Sat.Jun 01, 2013 - Fri.Jun 07, 2013

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More Signs of a Financial Economy; Not a Production Economy

10xLogistics

On June 3 the Institute for Supply Management issued their May ISM index and it came in at 49. Unfortunately, this means the manufacturing component of our economy actually contracted in May (despite all the talk of a manufacturing renaissance). This is the lowest since November of 2012 and the lowest level since June of 2009. Both the price index and employment index showed decreases as well.

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Amazon Fresh - Amazon Groceries to a Door Near You

10xLogistics

A fascinating discovery occurred the other day on my way to Chicago from Michigan. As I was driving down I-94 I saw a delivery truck coming the other direction. It looked a lot like the size / model of a UPS truck except it was somewhat lime green. On the side of the delivery truck was a logo that said " Amazon Fresh ". It had the distinctive Amazon "arrow" logo and I thought to myself - OK, here it comes.

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CASS Freight Index for May - Volumes and Expenditures Roughly Steady

10xLogistics

The May Cass Freight Index is out and it is clear that rates are staying flat and volumes are a bit behind where they were last year. Despite never missing an opportunity to say "Hours of Service (HOS) in July will cause rates to go up" the industry is starting to see the interesting phenomenon that the economy can have positive GDP rates yet freight volumes do not increase enough to put pressure on rates.

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Crude By Rail is The New Hot Thing

10xLogistics

Many have always said crude by rail was just a "stop gap" until new pipelines are built out to support the new finds of oil all over North America. However, as this article in the WSJ points out (subscription required) Kinder Morgan is canceling a $2Bl pipeline project because West Coast refiners want the crude delivered by rail. Pipelines lock contracts for a long time where rail is far more "variable".

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Artificial Intelligence and the Transportation Industry

Artificial intelligence has quickly become a feature of everyday life: Using face ID to unlock a phone, communicating with online chatbots, and letting “smart” appliances help manage our homes are just a few of the ways that we interact with AI regularly. Forward-looking businesses are also using AI to transform their operations and gain a competitive edge.