Jeff Greenwell, Managing Director of Strategic Accounts, recounts June Market as nonessential businesses begin to reopen.
THE REOPENING OF STATES INDICATES SLIGHT DROP IN UNEMPLOYMENT AND SLIGHT RISE IN RETAIL SALES
June indicates a slight rebound in market as states begin to reopen and some nonessential workers return to work. U.S. unemployment rate has dropped to 13.3% as of mid-June, with jobless claims – currently at two million – continuing to ease. Industrial production is down 15.3%, however retail sales are up 17.7% as stores and restaurants begin to open to the public, with limited capacity.
The Pricing Manager’s Index (PMI) at 39.8 is still contracting but at a slower pace. Consumer confidence continues to increase over the past three months, currently at 78.9. To date, market is slowly moving toward pre-COVID numbers.
INDEX SHOWS NEARING LOW END OF RECOVERY STAGE
Tender volume continues to hold steady over 11,000 in the month of June, with tender rejections at 7.48% to date and rising. FTR Truck Utilization is in the low 80% reflecting a tightening in capacity. Spot freight is up 79.6% over last month, while spot rates are mixed.
Ocean rates are currently on the rise, indicating increased port activity in the upcoming weeks. FTR’s COVID-19 Truck Freight Recover Index models market demand entering the low end of the recovery stage.
BEST PRACTICE BY BNSF LOGISTICS
As states begin to reopen and COVID-19 cases are being monitored, the market will continue to fluctuate daily. BNSF Logistics recognizes that each industry’s plan to reopen is situational. We will continue working with our customers and carriers to create the best possible solutions to meet their business needs.
Visit our COVID-19 Carrier Resources page for additional information to help you operate your business successfully.
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