Industry Insights
May 2024
By PGL
Welcome to the PGL Industry Insights report for May 2024.
We begin this month’s report with unexpected good news from gulf ports such as Houston, New Orleans and Mobile, where stronger-than-expected consumer demand is being cited for increased cargo volume in March with growth around 20% higher than last year.
Things aren’t quite as rosy for trucking. While April numbers were better than expected, the end of the great freight recession isn’t here yet. Low first quarter earnings were reported for most carriers though demand has remained stable. High operating costs and high capacity seem to be the largest contributors for this troubled sector.
Increased reliance on intermodal has also contributed to woes in trucking, though we’re seeing that in shorter-haul lanes such as the East Coast, the much more competitive rates are keeping intermodal from taking as big of a bite out of the trucking industry.
Since August of last year, we’ve been reporting on how the diesel benchmark price has continued to defy expectations, spending much of that time below the $4 per-gallon threshold, and the last month has been no exception, as the price index has consistently dropped, leading to $3.85 cents per gallon in the latest report.
In air freight, the ongoing tensions around the Red Sea have continued to boost air cargo volume with double-digit growth year over year every month so far in 2024.
That’s it for this month’s Industry Insights Report. We’ll see you in June and, as always, PGL will be here to keep you informed and will keep delivering peace of mind, 24/7/365.
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