TransCore Canadian Freight Index Hits Record High in January

JOC Staff | Feb 20, 2013 5:24PM EST

TransCore’s Link Logistics Canadian Freight Index showed load volumes in January increased 25 percent from December 2012 and 4 percent from January 2012, surpassing the record set for the month in January 2011 by 3 percent.

Intra-Canada loads represented 24 percent of the total load volumes, and cross-border postings represented 71 percent of the overall load postings.

Equipment postings also started the year with positive increases. January’s postings rose 17 percent from December 2012 and 13 percent year-over-year.  

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TransCore DAT Freight Index Retreats

JOC Staff | Mar 26, 2013 9:46AM EDT

The TransCore DAT North American Freight Index fell in February, returning it to post-recession levels after an “unusually robust” January.

TransCore North American Freight Index

Freight availability fell 2.5 percent year-over-year in February, the first drop since October 2012. The index also dropped 14.3 percent from January’s level. Despite this decline, freight volume for the first two months of 2013 is still over 17 percent higher than in the same period in 2012 thanks to January’s irregular jump.

On a month-to-month basis, the volume of two of the three major equipment types also fell. Van loads dropped 11 percent, and reefer freight volume slid 15 percent. Flatbed freight availability remained flat. Compared with February 2012, freight volume rose 7.6 percent for vans and 7.2 percent for reefers, while flatbed volume fell 11 percent, which is normal for this time of year.

The U.S. average spot market line haul rate for dry vans rose almost 1 percent or 1 cent in February over the month before. The rate was up 1.6 percent year-over-year. The load-to truck ratio has dropped one-tenth of a point or 6 percent since January; it was down 2.3 percent compared to February 2012.

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JOC Truckload Capacity Index Hits New Low

William B. Cassidy, Senior Editor | Feb 22, 2013 8:06AM EST

The quarterly Journal of Commerce Truckload Capacity Index fell 1.3 percentage points to a preliminary reading of 82.4 in the fourth quarter of 2012.

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FTR Trucking Index Reflects Improved Freight Growth

JOC Staff | Mar 14, 2013 1:50PM EDT

FTR’s Trucking Conditions Index for January, published in its March 2013 Trucking Update, jumped 2.2 points from the previous month to a new reading of 10.6, reflecting improved freight growth and the expectation for tighter capacity.

The TCI is expected to continue at a high level as regulations affecting trucking utilization go into effect in mid-2013. Conditions through 2014 will remain in the “strongly positive territory,” as companies’ ability to raise rates in a tight capacity environment is likely, the Nashville, Ind.-based company said.

“While the sequester is now in effect, we have seen enough indications of an improving economy to expect a growing freight market in 2013,” said Jonathan Starks, director of transportation analysis for FTR, in a written statement. “As regulators impose the changes to hours-of-service rules in July, capacity will further tighten to levels not seen since 2004.”

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Trucking Tonnage Index Edged Up in February

JOC Staff | Mar 20, 2013 4:17PM EDT

The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index increased 0.6 percent to 123.6 in February, after increasing 1 percent in January to 123.

February was the fourth month in a row showing an increase in tonnage. Over the last four months, tonnage cumulatively increased 7.7 percent.

Compared with February 2012, the seasonally adjusted index was up 4.2 percent, just below January’s 4.6 percent year-over-year gain. Year-to-date, compared to the same period in 2012, the tonnage index is up 4.4 percent.

“Fitting with several other key economic indicators, truck tonnage is up earlier than we anticipated this year,” said Bob Costello, ATA’s chief economist, in a written statement. “While I think this is a good sign for the industry and the economy, I’m still concerned that freight tonnage will slow in the months ahead as the federal government sequester continues and households finish spending their tax returns. A little longer term, I think the economy and the industry are poised for a more robust recovery.”

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Index Reflects Worsening Conditions for Shippers

JOC Staff | Mar 21, 2013 2:17PM EDT

FTR Associates’ Shippers Conditions Index for January fell an additional two points from December 2012 to a reading of negative 7.1, reflecting deteriorating conditions for shippers in early 2013.

