Subscribe to our free, weekly email newsletter!

Durable goods orders drop 3.6 percent in April, according to Department of Commerce

By Jeff Berman, Group News Editor
May 25, 2011

With freight volumes moderating in recent weeks and demand seeing a mild decline, the United States Department of Commerce reported today that new orders for manufactured durable goods in April dipped 3.6 percent—or $7.1 billion—to $189.9 billion.

This marks the second time in the last three months that new orders have been down. March was up 4.4 percent.

April shipments of manufactured goods fell for the first time in five months, decreasing 1.0 percent—or $2.0 billion—to $194.9 million, according to Commerce. This followed a 3.1 percent gain in March.

The decreases in orders and shipments are consistent with what is happening with current freight trends to a large degree. Industry analysts point out that there was a downturn in freight demand from March to April even though overall freight levels are still showing growth.

And as LM has reported, a good amount of this growth stems from a very strong manufacturing sector, which has shown expansion for 23 straight months, according to the Institute for Supply Management.

“We are seeing steady growth for the most part,” a metals shipper said in an interview. “It is not great compared to what we have seen in the past, but it is clear that demand for goods is intact.”

This sentiment is being highlighted in recent earnings reports and advisories from myriad logistics and freight transportation service providers, too. These providers have been cautious about adding capacity until they see more consistent and steady signs of demand over a prolonged period.

Should oil and diesel prices continue to inch down, as has been the trend in recent weeks, it could serve as a driver for increased demand and orders.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Kurt Nagle, president and CEO of the American Association of Port Authorities recently voiced his endorsement of this trade legislation

While many auto executives expect more industry recalls in 2015 and 2016, just 8 percent use advanced predictive analytics to help prevent, prepare for, and manage recalls, according to a recent online poll from Deloitte.

Purolator white paper highlights common Canadian shipping mistakes. From failing to appreciate the complexity of the customs clearance process to not realizing that Canada recognizes both French and English as its official languages, U.S. businesses frequently misjudge the complexity of shipping to the Canadian market. This often results in mistakes - mistakes that can come with hefty penalties and border clearance delays, and that can result in lingering negative perceptions among Canadian consumers.

At a certain point, it seems like the ongoing truck driver shortage cannot get any worse, right? Well, think again, because of myriad reasons we could well be in the very early innings of a game that is, and continues, to be hard to watch. That was made clear in a report issued by the American Trucking Associations (ATA), entitled “Truck Driver Analysis 2015.”

Coming off of 2014, which in many ways is viewed as a banner year for freight, it appears that some tailwinds have firmly kicked in, as 2015 enters its official homestretch, according to Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics (SOL) Report at last week’s CSCMP Annual Conference in San Diego. The SOL report is sponsored by Penske Logistics.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA