Truckers benefit from factory activity; analysts

KANSAS CITY, Mo. — A U.S.-based transportation consultancy says the recent rise in factory utilization and industrial production is causing increased activity among full load (TL) carriers south of the border.

Analysts with TranSystems say haulers carrying steel, copper, plastic resins, and other materials critical to industrial manufacturing are seeing upticks in activity as more and more companies gear up to fill reorders of merchandise.

Players in the LTL arena, on the other hand, are reporting worse than average seasonality in January.

The most recent TranSystems Transportation Activity Index (TTAI) shows economic recovery is largely benefiting the air cargo industry, marine carriers, and certain elements of the trucking industry. Rail activity has been soft in recent months.
A TranSystems release points out that dray operators are seeing some impact from the flow of goods to and from the nation’s ports.

“Exports from the U.S. continued to be generally better as the U.S. dollar and improving Asian economies spurred demand. And, there is also some improving import activity being reported – especially on the West Coast,” the release states.

TranSystems says the full impact of inventory rebuilding activity has not yet been felt. It believes transportation activity will pick up further throughout February and March.

“If there is a threat of a double-dip in transportation activity, it will likely come at the end of the first quarter and early into the second,” TranSystems analysts say.

TranSystems has 1,300 professionals in 47 offices throughout the U.S. offering architecture, engineering and planning; management and supply chain consulting; real estate consulting; and security to all sectors of the transportation industry.