Supply Chain Blog
Hi Friends,
As the nation thaws from the artic blast, the number of workers seeking unemployment benefits fell sharply last week and a measure of consumer confidence jumped. In addition, we are getting positive news that the pandemic end may be in sight as we creep closer to herd immunity by early summer.
Add to this the real prospect of a 1.9 trillion-dollar infusion into the economy and we are looking at significant GDP growth in 2021.
The good news/bad news for the logistics industry is that consumers are going to spend putting more pressure than ever on the already constrained transportation industries. The real shortage of driver’s, capacity is in short supply and pricing will continue to rise in trucking, rail, air, and ocean sectors.
Let’s look at the numbers.
Hi Friends,
Well it’s been quite a month with political unrest, a new administration, and the pandemic going strong. With the vaccinations going into arms, let’s hope we reach herd immunity sooner than later.
Consumers are amazingly upbeat as confidence in the U.S. rose in January according to the Conference Board. Optimism has returned as expectations for the economy and the labor market improvement grow. The consumer confidence index rose to 89.3 in January from 87.1 in December.
2021 represents a new beginning for us all with expected economic expansion.
Meanwhile, the logistics markets are staying hot as carriers continue to command high freight rates, industrial real estate costs are elevated, and labor is hard to find.
Let’s look at the numbers.
Hi Friends,
While the pandemic rages along with Congress, the economy putts along and freight/logistics markets remain hot.
The balance of political power has shifted with Democrats maintaining control of the White House as well as both legislative chambers until at least November 2022, when the next midterm elections take place. Margins are razor thin meaning bipartisan support will be critical to developing and passing any major legislation, including a transportation and an infrastructure package.
As we begin 2021, we face a surge in coronavirus cases, new restrictions on business, cautious shopping and slowing economic growth. The number of workers filing for jobless benefits posted its biggest weekly gain since the pandemic hit last March and the head of the Federal Reserve warned the job market has a long way to go before it is strong again.
Let’s look at the numbers.
Hi Friends,
As we conclude 2020, I congratulate you all for your perseverance throughout the toughest year in my memory. We have gotten past the election, vaccines are out (within months we’ll be awash in them from multiple suppliers), and the economy has performed better than expected.
Before we get into the recent economic and logistics news, let me wish every one of you the happiest of holiday seasons. May you be granted health, prosperity, and hope in the new year with the people you love.
Hi Friends,
What a long, strange trip it’s been in 2020 as we have seen political theatre, a deadly pandemic, and a collapse in employment. We have regained more than half the jobs lost in the sudden downturn, consumer confidence remains high and spending is almost shockingly robust. Retail sales rose nearly 6 percent from the year before, despite the virus in October. Housing is booming, home prices are rising rapidly, and the stock market is setting new highs, all of which suggests that the next six to nine months will continue to see progress.
This rallying prosperity is of no use to the 11.1 million Americans still out of work, or the unprecedented number of people lining up at food banks across the country. As we continue to dig out of the recession, job openings will increase, and employment will rise. Unemployment today stands at 6.9 percent, down from 14.7 percent in April.
In this recovering economy the logistics market is as robust as I can ever remember. Freight rates reflect the tight trucking capacity and parcel carriers are rationing their networks ability to pick up, sort, haul, and deliver packages. Despite high unemployment, distribution centers and trucking companies are finding it hard to hire.
I hope you had a great Thanksgiving and stayed safe and healthy. We are going to have to strap on our helmet to get through the remaining holiday season. Let’s look at some numbers.