US Freight Carriers Not Seeing Profits
Shipping volume may not be translating into profits for US freight carriers, according to The Wall Street Journal.
Reduced earnings outlooks from some industry players have suggested that the market is tough for carriers, with a large trucking supply driving down prices.
Shippers increased activity in March, according to the online freight marketplace DAT Solutions LLC, but an oversupply of trucks and uneven demand has held down the rates carriers charge retailers, manufacturers and other shippers.
But a growing set of strong import numbers from US ports suggest that February’s trade was a pause and not a signal of a downturn for the industry.
Cargo has boomed for US ports in March as trade with China bounced back and companies rushed shipments across the Pacific before new shipping-industry alliances kicked in.
California’s neighbouring ports of Los Angeles and Long Beach saw loaded imports jump 26% over the same month last year and 13% from February’s depressed level.
The trade also benefited from a rebound in production in Asia after the Lunar New Year slowdown in February.