Industry News

DB Schenker Plans to Change U.S. Air Operations From Dedicated to Non-Asset Fixed Model

Due to changing marketplace conditions DB Schenker Logistics announced last week it will be switching to a non-fixed asset model instead of operating its own dedicated air fleet. They will begin the “phasing out” process in the next few weeks  and competitors are preparing for the excess business. DHL Global Forwarding has already contacted their customers to inform them that they will increase system capacity after Schenker’s exit on September 2nd.  Full Article

Decline in FTR Index Reflects Challenging Times for Shippers

FTR Associates recent release of the Shippers’ Condition Index (SCI) shows increasing transport costs and tightening capacity. With a reading of -11.4, FTR senior consultant Larry Gross said, “This is the worst SCI reading of this cycle.”  FTR’s Truckers Conditions Index for March rose 3.38 points from February coming in at 13.30. With a reading above 10 points, this shows pleasant volume, prices, and margin for carriers.  Full Article

Freight Interests Gear Up for ‘Combat Service’ on Capitol Hill in Rush to Fund Bill

The general consensus after the annual conference of Coalition for America’s Gateways and Trade Corridors (CAGTC) was that major industry leaders need to push the need for a national freight strategic plan and funds to support the next surface transportation bill. Leslie Blakey, CAGTC’s executive director believes the general public does not fully understand how important freight is and how it affects their quality of life and economic growth.  Full Article

Surprisingly Strong Freight Demand Spurs Truck Capacity Concerns

The improving U.S. economy and law enforcement cracking down on unsafe truck drivers will likely cause truck capacity shortages in the near future. Veteran trucking analyst John G. Larkin recently told investors, “The carriers best positioned for a potential capacity shortage will be those that can provide shippers with the capacity to handle large volumes, in some cases across different modes, while maintaining strong service levels.” Trucking executives said the increase in demand is due to the large capacity in the truckload market after the recent recessionFull Article

Japanese Earthquake Affecting Global Supply Chain

The recent earthquake and tsunami in Japan are having a large affect on the global supply chain. The damage to factories in Japan is causing manufacturers in the U.S. to shut down due to lack of supplies. Suppliers in Taiwan and Southeast Asia are receiving a boost in orders since Japan is unable to fulfill orders. As a result of these natural disasters, many companies have to reevaluate their supply chains. Full Article

Diesel Prices Resume Growth Path

According to the Department of Energy’s Energy Information Administration, diesel prices went up 2.5 cents to $3.932 per gallon this week. The main reason diesel prices have reached their highest level since the week of September 26, 2008 is because of the political and civil unrest in the Middle East and North Africa. Oil producers in Libya have shut down operations and the recent earthquake and tsunami in Japan may lead to higher fuel prices. This in turn could cause higher operating costs for shippers and will force them to increase rates. Full Article