Transportation TIP List: Week of June 23rd, 2019
This past Friday marked the first official day of summer and the longest day of the year. And as the weather heats up, there’s no shortage of hot topics arising in the transportation industry. This week’s TIP List takes a look at the latest news surrounding the USMCA and the value that a managed transportation service provider can bring to shippers. Dive in below for all of the sizzling industry news!
- The Managed Transportation Services Outlook: A recent market study from ARC Advisory Group about managed transportation services examined the total size of the market, the forecasted growth through 2023, and the leading suppliers across a number of categories including industry, region and customer size.
- Mexico Becomes First Country to Pass USMCA: Last week, Mexico’s Senate passed the USMCA, making it the first country to ratify the new North American trade pact. President López Obrador was confident that the deal would pass, despite President Trump’s recent tariff threats.
- Rising Class 8 Sales in May Signal Demand Alive and Well: S. retail sales of heavy-duty trucks kept up momentum in May, pushing into the 20,000-plus territory for the 10th time over the past year. Sales surged to 24,424, compared with 19,195 in May of 2018.
- Logistics Spending Jumped 11.4% on Strong Economic Growth: According to the recent “State of Logistics Report”, spending on transportation, inventory-carrying costs and other shipping-related expenses as a share of gross domestic product last year reached its highest level since 2014.
- Intermodal Key to Shippers Despite Current Weakness: U.S. shippers anticipate intermodal to be an important component of their supply chains for years to come, despite an expectation that technology will lower truck costs and cause rates to be increasingly competitive to rail.