Freight volume has been falling for a while now. This is one of the early indication that a recession is looming.
We've been hearing for months that the bottom was in sight and a turn around was right around the corner.
July's numbers brought that hope to an end. Here is the takeaway.
Freight volumes have been on the decline for 19 months now, so the 9% year over year decline is a decline FROM a decline in July 2022.
"The report noted the freight market has been contracting for 19 months and that the duration of the past three downturns was 21 to 28 months."
Link...
www.freightwaves.com
This is not good news for the Transportation and Logistics sector nor the overall economy.
Couple this with the "meltdown" in Trans-Atlantic cargo shipping reported earlier this week...which was the only bright spot in a bleak overall freight picture...
www.freightwaves.com
...as Trans-Pacific shipping was already in a decline that has only slightly recovered by shedding overcapacity...
www.freightwaves.com
...and Air Freight has written off the entire year after 16 months of declining volumes...
www.freightwaves.com
Overall...not a very pretty picture.
We've been hearing for months that the bottom was in sight and a turn around was right around the corner.
July's numbers brought that hope to an end. Here is the takeaway.
Freight volumes have been on the decline for 19 months now, so the 9% year over year decline is a decline FROM a decline in July 2022.
"The report noted the freight market has been contracting for 19 months and that the duration of the past three downturns was 21 to 28 months."
Link...
Freight market staying ‘lower for longer,’ Cass says
Shipment declines accelerated in July while total freight spend remained under pressure.
www.freightwaves.com
This is not good news for the Transportation and Logistics sector nor the overall economy.
Couple this with the "meltdown" in Trans-Atlantic cargo shipping reported earlier this week...which was the only bright spot in a bleak overall freight picture...
Trans-Atlantic shipping suffers ‘meltdown’ as rates hit new low
Spot ocean shipping rates from Europe to the U.S. held up much longer than trans-Pacific rates. Now they’ve sunk to historic lows.
www.freightwaves.com
...as Trans-Pacific shipping was already in a decline that has only slightly recovered by shedding overcapacity...
Ocean carriers steadily losing pricing power in trans-Pacific
Ocean carriers are steadily losing pricing power on the trans-Pacific as China to U.S. demand peaks for the second half of 2023.
www.freightwaves.com
...and Air Freight has written off the entire year after 16 months of declining volumes...
Wait for airfreight recovery could extend deep into 2024
The air cargo sector was banking on a turnaround in market conditions by this fall, but it might have to wait until late next year unless demand unexpectedly revives.
www.freightwaves.com
Overall...not a very pretty picture.
