President Barack Obama and New Jersey Gov. Chris Christie talk with citizens who are recovering from Hurricane Sandy, while surveying storm damage in Brigantine, N.J. (Official White House Photo by Pete Souza)
Hurricane Sandy hit a region that’s both densely populated and important economically. According to IHS Global Insight, the initial estimate of economic losses are in the $30-$50 billion range. However, some trucking companies may see a boost in both the near term and longer term.
The loss of economic activity will have a negative impact on the fourth quarter real (i.e., inflation adjusted) GDP reading — possibly by 0.6 percentage points, according to Bob Costello, chief economist at the American Trucking Associations.
However, he noted in a special economic bulletin for ATA members, there are industries and companies that lose and ones that benefit from natural disasters.
During the rebuilding phase, construction companies and makers of construction materials will benefit, as will the flatbed carriers hauling construction freight related to rebuilding.
He also says fleets are expected to see an increase in activity in the coming weeks and months during the clean-up and rebuilding phases. Dry van carriers will likely see a boost in freight from retailers replenishing store shelves that were depleted in the days before the hurricane, but of course these fleets saw a lull in freight in the Mid-Atlantic and Northeast during the last few days.
According to FTR Senior Consultant Noel Perry, the initial estimated loss of $140 million per day the trucking industry will suffer from downtime associated with Super Storm Sandy will ultimately be recouped because of associated resupply and rebuilding truck freight demands.
Perry’s per day estimate of loss revenue is based on 20% of the industry not moving freight because of the storm and its aftermath.
“While some fleets will surely lose revenue during the initial phases of the latest disaster, storms like Sandy create new demand later,” explained Perry. “Retail outlets need immediate resupply that only trucking’s time-sensitive character can accommodate. Plus storm damage needs to be fixed. That creates longer term additional freight tonnage. While the storm is devastating to many, the trucking industry will see mostly positive effects.”
A University of Memphis economist agrees that cataclysmic weather in the Northeast could provide a balm for a sluggish economy.
Dr. John Gnuschke, director of the Sparks Bureau of Business and Economic Research at U of M, told the sixth annual Freight Conference on Tuesday that recovery from the tropical storm could well boost the nation’s economic numbers.
Gnuschke was filling in for Costello, who canceled an appearance at the Intermodal Freight Transportation Institute meeting because of storm-related flight outages in the Northeast.
Because of “the great storm Sandy,” Gnuschke said, “we’re going to make people spend more money than they ever dreamed of spending” to repair damage to buildings and infrastructure, purchase emergency relief supplies and other spending.
Printer Friendly Version
Email This Story
RSS
Economy: Related News
11/2/2012 – Losses to Trucking from Sandy Will Be Recouped in Future
Hurricane Sandy hit a region that’s both densely populated and important economically. According to IHS Global Insight, the initial estimate of economic losses are in the $30-$50 billion range. However, some trucking companies may see a boost in both the near term and longer term….
More
10/29/2012 – Used Truck Market Suffers Weak Performance in September
September’s weak performance all but wiped out the gains that had been made in the used truck market the prior three months,…
More
10/25/2012 – Trailer Orders Gain Strength in September
Net orders for trailers jumped 11% month-over-month in September, rising to 16,990 units. That is a seasonally adjusted annual rate of 224,800 units….
More
10/24/2012 – ATA Truck Tonnage Index Rose 0.4% in September
The American Trucking Associations’ For-Hire Truck Tonnage Index increased 0.4% in September after falling 0.9% in August….
More
10/15/2012 – Freight Shipments Fell 0.6% in August from July
The amount of freight carried by the for-hire transportation industry fell 0.6% in August from July, declining after a one-month rise.
This information is according to the U.S. Department of Transportation’s Bureau of Transportation Statistics’ Freight Transportation Services Index….
More
10/15/2012 – DAT Freight Index Softened in September
The DAT North American Freight Index reports a softer spot market in September. The seasonal decline in overall freight volume was attributed to a reduction in flatbed and reefer freight availability.