The SCI is forecast to continue a downward trend as the year progresses, reaching negative double-digit levels by the end of the year. This indicates “very difficult conditions” for shippers, as transport costs will increase, according to the report.

“Our forecast for deteriorating conditions for shippers is based primarily on two assumptions: that the economy will continue to grow slowly and that there will be no further delay in the implementation of the revised hours-of-service rules in July of this year,” said Lawrence Gross, senior consultant for FTR, in a written statement.

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Cass Freight Index

Cass index data is derived from actual freight invoices paid on behalf of 350 clients, which totaled over US$20 billion in 2011 and include a wide diversity of shippers, commodities and company size.

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Producer Price Index Rises 1.1%

Prices paid to U.S. producers rose 1.1% in September, reflecting an increase in fuel costs, the Labor Department said Thursday.

The producer price index increase followed a 1.7% upturn in August. The so-called core PPI, which excludes food and energy, was unchanged the first time it didn’t increase since October 2011, Labor said.

Economists had forecast a 0.8% increase in the PPI, and a core rate increase of 0.2%, Bloomberg reported.

An increase in the PPI could indicate strong demand for goods, which would mean more shipments for trucking companies. However, if inflation begins to accelerate too quickly, it also could hurt the economy.

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ISM Manufacturing Index Improves in September

U.S. manufacturing activity rose in September from to a three-year low, showing expansion for the month, the Institute for Supply Management said Monday.

ISM’s monthly manufacturing index reading rose to a reading of 51.5, from 49.6 in August, the group said.

Figures lower than 50 indicate contraction, while figures higher than 50 show expansion.

Economists had forecast the index would rise to a reading of 49.7, Bloomberg reported.

Eleven of 18 manufacturing industries showed expansion, and the new orders index jumped 5.2 points to a 52.3 reading.

The employment index rose 3.1 points to 54.7, while production gained 2.3 points to 49.5, ISM said.

ISM’s factory index measures manufacturing components of the economy.

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DOT Freight Transportation Index Falls 0.9%

The Department of Transportation’s freight transportation services index fell 0.9% in August from the same month last year, DOT said Thursday.

The freight TSI fell 0.6% to a reading of 109.0 from July, DOT said. The index uses a baseline 100 reading from the year 2000.

August shipments were 4.4% below the all-time high level of 114.0 in December 2011.

The freight TSI is a seasonally adjusted monthly index measuring the output of services provided by the for-hire transportation industries, including railroad, air, truck, inland waterways, pipeline and local transit.

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ISM Services Index Improves in September

An index of the U.S. economy’s service sector improved in September, the Institute for Supply Management said Wednesday.

ISM’s monthly services index rose to a reading of 55.1, from 53.7 in August. Figures greater than 50 indicate expansion.

Economists had predicted the index would drop to 53.4, Bloomberg reported.

The index averaged 56.1 in the five years prior to the recession that began with December 2007.

ISM’s services index measures nonmanufacturing components of the economy and the services sector — which includes transportation, retail sales and financial services and accounts for nearly two-thirds of the U.S. gross domestic product.

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ISM Manufacturing Index Contracts for Second Month

U.S. manufacturing activity improved slightly in July but showed contraction for a second straight month, the Institute for Supply Management said Wednesday.

ISM’s monthly service index reading was 49.8, up from 49.7 in June. Figures lower than 50 indicate contraction.

June’s contraction had been the first since July 2009.

Economists had forecast the index would rise to 50.2, Bloomberg reported.

New orders registered a 48 reading up 0.2% from June. Both the production ad employment indexes remained in growth territory, registering 51.3 and 52 readings, respectively, ISM said.

ISM’s factory index measures manufacturing components of the economy.

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ISM Services Index Declines

An index of the U.S. economy’s service sector declined in June to the slowest pace in almost a year and a half, the Institute for Supply Management said Thursday.

ISM’s monthly services index rose to a reading of 52.1, from 53.7, in May. Figures greater than 50 indicate expansion.

Economists had forecast the index would slip to 53, Bloomberg reported.

