Commerce Express Weekly Road Map:
July 23rd, 2024
Keeping you informed on the latest news/insights in our industry.
Forecasting Retail Surge in July: Insights Into Trucking Economy Shifts for 2024
The anticipated sales growth for retailers this month is largely influenced by the Fourth of July holiday and Prime day event, which both occurred earlier this month.
According to Motive’s Big Box Retail Index, June witnessed a notable uptick in retailer restocking, with warehouse truck visits increasing by 10.8% compared to May and rising by 16% compared to the previous year. This surge in restocking activity is in line with seasonal trends but significantly exceeds historical rates, as indicted by Motive’s report.
Breaking down the data by sector, department stores, apparel, and electronics stores experienced a substantial 32.9% year-over-year increase in restocking activities in June. Home improvement stores followed closely with a 24.4% year-over-year rise. Additionally, brick-and-mortar stores are gaining momentum this year, per Motives insights.
In their June economic report, Motive said that reduced freight rates in the trucking industry have enabled retailers to replenish products promptly to meet customer demand.
Commerce Blog
Discover the strategic importance of U.S. – Mexico trade in our latest blog. We highlight Mexico’s role as America’s top trading partner, valued at over $670 billion in 2023, this post underscores the growing ties between these nations.
For supply chain professionals, navigating cross-border shipping complexities is akin to planning a vacation – requiring meticulous preparation and expertise. From the necessity of customs brokers to essential documentation like BOLs and commercial invoices, every detail is crucial to avoid penalties and delays.
“In the realm of cross-border transportation, shippers ought to respect the rules of the trade, otherwise they are putting themselves at higher risk of delays and penalties. While it’s certainly not limited to these items, the following are necessary boxes to check prior to a shipment…”
Tech Outage: A global IT outage occurred early in the morning last Friday, impacting many companies, individuals, airlines, and beyond. Important to note that this outage was not due to cybersecurity reasons but instead a simple update rollout from CloudStrike.
In the shipping realm… this outage mainly impacted air freight, with no notable outages reported regarding rail/ocean freight. Some reports did state some trucking stakeholders experienced some impacts
Labor: Contract deadline is inching closer (Sept. 30th) as negotiations between the International Longshoremen’s Association and United States Maritime Alliance (USMX) are still far apart. Union President Daggett said the ILA will not seek to extend their current contract or look for assistance from outside parties to get involved in their negotiations.
Legislation: Implementation of a speed limiter rule is being pushed until May 2025, per the U.S. DOT. The new regulation would mandate the installation of speed limiters on trucks, buses, and other vehicles weighing 26,000 pounds or greater.
Diesel Update: This week the average price of diesel decreased 4.7 cents. Making the average diesel price $3.779, per the U.S. EIA.
Intermodal: Regarding the TCRC and CN/CPKC bargaining negotiations.. A ruling from the Canada Industrial Relations Board is expected by August 9th. The CIRB is deciding whether some critical shipments should be required to continue even in the event of a strike. The rail union has been operating without a contract since December 31st.
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