Both equipment types experienced a decline month-over-month. However, while flatbed volumes were down compared to the prior year by 13%, reefer freight volumes rose by 1.1% when compared with September 2011. …
More
10/10/2012 – Economic Panel Sees Mixed Forecast for Trucking, Economy
LAS VEGAS – A panel discussion on the economy indicated that the economy and trucking will continue to see slow but steady growth of around 2% GDP through 2013, barring something like a total financial crisis in the Eurozone or the unlikely aspect of Congress driving the country over the “financial cliff” looming at the end of the year….
More
10/10/2012 – Diesel Prices Up Slightly
The slow downward trend of diesel and gasoline prices seems to have halted this week….
More
10/9/2012 – Class 8 Preliminary Net Orders Remain Soft in September
North America heavy-duty GVW Class 8 commercial vehicle preliminary net orders for September remained soft, according to the ACT Research….
More
10/5/2012 – FTR Trucking Conditions Index Moves Higher in August
FTR expects trucking conditions to improve in 2013, thanks to modestly better economics and a strong increase in capacity utilization stemming from added constraints on trucking from federal regulations taking effect in mid-year….
More
10/3/2012 – Survey Finds Logistics Companies Weathered Tepid Economic Conditions in 2011
In spite of a slow economic climate, 74% of North American logistics companies surveyed achieved or exceeded revenue projections in 2011, according to the 19th Annual Survey of Third-Party Logistics Providers. However, companies that failed to meet their financial projections were up sharply from 14% in 2010 to 26% in 2011….
More
10/3/2012 – Few Carriers Expect to Add Much Capacity in Next Year
The number of carriers who expect to add little or no capacity in the next 12 months has remained fairly constant at around 70-74% for the last five quarters, according to Transport Capital Partners’ Third Quarter 2012 Business Expectations survey….
More
10/2/2012 – ACT Research: Used Truck Market is Still Robust, Trailer Orders Improve
In August, ACT Research reports, pricing for used trucks continued to climb along with net orders for trailers….
More
9/26/2012 – Tonnage Index Down 0.9% in August, up Modestly YoY
The American Trucking Associations’ tonnage index dropped fell in August compared to September but showed modest growth over last year….
More
9/26/2012 – Economy Shuffles Along
ORLANDO, Fla. – Unless we go over the “fiscal cliff,” the U.S. economy should continue to grow, but at a very modest rate, said Bob Costello, chief economist and vice president of the American Trucking Associations….
More
9/21/2012 – Class 8 Demand Remains Soft in August
Weakness at the front end of the demand cycle for heavy duty commercial vehicles persisted into August, although underlying fundamentals are healthy, according to ACT Research Co….
More
9/17/2012 – FTR Reports Shippers Conditions Index Starts Expected Decline in July
FTR Associates’ Shippers Conditions Index for July fell to a reading of -4.5, starting the expected steady decline as shippers and carriers feel the impact of increased regulatory drag heading into 2013….
More
9/17/2012 – Survey: Fewer Carriers Expect Volume Growth
Results from Transport Capital Partners’ Third Quarter 2012 Business Expectations Survey show that much like 2011, the optimism expressed in the first quarter was tempered by the reality that the economy was likely to remain questionable for the year ahead….
More
9/14/2012 – July Freight Shipments up 0.1% Month-over-Month
The amount of freight carried by the for-hire transportation industry rose 0.1% in July from June, rising after a one-month decline, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics’ Freight Transportation Services Index….
More
9/14/2012 – DAT Freight Index for August up Over Last Year
TransCore’s DAT Freight Index for August outpaced year-ago levels by 8.4%. This is the sixth time in 2012 volume has exceeded prior year levels….
More
9/13/2012 – Indices from Cass Show Truckload Rates Steady, Intermodal is up
Recent information from partners Cass Information Systems Inc. and Avondale Partners LLC indicates that truckload rates are holding steady, while intermodal rates saw a month-to-month gain….
More
9/12/2012 – Navistar Shutting Down Workhorse as Part of Cost-Cutting
CORRECTED — Workhorse Custom Chassis is going out of business and is due to shut down in October, though Navistar International Corp., its owner since 2005, is saying little about it….
