0
“State policies requiring California’s port supply chain to transition to zero-emission technologies by 2035 need to address challenges relating to providing an adequate energy grid supply coupled with resiliency to avoid significant impacts on the ability of California’s supply chain to move cargo.” — Pacific Merchant Shipping Association on June 9, citing a report from engineering consultants Moffat and Nichol examining the energy grid requirements for vessels and the landside equipment that move cargo between the vessel and inland destinations.
5
“Diminishing attractiveness of a career at sea, coupled with rising man-berth ratios and continued fleet growth, will lead to the highest shortfall of officers to crew the world’s merchant fleet in over a decade by 2026, with important implications for both hiring and future manning cost inflation,” according to a Manning Annual Review and Forecast report published June 2 by global shipping consultancy Drewry. By 2026, they expect the supply/demand gap “to widen to a deficit equating to over 5% of the global officer pool” — the highest level since 2013. “With the ongoing negative effects of life at sea brought about by the COVID-19 pandemic, some seafarers may bring retirement plans forward, while others may look for work ashore,” said Rhett Harris, Drewry’s head of manning research. “It has been the case for a number of years that quality officers have been difficult to recruit and retain. This situation is expected to get worse as the growth in supply fails to keep pace with an expanding world fleet.”
16.82
FTR’s Trucking Conditions Index for April reached a record-high reading of 16.82, surpassing what had been an all-time high in March, FTR reported on June 9. FTR officials expect “solid freight demand coupled with high-capacity utilization and robust freight rates” to keep the index “quite strong in the near term and at least in positive single digits well into 2022 and perhaps beyond,” they said. But they’ve seen no signs the driver capacity “situation” is improving. “Over the next few months, one potential constraint — generous unemployment benefits — will end,” said FTR Vice President of Trucking Avery Vise. “While those benefits likely contribute to the hiring challenge, we are skeptical that their demise will fundamentally change the dynamic. Given robust competition for labor — job openings in the economy are at an all-time high — trucking’s capacity challenge could linger longer than usual.”
35.3
In May, the shipments component of the Cass Freight Index® grew at a record 35.3% year-over-year pace, rising from a 27.6% year-over-year increase in April, Cass Information Systems Inc. reported on June 11. “It’s safe to say the pandemic recovery is progressing much faster than the recovery from the Great Recession,” Cass Information Systems officials said, adding that a strong year-over-year result was expected, given the easy comps, but “the acceleration was ahead of expectations against a similar comp to April.”
42
In May, net trailer orders “sank” to 9,500 units, 42% below April, FTR reported on June 15. Year-over-year comparisons were up 112% compared with COVID-impacted 2020 order activity. Van orders were “very soft,” but vocational trailers remained “sturdy as the industrial sector of the economy picks up steam,” FTR officials said. “The market is in a strange place right now in that the bucket for 2021 orders is almost full, but the bucket in 2022 is essentially empty,” said Don Ake, FTR vice president of commercial vehicles. “We expect abnormally low activity until the 2022 order boards are opened. At that point, orders should shoot back up to near-record levels.”
45.92
“Consistent with the past few years, Outbound Tender Volumes dipped during the Memorial Day holiday and then quickly rebounded afterward. Compared to the Outbound Tender Volume Index levels during this time in the previous two years, [the current index] is 45.92% higher than 2020 and 57.25% higher than 2019.” — Schneider National Inc.’s Shipping and Transportation Market update report, issued June 11.
95
"Did you know 95% of rail-related deaths involve drivers going through grade crossings or a person on the tracks? With safe driver and pedestrian behavior, most of these are preventable. From spending hundreds of millions of dollars each year to maintain crossings and implement new technologies to partnering with Operation Lifesaver Inc. on public awareness campaigns," railroads are working to "stop track tragedies." — Association of American Railroads' The Signal, issued June 8, two days before International Level Crossing Awareness Day.
97
In a recent survey of National Retail Federation (NRF) member companies on “the congestion situation,” more than 97 percent of retailers surveyed said they’ve been “impacted by port and shipping delays.” — June 14 letter from NRF to the White House seeking a meeting with President Biden and other administration officials regarding “the challenges retailers are facing from continued supply chain disruptions that are leading to congestion at U.S. ports”
4 billion
On June 11, Worldwide Express LLC and GlobalTranz Enterprises LLC announced they plan to merge. The transaction is “sponsored” by a consortium led by CVC Capital Partners as well as GlobalTranz’s current lead investors, Providence Equity Partners and PSG, according to the would-be 3PL partners’ jointly issued statement. Current Worldwide Express lead investor Ridgemont Equity Partners, along with Worldwide Express and GlobalTranz management, would retain a “significant stake” in the combined $4 billion entity, which would have “market-leading” offerings in parcel, less-than-truckload, full truckload and managed transportation delivered through proprietary technology, the merger partners said. The transaction is expected to close during the third quarter.
