Getting up to speed in logistics involves a slowdown in business … and some bright new developments in finding places to come to a full stop.
The Market’s Brakes are Still On.
If you had a feeling things were still moving slowly in shipping, the latest data backs you up. Analysts have found a continued decline in shipments (both number of shipments and tonnage being shipped) as well as the amount of expenditure for freight.
As of July, Cass Information Systems shows an 8.9% decline in shipments for the month, year over year, while expenditures dropped 24.4%. On the plus side, they found fuel prices dropped even further, down 27% compared to last July.
American Trucking Associations found a 3% decline in truck tonnage year over year, the fifth straight decline in the freight market. The Logistics Managers Index, too, slipped from 60.7 this time last year to 45.4 in July, a slight dip from June’s 45.6. The experts agree that one factor is the massive growth in shipping during the pandemic, which saw two years of massive increases in shipping totaling more than 60%.
DAT Freight & Analytics also sees two bright spots in the market: reefers and flatbeds. The Refrigerated Trucking Volume Index rose 1.2% compared to last year (although fell 3% from June). And the Flatbed TVI increased 3.5% year-over-year (although that’s also down 12.8% from June).
Parking Gets Smarter
The head of the Federal Motor Carrier Safety Administration, Robin Hutcheson, told the National Truck Driving Championships that expanding truckers’ access to parking continues to be a priority.
New federal grants have already led to the development of parking projects in Tennessee and Florida, with more money on the way to create safe rest areas along major freight corridors.
Congress has also taken the matter seriously. This May, the House Transportation and Infrastructure Committee approved $755M to expand truck parking.
Financial services company Finloc 2000, which specializes in freight equipment, is developing an app to allow drivers to find safe places to overnight. A beta version of FinPark is already available on the App Store and Google Play for mobile download, as well as through web browsers.
As many as 10% of all parking spaces go unused every night, while drivers are forced to find unofficial or illegal spaces because they can’t find a place to park. The app uses “predictive route guidance” and is based on a similar project co-founded by Finloc COO Anthony Petitte called TruckPark, which secured 22% of U.S. parking market share before they sold it in 2021.
Though designed with long-haul trucking in mind, the new app is also proving useful for short-haul drivers and fleets looking to store their equipment for 30 days or more, as well as for parking property owners looking to keep their lots filled.
Work with a logistics provider to help you navigate market changes.
Hawkeye is the qualified logistics provider you’ve been looking for to trust with your freight. CONTACT US today to see for yourself why people are choosing us as their provider.
Sources:
https://www.freightwaves.com/news/new-tech-aims-to-address-us-truck-parking-shortage
https://www.ttnews.com/articles/fmcsa-truck-parking-ntdc
https://www.ttnews.com/articles/truck-tonnage-dips-july
https://www.freightwaves.com/news/freight-market-staying-lower-for-longer-cass-says
