Latest news with #LogisticsManagers'Index
Yahoo
a day ago
- Automotive
- Yahoo
Truck Parking Club doubles network in under 6 months
Chattanooga, Tennessee-based Truck Parking Club recently announced it has surpassed 2,000 property member locations nationwide, a doubling of its footprint in six months. Part of the growth came from targeting diverse property types, from trucking companies and repair shops to storage facilities and real estate investors. 'This isn't just about hitting a number – it's about solving a decades-old problem that costs the trucking industry billions annually,' said Evan Shelley, co-founder and CEO of Truck Parking Club, in a press release. 'Every new location means drivers spend less time searching and more time earning. Our goal is clear: reduce parking search time to under 10 minutes per day.' The rapid expansion and milestone followed an announcement in February of the addition of industry veteran Brent Hutto as chief relationship officer, the position he formerly held at Truckstop. Part of the push is to build on driver momentum and turn it into enterprise-level relationships. Reed Loustalot, chief marketing officer at Truck Parking Club, said in an earlier interview with FreightWaves, 'Truck Parking Club grew organically and doing that we coincidentally have drivers in 60 of the top 100 fleets booking parking with us, and we have never talked to the fleets directly about having their drivers use our app. It's their drivers, their dispatchers and their fleet managers finding us.' Another advantage of being a truck parking aggregator is it's less expensive and turns otherwise unused parking locations into income production opportunities. Shelley wrote, 'New truck parking construction typically costs $100,000-$200,000 per space and takes years to complete, while Truck Parking Club can activate existing spaces within a day.' Looking ahead to the next milestone, the company is setting its sights on 10,000 locations. The Logistics Managers' Index's recently released May data showed a second consecutive month of expansion. The May LMI came in at 59.4 points, up 0.6 points from 58.8 in April. The m/m increase was impacted by inventories, which saw higher costs and slower movement compared to earlier in the year. The LMI is a diffusion index, with a score above 50 signaling expansion, while below 50 is a contraction. The interplay between warehousing costs and inventory levels was a big theme in May. Warehouse capacity fell 5.4 points in May to 50, while warehousing prices rose 0.2 points to 72.1, a strong expansion. 'This suggests that the inventories that were rushed into the country earlier this year are now static and holding them is expensive,' noted the report. The LMI transportation metrics were mostly stale, with movement less than 1 point. There were some nuances, according to the report. Capacity dipped slightly to 54.7, with upstream firms facing tighter space at 50 points compared to downstream firms' expansion of 65.3 points. Transportation prices rose more for downstream (66.7) than upstream (61.7), but the gap wasn't significant. Transportation utilization fell to 52.6 points, the lowest since November 2023. Despite lower diesel prices ($3.487 a gallon), a predicted import surge could stress intermodal and over-the-road networks, testing supply chain flexibility. On the import front, prognostications for an import boom similarly seen during COVID remain cloudy, due in part to American consumers having less cash than during the stimulus-fueled buying binge. The report adds that it was demand-driven, while the current surge in imports during Q1 was more supply-driven, as shippers tried to pull goods forward to avoid higher costs. 'Even though costs were high, there was a sense that they could grow higher in the future. Today, after several rounds of start-and-stop tariffs, shippers may doubt that the highest levels of threatened tariffs will ever come to pass. At the same time, costs are higher on imports from essentially every country than they were a year ago,' added the report. The post Truck Parking Club doubles network in under 6 months appeared first on FreightWaves.
