FedEx forecasts strong profits for LTL division

FedEx expects its trucking operating profits to keep rising, despite what could be a rocky economic road in the second half of 2022, executives said at an investor meeting.

New House legislation would entice carriers to haul US exports

Hot on the heels of major shipping reform signed into law, two California Congressmen have introduced a bill that would incentivize vessels to carry US ag exports or call multiple US ports.

Chaotic ‘spillover’ market reveals value of breakbulk shipping skills

Old-fashioned breakbulk and supply chain skills have served shippers well in the “spillover” market, and some practices may linger after the container market normalizes.

Frontloading by US retailers driving inventory buildup

As US consumer sentiment fell to record lows in June, some retailers are sitting on higher inventory than expected heading into peak shipping season.

Freight growth to continue despite inflation, rising oil prices: economists

Modest growth in freight volumes will continue in the second half of the year even if inflation and oil prices remain high, according to trade economists who spoke at the SMC3 conference this week.

Essential Reads

Flexport CEO Ryan Petersen will hand over the reins to Amazon logistics vet Dave Clark, a move that shows the forwarder’s lure for heavyweight talent — and possibly an acknowledgement of slower-than-expected market share gains.
Forwarders say they expect an earlier-than-usual peak season that will lift trans-Pacific spot rates that have been easing, but the trimming of retail orders and front-loading of cargo cloud the longer-term outlook for the health of Asian imports.
The cooling of trucking’s transactional spot market signals a “realignment,” not a contraction, as shippers cement contractual agreements and freight demand rises, albeit more slowly.
Container line Hapag-Lloyd has settled with the Federal Maritime Commission over improperly charging detention to a California drayage carrier in mid-2021, a bellwether case in the long-running issue of free time fee assessments.
The chassis shortage is affecting Norfolk Southern despite a 5.1 percent decline in volumes handled by the railroad between January and May compared with the same period in 2021.