More
9/11/2012 – Retail Container Imports to Increase 8.5% in September;
Strong Holiday Numbers Expected
Import cargo volume at the nation’s major retail container ports is expected to increase 8.5% in September compared with the same month last year…
More
9/11/2012 – Hikes in Diesel, Gasoline Ease
The recent trend at the pump has seen the continual upward climb of both gasoline and diesel prices at a steady rate, but this week the trend seemed to be slowing….
More
9/7/2012 – Class 8 Orders Rebound in August
FTR Associates has released preliminary data showing August Class 8 truck net orders at 15,935 units, up 27% from July….
More
9/6/2012 – Despite Slow Growth, Capacity Balance Means Trucking’s Doing OK
The economy is expected to continue to grow slowly amidst a variety of headwinds, but because the trucking industry has not been adding back capacity cut or lost during the recession, pricing trends are largely positive, with flatbed, tanker and reefer business leading the way, according to transportation analysts at Stifel Nicolaus,…
More
9/6/2012 – Pricing for Sleeper Tractors Unexpectedly Up in July
The price for used sleeper tractors rose in July, both on a month-to-month and year-over-year basis, reports the American Truck Dealers Commercial Truck Guide….
More
9/6/2012 – Diesel Exhaust Fluid Pump Prices Increase
The price of diesel exhaust fluid at the pump jumped in August while tote prices remained level, according to the latest DEF Tracker price update from Integer Research….
More
8/30/2012 – June Surface Trade with Canada, Mexico Up 6.6% Over 2011
Trade using surface transportation between the United States and its North American Free Trade Agreement partners, Canada and Mexico, was 6.6% higher in June 2012 than in June 2011, totaling $82.6 billion…
More
8/29/2012 – Used Truck Comparisons Up Month-Over-Month in July
In what may be an unprecedented event, all the month-over-month comparisons – volume, price, miles, and age – for all weight groups of used trucks improved in July….
More
8/24/2012 – Trailer Orders Weak in July
July is seasonally the weakest order month for the trailer industry, and the 14,500 new orders booked for the month confirmed that pattern….
More
8/23/2012 – Class 8 Orders Still Weak in July
The Class 8 market continued to experience weak orders and falling backlogs through the month of July, as build rates again exceeded the pace of incoming orders….
More
8/22/2012 – ATA Truck Tonnage Unchanged in July
The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index was unchanged in July after increasing 1.1% in June….
More
8/16/2012 – FTR Reports Shippers Conditions Index Remains at Near Neutral
FTR Associates’ Shippers Conditions Index for June was basically unchanged from the previous month and remains in near neutral territory at a reading of -1.8….
More
8/14/2012 – Spot Freight Index Defies Economic News
TransCore’s DAT Freight Index, which monitors the spot freight market, continues this year’s trend of record same-month freight volumes and a double-digit increase on a year-over-year basis.
July marked the fifth instance of a same-month record in 2012 and the DAT Index outpaced July 2011 levels by 12%, but lagged June 2012 by 20%, says TransCore. …
More
8/9/2012 – FTR’s Trucking Conditions Index Continues Downward in June
FTR’s Trucking Conditions Index for June continued its downward trend, falling a half point from May to a reading of 4.5, weaker than initial expectations, according to the transportation forecasting firm….
More
8/9/2012 – Federal Freight Numbers Drop Slightly in June
The amount of freight carried by the for-hire transportation industry fell 0.1% in June from May, following no change in the index from April to May, according to the U.S. Department of Transportation Freight Transportation Services Index….
More
8/2/2012 – Used Truck Industry Sends Mixed Signals
June used truck sales grew 8% over May, but lagged June 2011 and the first six months of 2011, while pricing appears to be slowing a little more rapidly than was previously expected….
More
7/27/2012 – ATA Truck Tonnage Jumped 1.2% in June
The American Trucking Associations’ June tonnage index had its largest month-to-month gain so far this year, thanks to a larger-than-estimated loss the previous month. Tonnage is still up year over year….
More
7/27/2012 – Durable Goods Orders, Shipments Up, but Plane Orders Skew Numbers
Durable goods orders rose more than expected last month, by 1.6%, but it was largely due to a surge in aircraft orders. These long-lasting manufactured products, such as washers and dryers, toasters and aircraft, make up a major source of trucking freight….
More
7/27/2012 – ATD: Mixed New-Truck Climate Not Affecting Used-Truck Pricing
Used-truck pricing stayed high in June, even as new-truck orders fell, according to Chris Visser, senior analyst for American Truck Dealers Official Commercial Truck Guide….
More
7/24/2012 – Class 8 Orders Weak in June; Classes 5-7 Consistent
In the Class 8 market, weak orders persisted through June, while activity in the Classes 5-7 markets remained generally unchanged, according to the State of the Industry report released by ACT Research Co. The report covers Class 5 through 8 vehicles for the North American market….
More
7/19/2012 – Housing Starts Offer Glimmer Of Hope
The nation’s beleaguered housing industry, whose health affects some trucking operations greatly, got some of its best news in quite a while Wednesday , but also shows the industry has a long way to go before seeing a full recovery….
More
7/16/2012 – June Spot Freight Volume Increases Year-over-Year, Dips Slightly from May
June spot freight numbers dropped from May, according to TransCore, despite setting a same-month record….
More
7/13/2012 – Freight Volumes Fall Flat as Economy Stalls
North American freight volumes continues to follow the path of general malaise that the economy is experiencing, according to the Cass Freight Index, which measures overall North American freight volumes and expenditures….
More
7/12/2012 – TCP: Carriers Expect Small Increases in Driver Wages
Carriers anticipate driver wages to increase in the next 12 months, but only incrementally, according to results from Transport Capital Partners’ Second Quarter 2012 Business Expectations Survey. …
More
7/12/2012 – Freight Shipment Index Unchanged in May from April
The amount of freight carried by the for-hire transportation industry was unchanged in May from April, after a one-month rise, according to the Freight Transportation Services Index from the DOT’s Bureau of Transportation Statistics….
More
7/11/2012 – Fleets Manage Costs as Freight Hauling Demand Grows
Transportation company chief financial officers across the U.S. are seeing more business opportunities despite rising costs and regulatory challenges, according to a recent survey by GE Capital. …
More
7/10/2012 – FTR’s Trucking Conditions Index Falls Significantly in May
FTR’s Trucking Conditions Index for May fell markedly from the previous month to a reading of 5.1, down nearly four points, as reported in the July 2012 Trucking Update. April’s strong performance was not sustained, and the TCI has dropped to the lowest level in six months….
More
7/10/2012 – ATA Forecast: Trucking Will See Gains Through 2023
After a significant dip during the recession and a mild economic recovery, the U.S. freight economy, particularly for trucking, is projected to grow significantly in the years ahead, according to American Trucking Associations’ U.S. Freight Transportation Forecast to 2023….
More
7/9/2012 – Trucking Adds 2,000 Jobs in June
Trucking added 2,000 for-hire jobs in June after adding 7,300 jobs in May. June numbers are up 3.1% from one year ago, according to data from the U.S. Bureau of Labor Statistics. …
More
7/6/2012 – Class 8 Preliminary Net Orders Remain Soft; Classes 5-7 Fall Below Trend
North American Class 8 commercial vehicle preliminary net orders for June remained soft, according to two major industry research firms.More
7/5/2012 – May Used Class 8 Truck Sales Slide, Dealer Inventories Shrink
May showed a continued decline in the availability of low-mileage used heavy-duty trucks, according to analysts with Great American Group LLC.
According to the American Truck Dealers and Used Truck associations, the average mileage for May was 560,000 miles, which is a historic high compared to a year ago, when the average mileage was 514,000 miles….
More
6/28/2012 – Carriers Reluctant to Add Capacity as Shippers Seek Longer Term Options
Carriers are still reluctant to add capacity, according to results from Transport Capital Partners’ Second Quarter 2012 Business Expectations Survey. Seventy-one percent of carriers expect to add little or no capacity, a slight increase from last quarter’s 65%….
More
6/27/2012 – April Surface Trade with Canada, Mexico Up 8.2% Year over Year
Trade using surface transportation between the U.S. and its North American Free Trade Agreement partners, Canada and Mexico, was 8.2% higher in April 2012 than in April 2011, totaling $79.8 billion, according to the Bureau of Transportation Statistics of the U.S. Department of Transportation. …
More
6/27/2012 – Class 8 Used Truck Prices Should Continue to Appreciate in 2012
The average retail selling price for a used Class 8 truck dropped to $48,643 in May, down 6% month over month but 3% above the average price in May 2011. On a year-to-date basis, prices remained 13% above last year’s pace, according to ACT Research Co….
More
6/26/2012 – Trailer Orders Fall in May
Trailer industry orders softened in May, reports ACT Research Co. Given that orders in May have fallen below April volumes in 10 of the past 12 years, the decline was anticipated….
More
6/22/2012 – Low Confidence Causes Weak Orders, Says ACT Research
In an environment that should support healthy demand, ACT Research says a lack of confidence by the credit-buyer side of the market is at the root of the three-month downturn experienced in the Class 8 market….
More
6/20/2012 – Tonnage Down 0.7% Month Over Month, Up 4.1% Year Over Year
The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index dropped 0.7% in May after falling 1.1% in April. …
More
6/19/2012 – Truckable Economic Activity Up in 1Q 2012
Truckable Economic Activity, a trucking-specific economic indicator developed by MacKay Company, posted another advance in the first quarter of 2012, paced by gains in four of its five components. …
More
6/15/2012 – U.S. Supply Chain and Logistics Industry Rebound Led by Trucking, Rail
Total U.S. business logistics costs in 2011 rose to $1.28 trillion, a 6.6% increase from the previous year and accounting for 8.5% of the U.S. gross domestic product, according to the Council of Supply Chain Management Professionals’ 23rd Annual “State of Logistics Report,” presented by Penske Logistics….
More
6/15/2012 – Used Prices on Class 8 Sleeper Tractors Continue to Rise
Retail prices for Class 8 sleeper tractors continued to rise from January through April, despite average mileage near record highs, says Chris Visser, senior analyst with the American Truck Dealers’ Commercial Truck Guide, a division of the National Automobile Dealers Association….
More
6/14/2012 – Freight Shipments Up 0.2% from March to April
The amount of freight carried by the for-hire transportation industry rose 0.2% in April from March, rising after a one-month decline, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics’ Freight Transportation Services Index….
More
6/14/2012 – Truckload Driver Turnover Pushes Higher in First Quarter
After a one quarter reprieve, the annualized turnover rate for large truckload fleets rose slightly in the first quarter of 2012 while small truckload fleets saw a tremendous surge in turnover, according to American Trucking Associations’ Chief Economist Bob Costello….
More
6/13/2012 – ACT Lowers 2012 Class 8 Build Forecast
ACT Research lowered its Class 8 build expectations for the second half of the year due to continuing softness in demand. Expectations for medium-duty build were unchanged….
More
6/11/2012 – FTR’s Trucking Conditions Index Moves Upward
FTR’s Trucking Conditions Index for April moved significantly higher from the previous month, climbing 2.7 points to a favorable reading of 9.1….
More
6/11/2012 – Polk: First Quarter Used Commercial Vehicle Registrations Fall
Used Class 3-8 commercial vehicle registrations fell 26.7% from the same period last year, to 164,024 units, according to a recent Polk report….
More
6/7/2012 – Economist Offers Mixed News at Vision Conference
The economy is growing, albeit not enough to put a major dent in unemployment, says one economist, who also believes international events may have more influence on the U.S. economy than President Obama….
More
6/6/2012 – Truck Orders up Moderately in May
After four months of decline, North American Class 8 truck orders took a modest upturn in May. Order activity is not where many hoped it would be at this point in the recovery, but analysts say the industry is still relatively healthy….
More
6/4/2012 – Trucking Adds 7,300 Jobs in May, National Job Growth Stalls
The trucking industry added 7,300 for-hire trucking jobs in May, an increase from 1.3 million jobs in April and a 3.4% increase from a year ago….
More
5/31/2012 – March Surface Trade with Canada and Mexico Exceeds $85 Billion for First Time
Surface trade between the U.S. and its North American Free Trade Agreement partners, Canada and Mexico, was 6.2% higher in March 2012 than in March 2011, totaling $85.8 billion, according to the Bureau of Transportation Statistics of the U.S. Department of Transportation….
More
5/30/2012 – New Vehicle Registrations Up 26% from 1Q 2011
New commercial vehicle registrations for Class 3-8 vehicles for the first quarter of 2012 were up 26.6% to 129,755 units from the 102,521 units registered during the first quarter of 2011….
More
5/30/2012 – Class 8 Used Truck Volumes Down, Pricing Up in April
April saw a turnaround in the trend of the prior two months in the used Class 8 truck market as volumes sank and pricing rose, according to State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research Co….
More
5/30/2012 – Canadian Government Legislates End to Canadian Pacific Strike
As the labor dispute at Canadian Pacific Railway enters its eighth day, Canadian federal labor minister, Lisa Raitt has tabled back-to-work legislation that could force striking workers back to their jobs as early as Thursday….
More
5/25/2012 – Housing, Manufacturing Numbers Good News for Trucking
Two key economic indicators that affect trucking freight, housing starts and industrial production, exceeded expectations in April….
More
5/23/2012 – ACT Research: Fleets Return to Trailer Orderboard in April
Fleets started ordering more trailers in April, following recent lackluster performance, although the gains were not universal across all trailer categories, according to ACT Research Co.’s State of the Industry: U.S. Trailers. …
More
5/23/2012 – ATA Truck Tonnage Falls 1.1%
The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index fell 1.1% in April after rising 0.6% in March….
More
5/22/2012 – Class 8 Backlog Falls in April; Economic Activity Will Expand Moderately
Softer orders and a continuation of strong build caused the Class 8 backlog to fall nearly 8,000 units to 106,407 in April, according to ACT Research. …
More
5/21/2012 – Spot Freight Index Sets Record in April
In April, the TransCore DAT North American Freight Index achieved the highest volume in a single month since the Index was established in 1996. On a year-over-year basis, volume increased 17% and rose 3.5% compared to March volume….
More
5/18/2012 – Raw Materials, Volatile Demand Hurt Supplier Outlook
The cost of raw materials, weak sales and increasing international competition are among the major concerns of heavy-duty suppliers, according to a quarterly “Supplier Barometer” survey conducted by the Heavy Duty Manufacturers Association….
More
5/16/2012 – FTR: Trucking Industry Seeing Relatively Good Recovery
The trucking industry, at least for the short term, is experiencing good recovery, according to FTR Associates Senior Consultant Noel Perry. The recovery has maybe a year and a half or two years to go, he said during FTR’s “State of Freight” webinar….
More
5/15/2012 – FTR Shippers Conditions Index Steadies in March
FTR Associates’ Shippers Conditions Index for March did not show much change from the previous month. The index currently stands at -5.3, representing a moderately unfavorable condition for shippers that is expected to persist until the onset of the busy fall shipping season….
More
5/10/2012 – Economic Growth to Continue Throughout 2012
Economic growth is expected to continue in the United States throughout the remainder of 2012, say the nation’s purchasing and supply executives in their spring 2012 Semiannual Economic Forecast….
More
5/10/2012 – Freight Shipments Fell 0.8% in March from February
After a one-month increase, the amount of freight carried by the for-hire transportation industry fell 0.8% in March from February, reports the Bureau of Transportation Statistics’ Freight Transportation Services Index. The March level was 16% above the April 2009 low during the recession….
More
5/9/2012 – Increases in Retail Container Traffic Expected Through Back-to-School Season
Import cargo volume at the nation’s major retail container ports will be flat in May compared with the same month last year, but is expected to see solid year-over-year increases through this summer and the back-to-school season, according to the monthly Global Port Tracker…
More
5/9/2012 – Freight Volumes Show Slow But Continued Growth
The freight market continued to grow in April at the slow pace we have experienced for most of the recovery, with North American freight volumes rising 1.9% from March to April, according to the Cass Freight Index….
More
5/9/2012 – Trucking Jobs Grow by 1,800 in April
For-hire trucking companies added 1,800 payroll jobs in April, according to the latest estimates released from the Bureau of Labor Statistics. This comes after a loss of 2,500 in jobs in March, which the BLS adjusted after initially estimating a loss of 1,900 jobs….
More