CNBC
2 days ago
- Business
- CNBC
How big drop in trade deficit as tariffs hit imports looks inside U.S. supply chain and economy
The U.S. trade deficit fell by the largest amount on record in April as imports fell by over 16% after a surge in orders to beat President Trump's tariffs, but there's a worrying flip side for the consumer. As the trade war whipsaws global economic activity, supply chain data shows that the retail inventory crunch could be next. From freight orders to inventory and warehousing, the latest logistics data shows the inability of importers to make decisions on adding to inventory levels. One closely watched data point is the widening gap between inventory levels and inventory costs. These metrics generally track together, according to the Logistics Managers' Index. In 2024, the average space between these metrics was 12.1 points. But in May 2025, the gap has expanded to 26.8 points, the third-highest in the history of the index, said Zachary Rogers, associate professor of supply chain management and Colorado State University Supply Chain Management Forum director. When inventories are high and quickly expand, warehouses cost more. Traditionally, when warehouse inventories decrease, warehouse costs slow down as well. But because of the front-loading of products ahead of the tariffs in the January-March period, inventory is flat, with replenishment orders not coming in. But costs are still up because the inventory is being held longer. "The situation we're in now, inventories are up, and they're sitting there," said Rogers. "Essentially, imports in January, February, and early March looked a lot like what we would normally see in August, September, and early October." Normally in mid-October, holiday sales kick into gear, which would move inventory out of the warehouse. But given the uncertainty in tariffs and concerns about the financial health of the consumer, retailers have told CNBC they are not placing full orders. "Warehousing capacity is tight, which means there is no inventory movement, and the associated costs (e.g., warehousing prices and inventory costs) are much higher than what we would normally see at this time of the year," Rogers said. "This means the inventory is getting more expensive to hold." Ocean freight orders from around the world to the U.S. show the pause button in product orders continues. As President Trump and Chinese President Xi Jinping held their first call since a raft of new tariffs on China in an initial attempt to de-escalate the trade war, data on Chinese ocean freight bookings to the U.S. shows a picture similar to the softness in global orders after the surge. A recent drop in freight vessel sailings from China drove up the cost for imports as there has been less capacity available on ships. Peter Sand, Xeneta chief shipping analyst, said the recent 88% increase in ocean freight spot rates on the China to U.S. trade route indicates demand of some shippers willing to pay to pull forward their freight during the 90-day tariff pause. "However, this will not last because [vessel] capacity is heading back to the Transpacific and the desperation of shippers to get supply chains moving again will ease once boxes are on the water and inventories begin to build up," said Sand. "Spot rates are expected to peak in June before downward pressure returns." The conditions in the freight market resulted in an advantage for larger firms over small businesses, according to Rogers. "Smaller firms were boxed out during the big rush of imports in Q1, so they have had to bring inventories over later, resulting in higher costs," he said. But since the larger companies aren't continuing to stock up, as the surge ends it is impacting smaller supply chain companies directly too. The smaller firms in the Logistics Managers' Index survey sample are representative of the "middle mile" in supply chains, wholesalers and logistics service providers as the points in the supply chain where freight is transported between a supplier's warehouse, distribution center and the final point of delivery, which could be a retail store or a customer's doorstep. They get hit when large manufacturers and retailers avoid inventory as much as possible — unlike Covid, they are running leaner inventory overall, which further squeezes the "middle mile." "Essentially, it is the small businesses of America that are bearing the brunt of the tariffs right now," Rogers said. "This could change as inventories move downstream to retailers if costs could be passed down to the consumer," he added. Recent Federal Reserve survey data shows many firms planning to pass on price increases resulting from tariffs to customers. But the ability to pass on price increases to customers varies business to business, and based on end customer. Helen Torkos, president and owner of Regent Tek Industries, which manufactures pavement markings, tells CNBC the global trade war has greatly impacted the cost of importing the raw components needed to manufacture the highest grade of thermoplastic road markings, the product that is on state, city, and local roads and highways. "The majority of our components are now being tariffed," said Torkos. "Our cost has gone up tenfold. We cannot pass on these costs to some of our customers because they cannot afford the increases. We also cannot source these products domestically." Torkos said the uncertainty of future tariff costs has also led to the cancellation of key projects. "The recent removal from several bid processes due to the tariffs causing rising material prices further underscores the impact of these tariffs on our operations," Torkos said. To address the swings in tariffs, and in an effort to offer more certainty on possible freight costs, logistics firms are launching tariff analysis tools. C.H. Robinson and Flexport are among companies to roll out technology that allows businesses and consumers to model tariff impact on price. Wine for Europe is one example that can impact both the business and consumer. The EU was threatened by President Trump in a social media post of a 50% tariff, only to have that threat walked back by the president, delaying that increase from June 1 to July 9. According to the Flexport Tariff Simulator, if a container with bottles of Chianti from Italy was processed by U.S. Customs on June 2, the wine would be under a 10.24% tariff rate. The duties for one 20-foot container filled with 0.75L bottles of Chianti would be $27,024. If the tariff were increased by another 50%, the tariff bill would soar from $27,024 to $132,624. The tariff rate was based on a wholesale value of $264,000 ($20 a bottle w/13,200 bottles in a container.) Then, there is the stacking of multiple tariff layers already implemented during the trade war. These duties have pushed up costs to import retail goods much higher than the 30% associated with the tentative agreement. Using an example of a common summer retail purchase, Flexport data shows a 20-foot container storing 60 fully assembled aluminum chaise lounge chairs with a wholesale value of $60,000, departing from China on June 2 and arriving on July 15, would face a 70% tariff — that includes Section 301 tariffs at 25% under the 1974 Trade Act's unfair practices policy; Section 232 tariffs on steel and aluminum at 25%; and the national emergency powers fentanyl tariffs at 20%. The total amount in tariffs for that single container would be $42,000. "It's not that simple to calculate," said Ryan Petersen, Flexport CEO. "There's still a lot of uncertainty about what's going to happen. For example, it may not be on the tip of everyone's tongue right now, but July 8 is the end of the reciprocal tariffs pause. That could end, and tariffs may not be 10% everywhere. Commerce Secretary [Howard] Lutnick has made comments he is committed to making the tariffs higher." A women's top imported from India faced a tariff rate on June 2 of 42%. After the reciprocal tariff deadline is lifted, the same top will be taxed at 58%. Mike Short, president of global forwarding at C.H. Robinson, said for companies to save on tariff costs, they need to have the ability to search their SKUs and identify the product's point of origin so they can tabulate tariff costs. "Based on that information, they could then quickly compare their total duty spending versus various alternative sources," said Short. "Knowing the spending scenarios can provide businesses with clarity on where to focus their efforts to achieve savings and diversification, down to the individual product level."
