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Supply
Chain by the Numbers |
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- Feb. 26, 2015 -
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Agreement at West Coast Won't Reduce Backlog Anytime Soon; Robots May be Killing Job Creation; Oil Inventories are Surging, Sure to Keep Prices Low; ATA Freight Index Hits All-Time High |
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31 |
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135.7
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That was the level of the American Trucking Associations' Freight Tonnage Index in January - an all-time record high. The 6.6% increase versus 2013 was the largest year-over-year gain in more than a year. ATA recently revised its seasonally adjusted index going back five years
as part of the association's annual revision. For all of 2014, truck
tonnage was up 3.7%, slightly better than the 3.4% originally reported. The baseline year is 2000, meaning January freight tonnage was more than 35% above average levels in that year, after falling to just barely above the 100 baseline level during the Great Recession. The modest but consistent volume gains combined with continued carrier discipline in terms of tractor counts - helped by the driver shortage - means the supply-demand balance remains in the carriers' favor, sending rates higher.
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425.6 Million |
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That was how many barrels of oil the US had in storage last week, according to the Energy Information Administration (EIA). That is the highest level in at least 80 years, according to Bloomberg. It is also more than 20% higher than the five-year average. All that means a sharp jump back up in oil prices seems highly unlikely, as supply continues to well exceed demand. The buildup of supply has been "colossal" and is responsible for oil prices falling this week after a brief rally, said Thomas Finlon, director of Energy Analytics Group. Meanwhile, the U.S. is pumping oil at a faster pace than any time since 1972, despite the declining prices that were thought to be falling below the cost of US production. This continues to be a very interesting scenario. |
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