Tallies, totals and other trend data in the freight transportation realm
2/28/2024
-4.31
FTR’s Trucking Conditions Index for December 2023 fell to a reading of -4.31 from -1.35 in November, reflecting “the least negative overall market conditions” for carriers since May, FTR officials reported on Feb. 16. “We finally see indications that larger carriers are no longer absorbing the bulk of driver capacity displaced by failing small carriers, suggesting a steady tightening of capacity that eventually could spark a turn in the market,” FTR Vice President of Trucking Avery Vise said. “If the recent upturn in diesel prices continues, the capacity drain among small carriers might accelerate. Even so, the industry will need stronger freight demand, and we still don’t see any significant inflection in volume until at least the second half of this year.”
3.5
American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index decreased 3.5% in January after increasing 1.2% in December, ATA announced on Feb. 20. In January, the index equaled 111.0 (2015=100) compared with 115.0 in December. “January’s data was a snap back to reality for anyone thinking the freight market was about to turn the corner,” said ATA Chief Economist Bob Costello. “Bad winter weather in January likely hurt volumes, not to mention sharp drops in a number of drivers of tonnage including retail sales, housing starts and manufacturing output.”
3.5
In January, the shipments component of the Cass Freight Index® fell 3.5% month over month, but it was consistent with December in seasonally adjusted terms, Cass Information Systems Inc. officials said on Feb. 15. “Freight transportation is, of course, an outdoor sport, and it’s tough to say with precision if this January was worse than most, but if so, the underlying trend in freight improved in January,” they said. Year over year, the index declined 7.6% after a 7.2% year-over-year decline in December. “It’s been over two years since the first year-over-year decline of this freight recession, and with destocking playing out and goods consumption rising, the downturn is likely nearing its end,” Cass officials said.”
6
Ports of Indiana shipped 12.6 million tons of cargo in 2023, the second-highest tonnage in its 63-year history, ports officials announced on Feb. 26. The tonnage total represented a 6% increase compared with 2022’s total. The largest single cargo increase? Coal exports from Mount Vernon, which jumped 78%. Fertilizer increased more than 11%, while soy products, minerals, ethanol, DDGs and cement also increased, ports officials said. Ports of Indiana also experienced “significant growth” in rail shipments during 2023, with rail carloads increasing 28% year over year. Overall, Ports of Indiana handled 65,141 rail cars in 2023.
8.2 & 9.3
At the Port of Oakland, full imports increased 8.2% in January, with the Seaport handling 72,081 TEUs for the month, compared with 66,637 TEUs in the same 2023 period, port officials announced on Feb. 26. Full exports increased of 9.3%, with 62,596 TEUs transiting the Seaport in January, compared with 57,279 TEUs in January 2023. “Imports benefitted from strong consumer demand, as well as the normal seasonal uptick each January prior to factories in Asia closing for the Lunar New Year,” said Port of Oakland Maritime Director Bryan Brandes. “The increase in export volume can be partially attributed to consumer demand in Asia remaining high for U.S. agricultural exports.”
19
“U.S. West Coast share loss to the East Coast should reverse in 2024 given Red Sea (sustained rebel attacks, situation remains fluid) and Panama Canal (draft restrictions due to drought) disruptions, along with the upcoming September 2024 East Coast port labor contract expiration date. Early evidence of improving West Coast imports can be seen in the Port of L.A.'s January volumes (+19% Y/Y), which marked the second-best start to a year on record, representing a welcomed industry volume tailwind as the sector looks to definitively exit this freight recession.” — Baird Equity Research’s Garrett Holland in a Feb. 26 report titled “West Coast Port Flow Normalization: Longer-Term Volume Opportunity”
29.2
“U.S. rail carload traffic for 2023 was 11,701,875, up 0.7%, the most for a full year since 2019. Carloads were up in 10 of the 20 AAR categories led by motor vehicles and parts, petroleum products, and crushed stone and sand. Intermodal at 12,667,354 units (containers and trailers) was down 4.9% for 2023 but up 5.5% in the fourth quarter over the fourth quarter of 2022, its biggest quarterly percentage gain since the second quarter of 2021. Coal remains the largest U.S. rail carload commodity accounting for 29.2% of total originated carloads.” — Feb. 15 newsletter from RESIDCO titled “New Equipment Quality Control Issue, Bolsters Demand for Midlife Aircraft.” RESIDCO is a transportation equipment lessor and asset management company that operates and manages a freight-car and locomotive fleet.