Yahoo
5 days ago
- Business
- Yahoo
Transportation pricing grows faster than capacity again in May
Transportation metrics saw little change in May as capacity, utilization and pricing remained in expansion territory, according to a monthly survey of supply chain professionals. The Logistics Managers' Index – a diffusion index in which a reading above 50 indicates expansion while one below 50 signals contraction – had a 54.7 reading for transportation capacity during May, which was roughly in line with April. The Tuesday report classified capacity as 'tight, but not too tight' while growth in transportation utilization remained largely anemic at 52.6 – the lowest reading for the subindex since November 2023. Capacity was reported to be tighter for upstream companies like manufacturers and wholesalers, which returned a neutral reading of 50 compared to downstream retailers, which said capacity notably expanded (65.3).Even with available capacity and only modest growth in utilization, transportation prices (63.1) continued to step meaningfully higher. Prices were just slightly inflationary at the beginning of the month but surged to 71.5 in the second half. (The report classifies a reading over 70 as 'significant expansion.') The pricing index has outpaced the capacity index for 13 straight months. The dynamic could represent an improving freight market, but it also reflects transportation companies offsetting higher operating costs through rate increases. Increases in logistics costs were more pronounced at smaller companies (69.8) than at larger entities (56.7). Transportation prices were forecast to be significantly higher a year from now, with respondents returning a 75 reading for the pricing is a consensus building across the market that 'the worst-case scenarios associated with potential tariffs will not come to pass,' and 2026 could be more reflective of a transportation recovery, barring a macroeconomic recession. The overall LMI came in at 59.4 for May, up 60 basis points from April. In addition to higher transportation prices, increased costs across the supply chain drove the increase in the overall index. Inventory costs (78.4) were up 2.8 percentage points even as growth in inventory levels (51.5) slowed by 5.5 points. The inventory costs index was at its highest level since October 2022, and the 27-point gap between the two subindexes 'suggests that the inventories that were rushed into the country earlier this year are now static and holding them is expensive,' the report said. 'If the spread between these two metrics remains this high, it could spell trouble for the overall economy.' Inventory levels moved slightly into contraction in the back half of the month. Upstream firms (56.5) were taking delivery ahead of tariffs while downstream companies saw contraction (43.1). 'This is the first instance of contraction at the Downstream level since January and may indicate that the pull-forward that characterized much of the Winter and early Spring has subsided.' Elevated but static inventories kept available warehouse capacity neutral at 50, which was 5.4 points lower than in April and the lowest reading in more than a year. Warehouse utilization (62.5) stepped 2.4 points higher, keeping warehouse prices (72.1) highly inflationary.'Taken altogether, respondents expect higher than normal inventories, tight capacity, and significant cost expansion,' the report said. 'These robust predictions may underlie a feeling that the current uncertainty surrounding trade issues will be wrapped up by this time a year from now.' The LMI is a collaboration among Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University and the University of Nevada, Reno, conducted in conjunction with the Council of Supply Chain Management Professionals. More FreightWaves articles by Todd Maiden: Yellow Corp. to sell 4 terminals for $6.8M Proxy adviser backs activist's move to reshape Forward Air board J.B. Hunt expands premium intermodal offering to shippers in Mexico The post Transportation pricing grows faster than capacity again in May appeared first on FreightWaves.
