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Recovery may not be what it seems

There is still much uncertainty and fear regarding the economic future.
By Rosalyn Wilson, SCMR Blogger
July 27, 2010

Tonnage and carloads carried continues to rise on the strength of the holiday surge. Retailers have banked on returning consumer confidence and spending and orders are up. West coast imports are up and intermodal rail shipments are mirroring the rise and will probably have the best numbers since 2006. Rates for ocean and air are skyrocketing and rates are beginning to inch up in rail and truck.  Trucking bankruptcies in 2010 have right-sized the industry more in line with demand…for now.

Yet on the horizon I hear rumblings of capacity shortages – trucking companies turning down loads because they can’t handle them, shippers unable to find carriers to fit their immediate shipping schedules. The truck driver shortage, especially for experienced drivers, is showing up in all sectors now. The signs in the transportation sector seem to be trending in the right direction, but growth is slow and volatile.  There is still much uncertainty and fear regarding the economic future. Businesses are reluctant to invest or hire new workers and consumers have not shown that they are ready to return to earlier spending patterns.


About the Author

image
Rosalyn Wilson
SCMR Blogger
Rosalyn Wilson is the author of the highly regarded “State of Logistics Report,” which is produced annually by the Council of Supply Chain Management Professionals (CSCMP) and sponsored by Penske Logistics. Rosalyn has over thirty years experience researching and writing about the supply chain industry. She is a Senior Business Analyst at Delcan Corporation, a multi-disciplinary engineering, management, and technology consulting firm. She can be reached directly at .(JavaScript must be enabled to view this email address).

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