Most U.S. economic data points to a healthy economy. Unemployment has fallen to 3.9%, one of its lowest levels in the last decade, and the Purchasing Manager’s Index (PMI), measured by the Institute for Supply Management, reached 58.1% last month. Any figure above 50% indicates an expansion in the manufacturing economy.
For the logistics and transportation industry in particular, business is booming with high demand for logistics and freight services. With strong business growth, it follows logically why the industry views the economy and the future outlook in a positive light.
“It’s completely a carrier’s market right now,” Josh Brogan, vice president at A.T. Kearney, told Supply Chain Dive. “Some of our shippers are complaining about odd situations where carriers are basically refusing to bid on annual tenders and saying ‘we’ll take care of your business but through the spot market.'”
Though July posted a dip in spot market volumes, availability landed higher than many expected and spot market loads are still up 45% year over year, according to DAT data.