14 DC VELOCITY JULY 2019 www.dcvelocity.com
newsworthy
Truckload demand remains in a slump, FTR and DAT figures show
Business conditions for the trucking industry improved
slightly in April, but the overall state of the sector continues
to deteriorate from its precipitous highs of 2018, according
to the freight transportation forecasting and consulting firm
FTR. The Bloomington,
Ind.-based company’s
Trucking Conditions Index
(TCI) had dropped into
negative territory in March
for the first time in “
several years,” and the April
bump did little to change
that, with the index ending
up at -0.64. FTR expects
that the index will remain
in a narrow band of negative
readings through 2019 and
into the 2020 calendar year.
Positive numbers in FTR’s
index mean strong conditions for carriers—and
high freight rates for shippers—while a zero reading
indicates that truck supply
and demand are roughly
in balance. Last year was a
standout year for truckers, with tight capacity conditions
pushing the TCI to a sky-high 15. 41 reading in February
2018. But it has been plummeting ever since. “Not that
long ago, it seemed inconceivable that the good times in
trucking would end, but here we are back down to earth,”
Avery Vise, FTR’s vice president of trucking, said in a
release. “Growth in manufacturing—the most significant
driver of trucking activity—has subsided, and residential
construction remains stag-
nant. However, there are
some near-term positives,
such as lower diesel prices.
Also, carriers are respond-
ing to flagging demand by
ending their hiring spree,
which could set the stage for
firmer capacity utilization
down the road.”
The slump in demand
was also reflected in the
Truckload Freight Volume
Index compiled by freight
marketplace operator DAT
Solutions. DAT reported
that spot-market full-truck-load van loads failed to
meet expectations in May,
declining 12 percent from
April levels. Possible reasons
for the soft market include
uncertainty over trade agreements and slumping imports
from China in addition to record rainfalls, flooding, and
tornadoes that have hampered freight movements in many
parts of the country, Portland, Ore.-based DAT said.
Mutual Trading Co., a Japanese food, beverage, and
restaurant supply specialist, has leased 299,000 square
feet of space in the new Goodman Logistics Center in
El Monte, Calif. The move will allow Mutual Trading
to consolidate five existing facilities into one loca-
tion to improve supply chain efficiency and support
its U.S. growth. … Integrated design-build firm AM
King has completed a large-scale expansion project
for food distributor Cheney Brothers Inc. at the food
company’s Statesville, N.C., distribution center. The
169,000-square-foot cold-storage addition will allow
Cheney Brothers to expand its refrigeration capabilities
in the region. … World Distribution Services (WDS)
will collaborate with real-estate developer Lingerfelt
Commonwealth Partners to renovate a large facility in
Virginia Beach to serve as a warehouse. The $6.2 mil-
lion project, slated for completion in March 2020, will
include 320,000 square feet of warehouse space, with
20,000 square feet of dedicated food-grade space. …
TVH in the Americas, a provider of replacement parts
and accessories for the material handling and industrial
equipment industries, has moved its Harrisburg, Pa.,
distribution operations to a larger 105,000-square-foot
facility in Elizabethtown, Pa. … Averitt Express has
opened a new international distribution center to help
support the growing volume of cargo moving through
Georgia’s Port of Savannah. Located less than 15 miles
from the port, the new location features 44 dock doors
and more than 80,000 square feet of enclosed ware-
housing and distribution space.
ground breakers
