While motor carriers continue to work hard to fill driver seats, data issued today by the American Trucking Associations (ATA) is showing that the efforts are showing signs of paying off more so than usual. ATA reported that the annualized turnover rate for large truckload carriers, which it defines as truckload fleets with more than $30 million in revenue for the fourth quarter of 2016 was down 10 percent compared to same timeframe in 2015 at an annualized rate of 71 percent, which it said marks its lowest rate in six years.
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The head of the Bank of Canada says he is still keeping a close eye on risks to the economy even after a string of healthier-than-expected numbers. The remarks by Governor Stephen Poloz on Tuesday followed a speech in Oshawa, Ont., where he made the case for a policy mix frequently promoted by the federal government – an openness to more foreign investment, immigration and free trade.
The Association of American Railroads (AAR) today released an assessment of trade’s impact on the freight railroad industry, finding that at least 42 percent of rail carloads and intermodal units, and more than 35 percent of annual rail revenue, are directly associated with international trade. Approximately 50,000 domestic rail jobs, accounting for more than $5.5 billion in annual wages and benefits, depend directly on international trade, the analysis of 2014 data also found. If rail traffic indirectly associated with trade was included, the figures would be notably higher.
U.S. railroads had the lowest train accident rate on record in 2016, according to data from the Federal Railroad Administration (FRA). Derailment rates, which declined 10 percent in 2016 from 2015, as well as track-caused accident rates, are also both all-time lows. The 2016 rail safety statistics continue a string of record-setting years, showing this period has been the safest ever for the rail sector.
Intermodal rates rose 4.9 percent in February 2017 compared to the same month last year, just the fifth year-over-year increase since December 2014 and the largest since January 2012, according to the latest Cass Intermodal Price Index, which measures all-in per-mile costs.
Chief executives at some of the largest U.S. companies are increasingly optimistic about the future of the economy. According to The Business Roundtable’s CEO Economic Outlook Index, as cited by Bloomberg, the optimism among 141 CEOs increased 19.1 points in the first quarter to 93.3-the largest jump since the last three months of 2009. The index, according to Bloomberg, is a measure of the expectations CEOs have for revenue, capital spending, and employment.
American Trucking Associations announced it will be hosting the first annual ATA Economic Summit July 20 in Arlington, Va., for its motor carrier and private fleet members. The Summit will bring together chief economists from several trade associations for an outlook on their respective industries, spanning from manufacturing to construction to retail. Attendees will gain a broad perspective on the state of the economy and forecasts in the supply chain ecosystem that they can use to strategize their budgets and future plans.
In a move that could have profound implications for supply chain efficiency and visibility, IBM and Maersk have used a blockchain to manage cargo documentation for ocean freight shipments. The two companies have announced a “new collaboration to use blockchain technology to help transform the global, cross-border supply chain”. Using IBM’s open source Hyperledger, the two companies will develop a blockchain for the shipping and logistics industries.
A bipartisan bill titled Energizing American Maritime Act was introduced last week to the US Congress requiring up to 30 percent of US liquefied natural gas (LNG) exports to be carried on US-flagged ships.
The global air cargo rally continued into 2017, with traffic rising 6.9 percent year-over-year in January on strong growth in Europe and the Middle East, according to the International Air Transport Association. While this was down from the 10 percent growth in December, it is still well above the average annual growth rate of 3 percent over the past five years, the industry body said.
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