the same period last year.
  • Retail trade sales were unchanged from March 2024 but up 2.7% from the previous year.
  • Nonstore retailers saw a 7.5% increase from last year, while food services and drinking places were up 5.5%.

Cass Freight Index Declined 1.3% MoM, and 4% YoY.

Source | Cassinfo.com

  • Shipments also decreased by 4.0% year-over-year.
  • Expenditures remained unchanged from March but fell by 16.8% compared to April 2023.
  • These figures reflect continued soft demand in the freight market, consistent with broader economic trends.