Industry Indicators: April 18-24
Industry Indicators: April 18 - 24
iLevel Logistics presents intriguing data that offers a snapshot of notable industry changes and events during the week of April 18th through April 24th.
Truck Parking, Amazon, Spot Rates, Biden, and More
More stats on parking problems
Source: FreightWaves
According to the 2020 Jason Law survey, 87% of truck parking spaces nationally were located at private commercial truck stops. It seems to be a private sector responsibility. Can governments invest in additional parking at rest areas? Yes, but will they?
In the meantime, high percentage of drivers report persistent problems finding safe parking areas.
The most frequent unofficial/unauthorized parking areas truckers’ access are ramps and shoulders. In 2009, trucker Jason Rivenburg sought a safe parking spot. He couldn’t find one and instead parked at an abandoned gas station. He was murdered while sleeping – hence the motivation for the passage of Jason’s Law in 2012.
DAT National Spot Rates – Van, Flatbed, Reefer
Source: DAT
Last week, April 12-18, national spot rates for van and reefer hold steady while flatbed continues to rise – adding another 5 cents a mile. This is 26 cents higher than for same week in 2018 – another high demand period. The increases reflect strong demand to move construction and industrial loads.
Amazon
Source: stronger than ever
Amazon’s performance during the pandemic improved it’s standing among consumers. Yes, execution matters. Fast, free shipping and easy, convenient purchase process created goodwill.
Now, comparatively few consumers feel negatively about Amazon’s impact on the environment.
Amazon also appear to be moving into the renewable natural gas business. Freightwaves reported an agreement between Amazon and Clean Energy Fuels. Evidently, Amazon will be fueling some of its vehicles with Clean Energy’s low-and-negative-carbon renewable natural gas. The chart below highlights the favorable price advantage of natural gas (CNG) over gasoline and diesel. The price of natural gas is substantially lower, and its modest variability attractive. Also, there are 900 natural gas stations already established across the United States.
Freight rates
Source: Cass truckload linehaul index
The Cass index measures per-mile truckload linehaul rates, excluding additional cost factors such as fuel. In March, the index reached 143.1, an all-time high. Truckload rates are up 10% since mid-2020.
Freight and Rail Recovery
Source: FTR Transportation Intelligence
Beginning in late August, truck freight activity reached and surpassed pre-pandemic levels. However, rail freight activity remains at about pre-pandemic levels.
Unemployment claims
Source: CNBC
This week the Labor Department reported lower than expected filings for unemployment benefits – a new Covid pandemic low. The figure is the lowest since the week ending March 14, 2020.
Small fleets and owner operators not excited about Biden
Source: Overdrive
Owner operators and small fleet owners – less than 10 trucks, are concerned about the impact of the Biden administration on trucking. In an Overdrive survey, respondents mentioned fuel prices, wages, excessive government regulations – including the PRO Act, rising taxes, and hours of service requirements. This led to a large majority of respondents expressing extremely negative views about Biden’s impact on the trucking business.
