Supply Chain Blog
Hi Friends,
The recovery of the economy appears to be on track even with the surge in Delta variant Covid. Jobless claims fell slightly to 385,000 last week and the trade deficit widened to a record in June as the American economy drove strong demand for foreign-made goods reflected in durable goods sales.
The economy likely returned to its late-2019 size during the three months through June, helping to lift global output above its pre-pandemic level for the first time.
There is no end in sight for high transportation costs, so shippers are bracing for increases of 10-12 percent going into 2022.
Hi Friends,
I hope everyone has a great fourth of July celebrating Independence Day. BBQ and fireworks were the order of the day for me.
After wrapping up the second quarter, the country continues to enjoy a strong economy while watching the laws of scarcity drive up the costs of virtually everything. Is this rate of inflation sustainable? I doubt it as supply chains return to some semblance of normal by the end of the year.
Politics in a nearly even Congress is brutal, and the infrastructure bill hangs in the balance.
Meanwhile freight capacity remains tight and pricing high for all modes.
Let’s look at the numbers.
Hi Friends,
While it’s been unseasonably hot here, the economy continues to roll on despite parts/chip shortages, labor tightness/cost escalation, rising cost of commodities, as well as a continual shortage of motor carrier capacity.
E-Commerce isn’t slowing down either as Amazon’s Prime Day shows. Delays are happening as parcel and LTL carriers’ networks are overflowing.
Let’s look at the numbers.
Hi Friends,
Inflation and scarcity are the current trends to watch. Overall prices jumped at a 9.7 percent annualized rate over the three months ended in May. On a month-to-month basis, overall prices rose a seasonally adjusted 0.6 percent and core prices rose 0.7 percent however economists expect this trend to ease in the fall.
The Logistics Managers Index (LMI) shows related logistics costs remaining elevated and shippers are in a budget bind as high freight rates show no signs of significant abatement.
Let’s look at the numbers.
Hi Friends,
As we enter the Memorial Day weekend, I wish you all a safe and happy holiday. Please pause to remember those who our nation has lost in service to this great country.
We are wrapping up May with continued economic momentum as the country slowly returns to normalcy after the pandemic. Shortages will continue to exist throughout the year as inventories remain lean and order lead times are extended.
The mother of all shortages is in transportation capacity where ocean rates have accelerated with container rates increasing almost four-fold. Air freight rates have doubled and as explained in past blogs, the truckload market has exploded with some lanes charging over four bucks per mile. Even FedEx has admitted their network is undersized to meet the current level of parcel shipping.