Recon Logistics - Freight Advisors

Recon Market Update - June 11, 2021

Posted by Hank Newman on Jun 11, 2021 10:59:03 AM

Cass just released their monthly transportation indexes and it's always an interesting read so I'll let them speak this update with a link to their report for May, 2021.

I find the last line interesting - "With enough time, we believe the cure for high prices is high prices."  Meaning - don't expect freight rates to go down.  The "new normal" is all about looking inwards to find freight savings (planning, optimization, etc).

Freight Expectations

Even with considerable supply constraints, the freight cycle is in high-growth mode. While y/yUpdate hand writing with a blue mark on a transparent board comparisons will naturally slow going forward, the freight markets continue to benefit from a very strong retail economy, very tight inventories, and a backlog of containerships still anchored in the San Pedro Bay.

In addition, while the industrial sector continues to struggle on a relative basis, U.S. capital goods orders have recently broken through a generational ceiling. We believe this portends an unprecedented U.S. capex boom.

So, even as federal stimulus effects fade and consumer spending gradually reverts back to services from goods, the extraordinarily strong U.S. freight recovery across the network in 2021 also has longer-term growth drivers. 

Tags: Freight Class, Accessorials, LTL, Freight Rates, LTL Carrier Cost, Rules Tariff, Logistics, LTL Service, Limited Access, Freight Technology, TMS, Freight Insurance, Freight Claims, Freight News, Freight Update

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