Capacity

The new “State of Transportation” report issued today by Green Bay, Wis.-based Breakthrough, a provider of fuel and freight solutions for shippers, addressed myriad components of freight transportation and logistics impacting shippers and carriers, including volatile weather, sustainability and emissions reduction, and over-the-road capacity, among others. 

The new edition of the Trucking Conditions Index (TCI), which was recently issued by freight transportation consultancy FTR, saw some signs of improvement but again remaining short of growth.

For December, the most recent month for which data is available, the SCI was essentially flat, coming in at 6.4, edging out November’s 6.3 reading. October had topped October’s 4.3 by 2%, with FTR saying at the time reflected the most favorable market conditions for shippers since June 2023.

The state of the freight economy was a key theme at the SMC3 JumpStart 2024 conference held in Atlanta late last month. Avery Vise, vice president of trucking, for freight transportation consultancy FTR, offered up his views on the freight economy, at the moment, and where things could be headed.

With the global supply chain remaining on high alert amid the series of attacks on the Red Sea shipping lane by the Yemeni Houthi pirates in response to the ongoing Israel-Palestine conflict, a hearing held this week by the House Transportation and Infrastructure Committee, examined the impact of this situation on various aspects of goods movement and the supply chain.

The report’s fourth quarter shipment index value, at 95.0, was down 10.9% compared to the third quarter and down 15.7% annually. On the spend side, the report observed that the fourth quarter reading, at 233.9, fell 13.5% annually and was down 1.4%, from the third quarter to the fourth quarter.

For November, the most recent month for which data is available, the TCI reading, at -1.35, marked an improvement compared to November and October’s respective -6.07 and -8.97 readings.

Logistics Management Group News Editor Jeff Berman recently spoke with Doug Waggoner, CEO of Chicago-based 3PL Echo Global Logistics. Waggoner offered up insights on various logistics and supply chain trends and themes, including: freight economic conditions, near shoring, and brokerages, among others.

For October, the most recent month for which data is available, the TCI reading, at -6.07 saw improvement compared to September’s -8.97. That was preceded by August’s -12.54 reading (its lowest reading going back to November 2022), which was preceded by July’s -5.34 reading and June’s -6.29 reading.

For August, the most recent month for which data is available, the SCI reading, at -2.7, registered a negative reading for the first time since October 2022. This came on the heels of a 1.6 July reading, which was well below June’s 7.9.

The October edition of the ITS Logistics US Port/Rail Ramp Freight Index, which was recently issued by Reno, Nev.-based ITS Logistics, a 3PL focused on drayage and intermodal services, pointed to ports running smoothly and not seeing any major interruptions, coupled with an observation that the trucking market is seeing more capacity leaving the market than entering it.

Many of the concerns from earlier this year have dissipated and shippers are beginning to look for lengthier contracts with stable rates

For July, the most recent month for which data is available, the SCI reading came in at 1.6, well below June’s 7.9.

Truckload was the only segment to see a gain for shipment volumes, up 1.9% sequentially, and down 1.4% annually. LTL was off 2.8% sequentially and 5.8% annually, with intermodal down 2.4% sequentially and 16.4% annually. Other modes were down 0.2% sequentially and 11.5% annually.

With the dust settling from the exit of Yellow Corp. in the less-than-truckload (LTL) market, following its Chapter 11 bankruptcy protection filing earlier this month, various industry stakeholders have taken time since then to assess what Yellow’s departure, as well as its 8%-to-9% sector market share, means for LTL and the freight transportation sector, too.