Yahoo
16-05-2025
- Business
- Yahoo
SONAR unveils Trade War Command Center amid supply chain volatility
In response to the escalating complexity of global trade disruptions, SONAR has launched its Trade War Command Center, a comprehensive solution designed to help logistics professionals navigate the unpredictable landscape shaped by recent trade policies. The platform comes at a critical time as supply chains continue to face pressures from shifting trade agreements, tariffs and geopolitical tensions that have characterized international commerce in recent years. The Trump administration's aggressive trade policies, including tariffs on billions of dollars of imported goods, have created unprecedented challenges for logistics managers, procurement teams and supply chain strategists. These policies have forced companies to reconsider sourcing strategies, routing decisions and inventory management practices, often with limited visibility into how these disruptions ripple through the global supply network. The Trade War Command Center aims to address these challenges by offering a unified view of international and domestic freight flows, warehousing pressures, and trade lane shifts. Located under the platform's Insights dropdown menu, this centralized dashboard provides users with the ability to monitor multiple freight modes simultaneously while tracking inventory and warehouse trends that signal future market movements. At the heart of the Command Center is a suite of data-driven tools designed to provide comprehensive market intelligence. The platform tracks ocean container booking volumes for the top 10 U.S. ports and countries shipping to the U.S., offering forward-looking insights into container movements that help identify emerging or declining trade lanes. Complementing this view, U.S. Customs TEU import volumes provide data when the freight is actually landing, allowing users to identify ports gaining or losing market share amid shifting trade domestic logistics planning, the platform incorporates National Truckload Volumes data to gauge inland freight demand and potential capacity constraints. Intermodal Container Volumes tracking offers visibility into both international and domestic rail shipments across the top 10 rail terminals, providing crucial information about mode shifts that often occur in response to trade disruptions. Perhaps most innovative is the integration of the Logistics Managers' Index, enabling users to easily compare freight movement data with broader supply chain metrics. This feature tracks inventory levels, indicating whether shippers are restocking or depleting – a critical signal for forecasting future freight demand. The platform also monitors warehouse capacity and pricing, enabling users to anticipate storage constraints and cost pressures that frequently accompany trade disruptions. 'Whether you're managing procurement, transportation or logistics strategy, this dashboard offers the real-time intelligence you need to respond faster, plan smarter and reduce exposure to unexpected volatility,' said Julie Van de Kamp, SONAR's chief customer officer. This real-time intelligence has become increasingly valuable as companies face shorter decision time frames and greater consequences for misreading market signals. For logistics managers grappling with tariff impacts, the Trade War Command Center provides specific benefits. By revealing how volumes are shifting across countries, ports and transportation modes, the platform helps identify alternative sourcing locations, optimal port routings and the most cost-effective transportation modes. This comprehensive view enables companies to make proactive decisions rather than merely react to disruptions after they've already impacted platform also addresses a common challenge in today's fragmented supply chain management landscape: the need to connect disparate data sources. 'By connecting port, intermodal, truckload and warehouse insights in one place, it enables teams to make decisions proactively, with clarity and confidence,' Van de Kamp explained. This integration helps break down information silos that often prevent companies from seeing the complete picture of how trade disruptions affect their operations. As trade tensions continue to influence global commerce, tools like the Trade War Command Center will likely become essential components of resilient supply chain management. The platform represents a significant step toward providing the visibility and analytical capabilities needed to transform unpredictable trade environments from threats into opportunities for competitive advantage. For more information on SONAR's Trade War Command Center, click here. The post SONAR unveils Trade War Command Center amid supply chain volatility appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
Layoffs Coming for Trucking, Retail Ahead of Projected Recession, Report Says
Alternative asset management firm Apollo Global Management projects a summer recession onslaught by trade war-inflicted stagflation, according to a report published by Torsten Slok, the firm's chief economist. That spells trouble for U.S. retailers and logistics providers. Slok's report projects that in late May or early June, layoffs in the trucking and retail industries are likely to begin, just ahead of a summer recession. More from Sourcing Journal The projections come from a slew of data points about consumer sentiment, logistics activity following U.S. President Donald Trump's back-and-forth position on tariffs, causing widespread concern over the state of the global economy. The logistics side of the house Data from Apollo's report shows that, ahead of tariffs taking effect, inventories rose rapidly. That's likely because brands and retailers alike sought to frontload basic items at the lowest-possible entry rate, particularly as uncertainty loomed about the rate of tariffs in key production countries like Vietnam and Cambodia. Simultaneously, though, sales of heavy trucks declined 'significantly' in March, per Apollo's analysis of Bureau of Economic Analysis data. The Logistics Managers' Index, which measures industry trends and developments, also declined to 57.1 in March, down 5.6 points from February. Zac Rogers, analyst for the Logistics Managers' Index and an associate professor of supply chain management, said at the time that the slowdown can be attributed to the shifting of three core metrics dropping between February and March: inventory costs, warehousing prices and transportation prices. 'This suggests that supply chains revved up in February and early March to bring goods in, but have slowed in more recent weeks as more trade controls have been implemented,' Rogers wrote in the March monthly report. 'It will be critical to continue monitoring this situation over the next few months. Dynamics in the transportation market are often a leading indicator for movements in the overall economy. If we see a sustained pullback in freight, it may signal coming issues in the overall economy.' According to Slok's data, April has seen declining demand for cargo ships coming from China to the U.S.; he projects that in early-to-mid May, once container ships inbound to U.S. ports from China 'come to a stop,' trucking demand will also halt.
