Recovery may not be what it seems

There is still much uncertainty and fear regarding the economic future.
By Rosalyn Wilson, SCMR Blogger
July 27, 2010 - SCMR Editorial

Tonnage and carloads carried continues to rise on the strength of the holiday surge. Retailers have banked on returning consumer confidence and spending and orders are up. West coast imports are up and intermodal rail shipments are mirroring the rise and will probably have the best numbers since 2006. Rates for ocean and air are skyrocketing and rates are beginning to inch up in rail and truck.  Trucking bankruptcies in 2010 have right-sized the industry more in line with demand…for now.

Yet on the horizon I hear rumblings of capacity shortages – trucking companies turning down loads because they can’t handle them, shippers unable to find carriers to fit their immediate shipping schedules. The truck driver shortage, especially for experienced drivers, is showing up in all sectors now. The signs in the transportation sector seem to be trending in the right direction, but growth is slow and volatile.  There is still much uncertainty and fear regarding the economic future. Businesses are reluctant to invest or hire new workers and consumers have not shown that they are ready to return to earlier spending patterns.



About the Author

image
Rosalyn Wilson
SCMR Blogger
Rosalyn Wilson is the author of the highly regarded “State of Logistics Report,” which is produced annually by the Council of Supply Chain Management Professionals (CSCMP) and sponsored by Penske Logistics. Rosalyn has over thirty years experience researching and writing about the supply chain industry. She is a Senior Business Analyst at Delcan Corporation, a multi-disciplinary engineering, management, and technology consulting firm. She can be reached directly at .(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

For the month of April, Cass and Avondale found that truckload rates in April, which measures truckload linehaul rates paid during the month, were up 3.8 percent annually, while intermodal dropped 1.9 percent annually during the same period.

Following the Pacific Maritime Association (PMA) signing off on ratifying a new five-year contract with the International Longshore & Warehouse Union (ILWU) on May 20, the ILWU followed suite on May 22, saying that 82 percent of its longshore worker members voted to ratify the tentative contract agreement between the parties that was reached on February 22.

Straying from its typical seasonal trajectory, United States-bound waterborne shipments dipped from March to April, according to data recently issued by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

One theme tied together all of the presentations, regardless of the topic: The importance of data.

U.S. carloads were down 10 percent annually at 269,092, and intermodal volume saw a 4.9 percent annual gain to 280,107 containers and trailers.

Article Topics

Blogs · Ocean · Trucking · Transportation · Shipping · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

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