As the nation turns its attention to reasons for gratitude this Thanksgiving season, we here at UltraShipTMS, the Supply Chain Collaborator blog and the logistics industry in general have more than the usual reasons to be thankful. Even in the leaner years, we as Americans always have plenty of abundance to reflect upon. But this year in particular, we are blessed with a bounty worthy of a hale and hearty Thanksgiving celebration. Here are some of the positive indicators supporting our exuberance during Thanksgiving 2017.
Freight Volumes Up and Rising
According to the US Bureau of Transportation Statistics, “For-hire freight shipments in August 2017 were 38.0 percent higher than the low in April 2009 during the recession.” And this year alone “for -hire freight shipments measured by the index were up 4.9 percent in August compared to the end of 2016.” This trend (as the chart below illustrates) has a notable upward bent in 2017, indicating strength.
Tightening Capacity and Rising Rates are a Bullish Leading Indicator
GDP is up an annual rate of 3% in the third quarter and spot mile pricing is exhibiting a sustained level above $2.00 per mile. Transportation is one of the leading indicators used by investment market analysts as a bellwether for the overall health of the economy. The strong rate growth exhibited among carriers points to a continued economic tide promising to lift all boats.
TMS and Other Logistics IT Solutions in High Demand
OK, well this one makes for a very happy Thanksgiving for this organization and others like it. However, it is worth noting that the growth experienced by logistics solution providers is frequently plowed back into research and product development which amplifies the efficacy and profitability of those organizations leveraging these tools and technologies.
In a discussion of how tech innovation is enabling visibility and optimization for shippers, Logistics Viewpoints noted, “shippers are placing even greater focus on expanding the capabilities and functionality of their transportation management system (TMS). Specifically, gaining real-time visibility of shipments and access to real-time data and reporting. Shippers want to see live performance on what is going on in their network – both inbound and outbound. This is especially true in service intensive industries, where visibility is critical for effective planning, communication, and inventory management.”
For all these reasons and more, the entire staff of UltraShipTMS is feeling very blessed and thankful for this industry, this organization and the abundance all of it produces for our customers, our partners, our colleagues, and our families. From all of us to all of you, have a Happy Thanksgiving.