Big Truck TV
In this edition we focus on our Market Demand Index and also review items that are impacting the industry this week like load availability, which has decreased by 5%, truck searching, which has also decreased by 5%, and finally fuel prices that have decreased further to $3.71 from $3.76 per gallon.
How is the unstable economy impacting shipping volumes during the current peak season?
The weakening manufacturing problems and slowing retail sales do not present a promising outlook for trucking. Truck availability has almost reached levels seen in 2010-2011which further increases the extent of this reduction in loads per truck. Truck availability is down 6% year-over-year this week, compared to 18% a month ago.
Oil prices have been down since March, can we expect to see a further decline in oil prices?
We can expect to see this trend continue as we are seeing record global production and a disparity in demand. The International Energy Administration reported the world is pumping 91.1 million barrels a day, setting a record, yet in May, global demand was only 89.9 million barrels a day.
The current MDI is not favorable for shippers, so what can they do to fortify themselves in this type of environment?
During this time a shipper must keep a close eye on their budget. They should try to work with their customer, treat them fairly, allow them to make a reasonable return on their risk and their investment, those carriers will stay with you and grow with you. When trucking capacity becomes short, you’ll be well fortified to get your goods to its destination.
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