-1.41
FTR’s Trucking Conditions Index for January improved to -1.41 from the December reading of -4.3, indicating “a less challenging financial environment for carriers,” FTR officials said on March 18. “Our forecast for freight volume is modestly stronger, but excess capacity continues to temper our expectations for a market revival,” said FTR Vice President of Trucking Avery Vise. “Absent a triggering event like a surge in fuel prices, for example, we see a continued gradual drain of capacity that will not begin to shift market fundamentals for months.”
2.5 & 3.5
Retail sales will increase this year between 2.5% and 3.5% to between $5.23 trillion and $5.28 trillion, the National Retail Federation (NRF) officials said during the organization’s fourth annual State of Retail & the Consumer on March 20. “The resiliency of consumers continues to power the American economy, and we are confident there will be moderate but steady growth through the end of the year,” NRF President and CEO Matthew Shay said. The 2024 forecast is in line with the 10-year pre-pandemic average annual sales growth of 3.6%, NRF officials said.
4.3
American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index increased 4.3% in February after decreasing 3.2% in January, ATA officials announced on March 19. “After a very soft January, due in part to winter storms, truck tonnage snapped back in February,” said ATA Chief Economist Bob Costello. “February’s level was the highest in a year, yet the index still contracted from a year earlier, suggesting truck freight remains in a recession.”
6
“January did not offer a strong start to 2024 for the automotive market. February, however, has given hope that our late last year prediction for ‘normalcy’ in the year ahead was not completely unfounded. Light vehicle sales were a seasonally adjusted and annualized 15.8 million in February, up 6.0% from January’s 14.9 million and only 1.9% lower than December’s 16.1 million. February 2024 seasonally adjusted light vehicle sales were 6.3% higher than February 2023.” — Association of American Railroads’ Rail Time Indicators, issued March 8
7.3
The shipments component of the Cass Freight Index® rose 7.3% month over month (m/m) in February, “as operations recovered from weather effects and with a Leap Day, which was the main factor behind the 2% m/m increase in seasonally adjusted (SA) terms,” Cass Information Systems Inc. officials said on March 11. On a year-over-year basis, the index declined 4.5%, the smallest decline in 10 months. “While seasonality remains soft in the near term and there are no more extra days on the calendar, underlying volumes have shown improvement,” Cass officials said. “In Q1, the shipments component of the Cass Freight Index is set to rise about 3% from Q4’23 in SA terms.”
16
“The overall Manufacturing PMI® was 47.8% in February, close to the level seen throughout 2023 and down from 49.1% in January. February 2024 marks the 16th month of contraction in a row. The new orders subindex also fell in February, from 52.5% to 49.2%, while the new export orders index and the imports index both rose to their highest levels since July 2022.” — Association of American Railroads’ Rail Time Indicators, issued March 8
20
In February, container volumes at Port Houston’s terminals increased 20% compared with the same 2023 month, totaling 375,965 twenty-foot equivalent units (TEUs), Port Houston officials announced on March 20. In the first two months of 2024, container volumes at Port Houston totaled 708,926 TEUs, an increase of 12% year-to-date. Loaded export volumes continue to be a dominating force among Port Houston’s container terminals, with an increase of 25% in February compared to the same month last year. Additionally, loaded imports increased by 18% this month compared to February 2023’s total, port officials said.
60
“After a more one-sided start to the activist challenge, NSC today thoughtfully responded with the quality appointment of industry operating veteran John Orr and disclosed more detail regarding OR expectations in its definitive proxy materials (targeting 64%-65% OR in 2H24 and more importantly <60% OR in next 3-4 years). We thought NSC could benefit from more operating help, and changes provide a credible alternative to Ancora’s proposal ... For that reason, we think the odds of an activist settlement are now higher, as a near-term compromise.” — Baird Equity Research’s Garrett Holland in a March 20 report titled “Q4 Recap: Baird Flash/NSC/Holland: Responding to Pressure by Strengthening Operating Team, Proxy Filed”
81.95 & 86.75
“... in the middle east Yemen-based Houthi rebels have been ramping up attacks on ships traversing the Red Sea in support of Palestinians in Gaza.” West Texas Intermediate crude oil “traded up $1.32 or 1.64% to close at $81.95. Brent traded up $1.32 or 1.55% to close at $86.75.” — PFL Petroleum Market Daily Report, issued March 25
100+
More than 100 truck stops “have updated their information on Trucker Path to inform women drivers of the availability of safe, accessible facilities,” said American Trucking Associations' Women in Motion and Trucker Path’s Chris Oliver on March 21. Last October, WIM and Trucker Path announced a partnership to help women identify and locate safe and convenient truck stops. Several features were added to Trucker Path’s existing mobile app to identify and locate facilities with specific safety amenities ranked highly by women. “Through our platform, women can quickly and easily identify stops along their routes offering amenities catering to their needs, all while accessing real-time information about parking availability, fuel pricing and discounts and so much more,” Oliver said. “Additionally, they can contribute their comments and reviews that serve as a valuable resource for fellow drivers — both women and men.”
106.7
"The Conference Board’s Index of Consumer Confidence fell to 106.7 in February from a revised 110.9 in January, the first decline after three straight gains. In a press release, Dana Peterson, the Conference Board’s chief economist, said, “’The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the U.S. economy... [Consumers] are now a bit less concerned about food and gas prices, which have eased in recent months. But they are more concerned about the labor market situation and the U.S. political environment.’” — Association of American Railroads’ Rail Time Indicators, issued March 8
1.3 million
Ports of Indiana recently broke ground on a project supported by a U.S. Marine Highway grant that will increase barge shipments of steel coils, port officials said on March 21. The $1.3 million project includes construction of a new 1.2-acre storage area and purchase of a 70,000-pound capacity forklift. Construction is scheduled for completion in mid-May. Ports of Indiana-Jeffersonville was awarded the Marine Highway grant by the U.S. Department of Transportation - Maritime Administration in 2020 to develop a barge shuttle for Nucor Corp. to move steel from Ghent, Ky., to port companies.
65.6 million
On March 25, the Georgia Ports Authority (GPA) board approved $65.6 million in contracts to complete container yard work at the Port of Savannah’s 200-aacre Ocean Terminal. The work is “on track” to be complete by late 2027, said GPA President and CEO Griff Lynch. The board approved three project components, including earth compacting to prepare the site to hold container stacks, removal of a former bridge pier and preliminary utility installation behind the wharf structure. Funded through revenue bonds GPA issued in 2022, the work should be complete by late 2027, said GPA President and CEO Griff Lynch.
1 trillion
Full electrification of the U.S. commercial truck fleet would require nearly $1 trillion in infrastructure investment alone, according to a report from Roland Berger issued March 19 by the Clean Freight Coalition (CFC). The study forecasts a “realistic infrastructure buildout for the electrification of medium- and heavy-duty commercial vehicles” and exposing what the coalition calls “a massive investment gap as state and federal policymakers mandate increased adoption rates of battery-electric commercial vehicles,” said officials at CFC, an alliance of truck transportation stakeholders including a range of motor carriers, truck dealers, truck stop operators and the bus industry.
