Industry Indicators: March 21 - 27
Quote of Week
Source: CNBC
Alan Baer, President of logistics provider, OL USA LLC, commented on the stranded container ship Ever Given in the Suez Canal.
“The key to this problem hinges on how much longer it will take to move the Ever Given, USA importers face arrival delays of three days right now and this will continue to grow as long as the disruption continues.”
Suez Canal blockage creates headaches, for many
Sources: CNBC & SupplyChainDive
The marooned vessel, Ever Given, in the Suez Canal is costing $400 million an hour. It’s delaying already stressed supply chains around the world. Here is a list of just some of the ships impacted by the blockage and their TEUs (twenty foot equivalents).
Here is the number of ships waiting by cargo and anchorage.
Easy Targets
Source: OverDrive
For environmental policymakers, heavy trucks are an easy target. Over the past 50 years, the average fuel economy of heavy trucks hardly moved. A flat line across decades. By contrast, since 1970 the change in fuel economy for passenger cars is impressive. Given the disparity, the next steps for a Biden administration serious about global warming seem obvious.
February Spot Rates and Volume Rise
Source: FleetOwner
Truckload freight prices increased in February as did national average load-to-truck ratio for dry van and reefer freight. Increases were in part attributed to severe weather across much of the United States. March rates are expected to remain elevated.
Where are the Drivers?
Source: trucknews.com
According to ACT Research For-Hire Trucking Index, driver scarcity reached a three-year high in February. While fleets are planning for spring and summer volume growth driver constraints will keep the truckload market capacity tight.
Most pressing issues in trucking industry
Source: Consumer Brands Association
The following are the top 10 issues identified by commercial drivers and motor carrier companies. Notice the number 1 and 2 ranked issues for commercial drivers compared to motor carriers. Take a moment and check out other differences. The mismatches could in part help explain driver scarcity.
Men and women drivers agree – driver shortage and driver pay linked
Source: TransportDive
In a recent survey, both women and men drivers cited ‘enough pay’ as the top driver retention factor. They also cited “people I work with keep their promises” as an important issue. Sounds right. Just like most other professions. Drivers want to be paid well and have faith in co-workers and employers. Check out iLevel Road Scholar for a discussion of a new approach – driver centrism.
The size of nuclear verdicts is increasing
Source: CNBC
From 2010 to 2018, the average verdict for a lawsuit above $1 million involving a truck crash rose almost 1,000% -- increasing from $2.3 million to $22.3 million! These so-called nuclear verdicts are pressing insurance rates ever higher for trucking firms. One way to cut costs is to avoid excess insurance. But this merely exposes the companies to greater risks.
Moreover, according to a recent study by Injury Facts, there are more trucks involved in more crashes – both the raw number of trucks (left vertical axis) and involvement per million truck miles traveled (right vertical axis)
Finally, with more accidents come more deaths and injuries – for truck drivers and occupants of other vehicles.
