Subscribe to our free, weekly email newsletter!



No shaking the second half swoon

By Jeff Berman, Group News Editor
July 02, 2012

For the past three years, we have seen our hopes rise when it comes to the economic recovery….in the first half of the year anyhow.

But that seems to change when the second half comes, and this year may be no exception.

What was the reason behind sluggish transportation volumes in the second half of 2010, following such a strong first half of that year, which was largely fueled by a significant inventory re-build? Or last year, when things were seemingly getting better through mid-year, but then segued into the current state we are in today (and really have been for a while now): one which is hard to define, replete with stops and starts, false signs of optimism, and other hard-to-gauge indicators, which only add to the confusion.

One constant we have seen during this bumpy ride was the strong output being seen on the manufacturing front, especially on a domestic basis, for more than 3 years. But that may be in peril now, too, given that today’s manufacturing report from the Institute of Supply Management showed a contraction from May to June.

One month does not make a trend, but it another thing that needs to be watched and monitored in the coming quarters to be certain.

Let’s hope the downward trend in this report is not lasting, as there is clearly already enough to be concerned about these days, whether it be jobs, housing, sluggish retail sales, and GDP growth, and, of course, what is happening in Europe these days, which is quickly turning from scary to flat out frightening, really.

Yes, there are things to be concerned about, but there is also a healthy amount of optimism in the air, too. Consumer confidence has been fairly strong, with gas prices dropping almost weekly, which lends to more, um, consumer confidence. And freight transportation and supply chain stakeholder have said that business conditions “feel” better than a year ago at this time, even if the numbers don’t always bear this out.

While we are still figuring out what to make of the economy and subsequently the facets of it that have a direct effect of supply chain management and logistics, it remains true that while things could certainly be better, they could also be worse and have been. If you question that, feel free, but also consider just how bad things were in 2009 before doing so. 

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

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 8.2 percent from September 2013 to September 2014 at $102.2 billion.

NS said that the D&H lines it plans to acquire connect with the NS network at Sunbury, Pa. and Binghamton, N.Y. and give NS single-line routes from Chicago and the southeast U.S. to Albany, N.Y., which is in close proximity to NS’ Mechanicville, N.Y.-based intermodal terminal.

This follows a 1.6 cent decrease last week, which was preceded by a 5.4 gain the week before and stands as the first increase going back to the week of June 23, when the weekly average headed up 3.7 cents to $3.919 per gallon.

BNSF said that its 2015 capital expenditures will be allocated towards various areas of its business, including maintenance and expansion of the railroad to meet the expected demand for freight rail service, with 2015 representing the third straight year BNSF has invested a record annual capital expenditures investment.

While the ongoing labor negotiations between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) ostensibly going from bad to worse, following the ILWU’s announcement late last week that it was halting negotiations from November 20 through November 30, a Congressional group last week penned a letter to PMA and ILWU leadership expressing concern over the state of the negotiations.

Article Topics

Blogs · Economy · All topics

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA