Although the transportation market cooled in July from a seasonally stronger June, it remained very tight, according to data from a monthly survey of supply chain professionals. Key transportation metrics in the Logistics Managers' Index showed mixed results, with capacity falling faster while pricing grew at a slightly slower pace.
The index is a diffusion index in which a reading above 50 indicates expansion, while one below 50 signals contraction. The LMI displayed a 28.4 reading for transportation capacity in July. Sentiment around capacity declined at a rate that was 2.4 percentage points faster than June, tying the second-fastest contraction rate captured by the 10-year-old dataset. (The record-low reading was 23.8 in September 2020.)
A push by regulatory authorities to remove unsafe drivers has significantly tightened supply in the truckload market. Further, most publicly traded carriers aren't adding equipment, instead making better use of what they have.
Recent initiatives to improve **** et utilization were apparent in second-quarter results.
Omaha, Nebraska-based Werner Enterprises (NASDAQ: WERN) announced an official restructuring of its one-way TL fleet in February. The plan involved exiting non-profitable accounts and repurposing or disposing under-utilized tractors. Revenue per truck per week (excluding fuel surcharges) jumped 28% year over year in the latest quarter, as miles per truck were up 16% and revenue per total mile increased 10%. It expects rate per mile to increase by 10% to 13% y/y in the third quarter.
#index #year
The index is a diffusion index in which a reading above 50 indicates expansion, while one below 50 signals contraction. The LMI displayed a 28.4 reading for transportation capacity in July. Sentiment around capacity declined at a rate that was 2.4 percentage points faster than June, tying the second-fastest contraction rate captured by the 10-year-old dataset. (The record-low reading was 23.8 in September 2020.)
A push by regulatory authorities to remove unsafe drivers has significantly tightened supply in the truckload market. Further, most publicly traded carriers aren't adding equipment, instead making better use of what they have.
Recent initiatives to improve **** et utilization were apparent in second-quarter results.
Omaha, Nebraska-based Werner Enterprises (NASDAQ: WERN) announced an official restructuring of its one-way TL fleet in February. The plan involved exiting non-profitable accounts and repurposing or disposing under-utilized tractors. Revenue per truck per week (excluding fuel surcharges) jumped 28% year over year in the latest quarter, as miles per truck were up 16% and revenue per total mile increased 10%. It expects rate per mile to increase by 10% to 13% y/y in the third quarter.
#index #year
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