The LSC team and special guest, Jonathan Starks from FTR Transportation Intelligence reviewed market trends and insights in the logistics, paper, labor, and postal industries. Here is the recap of their findings:
Spot market activity is “normalizing” at a lower level.
Overall, demand for trucking has slowed but remains at healthy levels.
Utilization is moving lower as productivity improves.
Trucking costs have peaked but are unlikely to move significantly lower from where they are now.
Rail service has not worsened or enhanced relative to long-term trends.
Paper Market update:
All suppliers are on allocation, supply restrictions, or even moratorium.
Mill inventories across all grade segments are at record 5-year lows.
Imports held up in all regions due to a lack of containers, high container costs, and energy surcharges.
We see unprecedented energy surcharges on shipments from many mills, and several European mills are taking downtime due to energy prices.
Things will not improve until well into late 2022 or early 2023. We need to be thinking 90 days in advance. Forecasting is CRITICAL!!!!
Hopeful for a more balanced market in 2023
Staffing shortages, The Great Resignation, Quiet quitting
US Manufacturing is experiencing a rebound, with companies adding workers amid high consumer demand for products
The workforce expects transparency, higher pay, and compassionate managers
Flex workforce and gig economy are all new talent models
Broaden search for talent and workforce planning is critical
The expected postal increase for Jan 2023 is Oct 7- Oct 12