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US trucking employment rises, reversing five-month decline
THE US economy has created 255,000 jobs in July, a higher number than expected, and although trucking employment has declined since 2015, it is still slightly above its pre-recession peak.
With the US freight shipping picking up in June and July, for-hire trucking companies have begun hiring again, reversing a five-month decline in trucking employment.
For-hire trucking companies added 1,700 jobs in July, after losing 11,500 since January, Labour Department data show.
The uptick in trucking jobs is a sign the trucking market may have hit bottom after freight volumes, truck rates and revenue slipped in the first half and now is stabilising. Less-than-truckload and truckload carriers reported higher freight volumes in June and July, the IHS Media reported.
The decrease in trucking employment for five straight months in the first half of 2016 coincided with a widespread drop in freight demand and trucking rates that was evident in the truckload spot market and in the earnings reports of publicly owned trucking companies.
Truckload spot market capacity got a bit tighter in June, and pricing climbed higher, as a seasonal increase in freight volumes, coupled with the produce season and a nationwide roadside truck inspection programme, filled more trailers. Truckload spot rates are still rising in July, though they remain below levels from a year ago, according to data from DAT Solutions.
The number of available loads on the spot market rose 3.5 per cent in the last week of July. Excluding fuel surcharges, the monthly average van spot rate rose from US$1.41 to $1.43 per mile. That's unusual in that June typically experiences stronger demand than July, DAT Solutions said.
The load-matching company also noted a five per cent drop in the number of dry van tractor-trailers posted to its load board in late July, although the number of shipments posted rose six per cent. That's evidence capacity tightened, from preceding months if not year on year.
Weak freight demand, in part attributed to high inventories, has kept truck capacity loose and reversed strong price increases of the past few years. Trucking companies, especially larger ones such as Swift Transportation and Landstar Systems, are actively suppressing capacity.
The JOC Truckload Capacity Index dropped from 88.4 in the first quarter of 2016 to 87.6 in the second quarter, and was down from an eight-year peak of 90.4 in the third quarter of 2015. That indicates large carriers are pulling back capacity, though it's harder to cut capacity than to build it.
More freight to haul, however, means more drivers are needed behind the wheel. Continued improvement in the US economy could put trucking employment numbers back on a growth track, especially as the peak pre-holiday shipping season approaches this fall.
Trucking employment increased from July to August in five of the last six years of economic recovery.
With the US freight shipping picking up in June and July, for-hire trucking companies have begun hiring again, reversing a five-month decline in trucking employment.
For-hire trucking companies added 1,700 jobs in July, after losing 11,500 since January, Labour Department data show.
The uptick in trucking jobs is a sign the trucking market may have hit bottom after freight volumes, truck rates and revenue slipped in the first half and now is stabilising. Less-than-truckload and truckload carriers reported higher freight volumes in June and July, the IHS Media reported.
The decrease in trucking employment for five straight months in the first half of 2016 coincided with a widespread drop in freight demand and trucking rates that was evident in the truckload spot market and in the earnings reports of publicly owned trucking companies.
Truckload spot market capacity got a bit tighter in June, and pricing climbed higher, as a seasonal increase in freight volumes, coupled with the produce season and a nationwide roadside truck inspection programme, filled more trailers. Truckload spot rates are still rising in July, though they remain below levels from a year ago, according to data from DAT Solutions.
The number of available loads on the spot market rose 3.5 per cent in the last week of July. Excluding fuel surcharges, the monthly average van spot rate rose from US$1.41 to $1.43 per mile. That's unusual in that June typically experiences stronger demand than July, DAT Solutions said.
The load-matching company also noted a five per cent drop in the number of dry van tractor-trailers posted to its load board in late July, although the number of shipments posted rose six per cent. That's evidence capacity tightened, from preceding months if not year on year.
Weak freight demand, in part attributed to high inventories, has kept truck capacity loose and reversed strong price increases of the past few years. Trucking companies, especially larger ones such as Swift Transportation and Landstar Systems, are actively suppressing capacity.
The JOC Truckload Capacity Index dropped from 88.4 in the first quarter of 2016 to 87.6 in the second quarter, and was down from an eight-year peak of 90.4 in the third quarter of 2015. That indicates large carriers are pulling back capacity, though it's harder to cut capacity than to build it.
More freight to haul, however, means more drivers are needed behind the wheel. Continued improvement in the US economy could put trucking employment numbers back on a growth track, especially as the peak pre-holiday shipping season approaches this fall.
Trucking employment increased from July to August in five of the last six years of economic recovery.
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