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

The value of exports from America’s Foreign-Trade Zones increased by 13.7 percent in 2013, to a record-high 79.5 billion in merchandise exported, according to figures released by the U.S. Foreign-Trade Zones Board in its Annual Report to Congress.

While summer may be nearing its end, the climate in the manufacturing sector remains very warm, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management.

When publicly-traded Class I freight railroad and intermodal service providers issued second quarter earnings results earlier this summer, the topic of less than ideal service on the rails was a common theme within the earnings releases and question and answer sessions with top management at those companies.

Supply chain security provider Freightwatch International has released its semi-annual report on cargo theft in the Asia Pacific region for the first half of 2014, which contains some heartening news for U.S. shippers reliant on trucking, warehousing and retail.

FedEx Ground, a subsidiary of FedEx Corporation, reports today that a decision by a three-judge panel of the United States Court of Appeals for the Ninth Circuit reversed previous rulings by the District Court for the Northern District of Indiana in three class action cases involving mostly former independent contractors for FedEx Ground

Article Topics

Blogs · Trucking · Ocean · 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.