Big Truck TV
With the US unemployment rate dropping to its lowest level in almost four years, the consumer sentiment increased to its highest level in five years showing signs that people are more positive about the economy. On the flip side, available loads for this week decreased by 8%. This drop had a direct effect on the MDI, which decreased by 11%. In this week’s highlight interview, we talk to Dan Pallme, Director of the Intermodal Freight Transportation Institute at the University of Memphis about the business of intermodal services.
What has caused the MDI to decrease so dramatically?
The decrease in load postings by 8%, largely contributed to the 11% decline in MDI. Compared to previous years, load postings usually increase in the first week in October, but because of the notable decrease in load postings during this time, it makes things particularly more worrisome.
What has contributed to the sudden increase in Consumer Sentiment?
Consumers are feeling good because US unemployment rate decreased to its lowest levels in close to four years in September, which largely contributed to the highest level of Consumer Sentiment since 2007. With more people going back to work, the number surpassed its predictions.
Why is the landscape of the trucking industry changing?
Intermodal services are growing rapidly. Companies can capitalize on greater profits by using intermodal for longer hauls. Tiger grants are given to develop railroad infrastructure to stimulate the economy. With issues such as driver retention currently sitting at 106% for long haul whereas LTL is at 9%, intermodal makes a lot of sense. Trips within a 48 hour range however, OTR is still the preferred mode of transportation. Where intermodal makes sense is reducing congestion, cost effective when it comes to fuel costs and it helps to alleviate capacity issues.
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