The index averaged 56.1 in the five years prior to the recession that began December 2007.

ISM’s services index measures non-manufacturing components of the economy, and the services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.

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ISM Manufacturing Index Rises to Five-Month High

U.S. manufacturing activity jumped in November, showing continued expansion for a 28th consecutive month, the Institute for Supply Management said Thursday.

ISM’s monthly factory index climbed to a reading of 52.7, a five-month high, from 50.8 in October, the group said in its monthly report. Figures over 50 indicate expansion.

The reading surpassed economists’ projections of a rise to 51.8, Bloomberg reported.

New orders rose 4.3% to 56.7%, the second straight month of growth after three months of contraction.

The prices index rose 4% to 45% and the prices of raw materials fell for a second consecutive month.

ISM’s factory index measures manufacturing components of the economy.

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Consumer Price Index Declines

The consumer price index declined 0.1% in October, the first decrease in four months, the Labor Department said Wednesday.

Economists had projected no change in the government’s main inflation gauge, Bloomberg reported.

The core CPI rate excluding food and energy rose 0.1%, matching September as the smallest increase this year, Bloomberg said.

Almost 60% of the CPI covers prices consumers pay for services. If consumer prices are climbing, it could reflect an increase in demand for consumer goods, which increases the demand for trucking services.

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Cass Freight Index Improves in October

ThinkStock.comOctober freight volumes grew modestly but revenue rose strongly, according to the latest freight index report from Cass Information Systems.

The monthly Cass freight index said October shipment levels grew 2.2% over the same month last year, while shipper expenditures jumped 16.1%.

The index covers all modes of freight transportation.

Although both parts of the index grew year-over-year, they also contracted sequentially from September, although Cass said that is a typical seasonal pattern.

“The numbers appear to show that efforts by carriers to push up rates and recover increases in operating costs appear to be sticking,” the report said.

“The result is that while the weight of a shipment, averaged across all modes, has risen about 1%, year-over-year, the cost of transporting that average shipment has escalated dramatically.”

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ISM Services Index Shows Continued Expansion

An index of the U.S. economy’s service sector declined slightly in October but still showed expansion, the Institute for Supply Management said Thursday.

ISM’s monthly services index was little changed at 52.9, after a reading of 53 in September, ISM said in its monthly report. Figures greater than 50 indicate expansion.

Economists had forecast the index would rise to 53.5, Bloomberg reported.

The index averaged 56.1 in the five years prior to the recession that began December 2007.

ISM’s services index measures non-manufacturing components of the economy, and the services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.

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Chicago Manufacturing Index Declines

Manufacturing activity in the Chicago area declined in October, the Institute for Supply Management-Chicago said Monday.

The group’s business barometer slipped to a reading of 58.4 this month, from 60.4 in September. Readings over 50 signal expansion.

Economists had forecast the gauge would drop to 59, Bloomberg reported.

Chicago is a major center of U.S. manufacturing, which is one of trucking’s largest and most important customers.

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Consumer Price Index Rises

The consumer price index rose 0.3% in September, the slowest pace in three months, the Labor Department said Wednesday.

The upturn in the government’s main inflation gauge matched economists’ projections, Bloomberg reported.

The core CPI rate excluding food and energy rose 0.1%, less than the 0.2% gain projected by economists, Bloomberg said.

Almost 60% of the CPI covers prices consumers pay for services. If consumer prices are climbing, it could reflect an increase in demand for consumer goods, which increases the demand for trucking services.

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N.Y. Manufacturing Index Contracts for Fifth Month

Manufacturing activity in the New York region contracted in October for a fifth straight month, the Federal Reserve Bank of New York said Monday.

The regional Fed’s “Empire State Index,” generally the first economic indicator in a given month, improved to a reading of negative 8.5, from minus 8.8 in September.

Readings above zero indicate expansion, while below that show contraction.

Economists had projected that the index would improve to minus 4, Bloomberg reported.

The Empire State index also covers northern New Jersey and Southern Connecticut. Manufacturing is one of trucking’s largest and most important customers.

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