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Trucking Revival Picks Up Speed
Discussion in 'Truckers News' started by Baack, Jul 26, 2010.
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Good to see that the trucking industry is on the up instead of down.
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And after the inventory is brought back up, then what ??????
I don't know !!!!! -
this is what I don't get earnings are up but the ATA just today said tonnage is down for the second month in a row.
http://news.yahoo.com/s/usnw/20100727/pl_usnw/DC41402_1
May and June marked the first back-to-back contractions since March and April 2009. The number of trucks keeps reducing in both stories mine and the one from the staff there are 14% fewer trucks on the road now then in 2008. Are profits going up because of default (less trucks to haul) or because of growth? The wages aren't growing in this industry and the owner ops I know aren't getting much if any increases on rates unless it's food grade stuff like produce. Would like to know what others think. In Economic rebounds trucking is supposed to be the first industry out but I haven't seen the pickup yet is anyone else seeing it? -
My prediction is trucking will enter another downward turn. Freight rates, and even freight itself, seem to have leveled off or decreased over the last few weeks. Companies have cut expenses everywhere they can, and the remaining carriers are getting the freight the closed carriers left. Yhis will creat an increase in earnings. Every economist is predicting a slow back to school and fall season in the retail market, which will mean less freight now and in the immediate future.
All retailers have been cutting inventory, and completely eliminating certain goods in their stores. When I bought into a retail business, my first goal was to turn the balance sheet around into the black. One way I did this was to reduce the amount of inventory of slow moving goods, and eliminate products that took up shelf space and only turned once or twice a year. Also duplicates were cut way back, which is different brands of the same thing.
This was almost a two year project, where my purchases from the suppliers dropped quite a bit. When the mix of inventory was where I wanted it to be, I ordered new merchandise to replace the dropped, and ordered enough to keep my other inventory steady, instead of falling. My shipments went up with this. After the initial uptick in ordering, my orders leveled off to replacement of items sold, which was more than when I was decreasing inventory, but not as much as right after the reduction ended, where I restocked with a different mix. I feel this is where most retailers are. They are in the maintain mode after a uptick from a remix.
Of course, I could be wrong.dannyb1212000 Thanks this. -
I agree with you, can't deny that May lost 0.1% of tonnage and June lost 1.4% on top of that. July is a bad month every year because of Auto shutdowns in manufacturing and many like Ford and Toyota took an extra week off this year , those numbers are not in yet. Right now the back to school stuff should be slamming everyone but it's not and school starts next month in many parts of the country. Those earning reports go back three months reporting the past quarter. It doesn't reflect what is going on now. Those ATA companies are getting more freight not because the Economy is growing but because the smaller companies are still cutting back the number or trucks or closing. It's default growth "I am getting bigger because your getting smaller even though the market is getting smaller"stranger Thanks this.
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