Transportation TIP List: Week of June 26th, 2016
In anticipation of the Fourth of July, our TIP List celebrates transportation trends making an impact near and far. New drone rules from the FAA and the U.K.’s ‘Brexit’ vote to increasing NAFTA trade growth – the transportation industry is bursting with exciting new developments.
- FAA completes landmark rules for commercial drones: New drone rules from the Federal Aviation Administration limit most small commercial drone operations to daylight hours and require operators to get certified every two years. The rules mark the FAA’s first attempt at a comprehensive plan to ensure the popular remote-controlled aircraft can safely share the skies with commercial craft.
- U.K.’s ‘Brexit’ Vote Changes European Business World: Executives from Europe Inc. woke up last Friday to a new world. British voters chose to leave the European Union, British broadcasters forecast, defying months of pleas from the country’s biggest corporate titans, who wanted to remain in the bloc.
- Gasoline Demand Zooms to Record as Prices at Pump Plummet: U.S. drivers are burning gasoline at a record pace this summer as they take advantage of the lowest prices at the pump in more than a decade. Consumption has risen 3.9% from a year ago, while the average retail price for the motor fuel has tumbled 17.
- Alt fuel engines expected to gain market share over next 5 years: While diesel engines currently make up 98.5 percent of the Class 8 market share in North America, a new report says that dominance will lessen within the next 5 years. The transition will be stoked by impending GHG Phase Two regulations and growth of vertical integration across the supply chain.
- Cass Freight Index Drops 5.8% Year-Over-Year: The Cass Freight Index that primarily measures truck shipments dropped 5.8% year-over-year last month, but it was 1.3% higher than April amid some sequential signs of modestly improving freight conditions. “The current economic outlook is volatile, which has led to slow, uneven growth,” said the report.
- Truck Tonnage Index Up 2.7% in May; Up 5.7% from May 2015: The American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index increased 2.7 percent in May, following a revised 1.7 percent drop during April. “Following two consecutive decreases totaling 6 percent, May was a nice increase in truck tonnage,” said ATA Chief Economist Bob Costello.
- NAFTA trade growth bucks global slowdown, but brings capacity challenges: Cross-border freight volumes are rising in Laredo, Texas, the largest U.S.-Mexican border crossing for trucks, and in Detroit, the largest truck crossing on the Canadian border. Record demand for cars and light trucks in the U.S. and a shift in global shipper supply chain strategies that favors Mexican ports and manufacturing are driving an increase in the volume of goods trucked across the U.S.-Mexico border.
What transportation trends are revolutionizing your business?