April showers bring May flowers... and produce?
Axle
Logistics
Key Trends
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Cargo ship crashes into Baltimore bridge
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Spot rates continue to show signs of strength
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Projected loadings continue to show strength
Monthly
News
Cargo ship Dali crashes into the Francis Scott Key Bridge in Baltimore
Early the morning of March 28th the cargo ship Dali lost power and propulsion causing it to drift into supports for the Francis Scott Key Bridge in Baltimore. The ship, which standing upright is nearly as tall as the Eiffel Tower in Paris, was carrying roughly 4,700 containers at the time of the crash. The bridge collapsed completely. Crews are working hard to clean up the wreckage and to reopen the port as soon as possible but disruptions are to be expected. Officials hope to resume normal operations at the Port of Baltimore by the end of May 2024. In the meantime, typical demand patterns will be disrupted as cargo is rerouted through alternative ports along the east coast of the US. There is currently no timetable set for the reconstruction of the Francis Scott Key Bridge.
Market
Trends
Supply Update
According to FTR’s analysis of the FMCSA data, Net revocations of trucking authority – total revocations minus reinstatements of authority – totaled 5,296 in February, down about 2,300 from January. Meanwhile, February saw the largest number of new trucking authorities issued since October 2023 (4,497). The net decrease in overall carrier population (799) represents the smallest drop in the carrier base since June 2023. FTR’s Active Truck Utilization, the share of seated trucks actively engaged in freight hauling, is unchanged from the prior outlook.
Demand Update
Total truck loadings saw another increase in y/y projections, up 0.8% from a previous forecast of up 0.7%. Strong growth of food and packaged goods coupled with a less negative outlook for automotive are the principal factors driving Dry Van numbers
Stronger produce shipments are causing a stronger forecast for refrigerated loadings. The temp-controlled food group pushed the FTR loadings forecast up to a 2.7% y/y increase vs the previous projection of 2.4%.
Market
Trends
Rate Update
A weaker recovery in spot rates and a less negative move in contract rates resulted in a little overall change in the overall truckload rates forecast according to FTR.
Dry van spot rates have seen multiple weeks of w/w increases according to DAT Trendlines (pictured to the right). The overall forecast seems to indicate continued slow growth in spot rates through the rest of the year.
Market
Forecast
Economic indicators improved slightly in February following January’s discouraging numbers which were negatively impacted by winter weather. However, after increases in both the new orders and production components of the Institute for Supply Management’s manufacturing index last month, both have now fallen back into contraction territory. The new orders component fell to 48.4% (-3.3 points) while the production component fell to 49.2% (-2.0 points). Housing starts on the other hand jumped 10.7% m/m and sales of single-family homes jumped 10.3%. Overall industry forecasts remain relatively unchanged.
Speak to your Axle Logistics Consultant to understand how the market is impacting your specific industry and business!
The Axle
Advantage
Our Team
Our team knows how to work hard and play hard! Here’s a glimpse of our fun and memorable Q1 Department Outings. Department Outings are a fantastic opportunity for team bonding and relaxation outside the office. We enjoyed an evening of bowling and great conversations, strengthening our connections and renewing our energy for the work ahead. Cheers to creating amazing memories together!
#AxleGivesBack
Our March Community Spotlight was Survivor Fitness!
Survivor Fitness is a nonprofit that helps cancer survivors find hope and healing after treatment. One of their instructors came by HQ and led two yoga classes for our team! We are so thankful for this special opportunity to learn more about all the work Survivor Fitness does to help cancer survivors gain back their strength.
Did you know...
According to the April FTR Trucking Update, nearly 3,000 Brokers have had their Broker Authority revoked since the beginning of 2023. Make sure to talk to your Logistics Consultant about the change in landscape and how you may be impacted!
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Contact
If you have questions about current market conditions or would like more information, connect with our team today!