Trucking | Retail Sales a Good Sign for Truckers

Retail Sales a Good Sign for Truckers

Overall this is a good time for trucking, Brady said, pointing to retail sales driving local and regional freight movement, low inventories, increasing manufacturing activity, and tight carrier capacity. Carriers are able to pass along high costs, namely steeper fuel prices as a result, he said.

“You have carrier capacity that is relatively tight, and since capacity is tight they can pass along fuel prices,” Brady said. “Fuel prices used to kill carriers— but with trucking in such high demand, that’s not happening today.”

And the Institute for Supply Management (ISM) recently released a manufacturing report stating the purchasing manager’s index (PMI) in May rose 0.4% over the month earlier, an indication that an already strong manufacturing sector is growing “at a faster rate.”

“Carrier capacity will remain tight if the economy continues to grow throughout the year,” Brady said, adding that strong manufacturing output coupled with brisk sales means the supply chain is moving. “With retail sales expanding, there won’t be any bloating of inventory in the short term.”

Overall, all indications from the manufacturing to the sales rung of the supply chain point to great news for trucking throughout the year, Brady said. “I’m looking for increased shipping volumes, and freight volumes as a result of the growing economy.”

I’m looking for increased rates. SHOW ME THE MONEY!

I see all this news about rising rates. I know it will take a little longer to reach the broker level. I don’t know the percentage, but a lot of brokers only exist because they can undercut the major carriers. Hopefully all this good news will trickle down to the rest of us eventually.