34
In January, U.S. net trailer orders fell 34% from December 2023’s level to 15,518 units, 38% below January 2023’s total, FTR reported on Feb. 20. Total trailer orders in January were 23% below the 2023 average. Trailer production eased by 2% in January to 19,680 units. Production was down 22% year-over-year. This build number was the lowest since January 2023 and marks the fifth consecutive month of decline since August 2023, FTR officials said.
51.7
On Feb. 22, the Equipment Leasing & Finance Foundation released the February 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI): Confidence in the equipment finance market was 51.7, an increase from the January index of 48. “We believe there is a 50/50 chance of a recession this year, which will likely result in lower capex spending on equipment, at least in the first half or until interest rates decline,” said Jeffry Elliott, president of Huntington Equipment Finance and an MCI-EFI survey respondent. “However, following the significant delay in equipment acquisitions last year, we still expect considerable activity this year, as equipment wears out and replacement can be delayed only so long.”
52.5
“The Manufacturing PMI®, from the Institute for Supply Management (ISM®), is created by surveying manufacturers throughout the country and gauges the direction of U.S. manufacturing. A reading above 50% means expansion for manufacturing; below 50% means manufacturing is contracting. … A reading below 50% doesn’t always mean a recession, but if there’s a recession, you can expect the index to be below 50%. The overall Manufacturing PMI® was 49.1% in January, up from 47.1% in December, marking the 15th month of contraction in a row. The new orders subindex, however, was 52.5%, up 5.5 percentage points from 47.0% in December. This reading is the highest it’s been since April 2022 and the first month of expansion for new orders since August 2022.” — the Feb. 9 edition of the Association of American Railroads’ Rail Time Indicators
57
“Despite lower expectations, roughly 57% of transportation and logistics companies under coverage missed EPS estimates in Q4 (vs. 56% in Q323), given largely non-existent peak-season demand and sustained cost pressure.” — Baird Equity Research’s Garrett Holland in a Feb. 16 report titled “Q4 Recap: Cycle Wearing Unevenly, Select Opportunities Remain”
114.8
“The Conference Board’s Index of Consumer Confidence rose to 114.8 in January from 108.0 in December. It’s the highest it’s been since December 2021 and the third consecutive increase.” — the Feb. 9 edition of the Association of American Railroads’ Rail Time Indicators
320
On Feb. 12, Florida’s Port Canaveral welcomed a second mobile harbor crane. The 320-foot Liebherr LHM 600 evo mobile harbor crane joins the Liebherr LHM 600 evo 5, which was placed into service in January 2019. “We have a commitment to support the state’s growing supply chain demands efficiently and effectively,” said Capt. John Murray, Port Canaveral CEO. “Investing in state-of-the-art equipment like this bolsters our ability to handle a broad spectrum of cargo and increases our capacity to manage heavy lift operations like space components.”
6,000+
"Last year, CSX underscored its commitment to public safety with a comprehensive first responder training program, reaching over 6,000 individuals across its rail network. The program included 60 sessions covering hazardous materials handling and incident response tactics, ensuring preparedness for emergencies. Specialized events, like Responder Incident Training sessions, benefited 856 responders, providing advanced safety training. The CSX Police Department played a crucial role by offering specialized training to 1,549 first responders." — Association of American Railroads' The Signal, issued Feb. 14