What Are Freight Rates Telling Us
Truck Drivers are seeing their income drop right before their eyes as rates start to fall. Almost every good consumed in the US travels by truck before its end use, and we are seeing a decline in rates driven by a drop in demand.
Solution: Dunavant is presenting different alternatives to carriers to achieve more timely payments and better cash flow.
During second-quarter earnings calls, top executives are talking more about bringing workforces and supply chains back to the US or neighboring countries. Data from Bank of America shows the use of the term has spiked to a record level, even though only about a quarter of S&P 500 companies have reported earnings so far.
Solution: Dunavant recently established its newly United States/Mexico cross-border solution that allows entry of goods at any of the ports of entry for Mexico. Please contact Johnny Ariza (956) 285-4648
North American Port Congestion
While the number of ships waiting off LA/LGB has fallen to 26 from a high of 109, North American port congestion has re-entered record territory. As of last week, 153 ships queued waiting to enter US ports, a majority off the east and gulf ports. The ship queue has jumped 66% over the past seven weeks.
Solution: At Dunavant, we monitor multiple data sets to be proactive rather than reactive when making everyday supply chain decisions. This coupled with our large footprint allows us to create tailored solutions such as transloading in Houston or accessing Mexican ports.
Last Thursday, the commerce department reported that gross domestic product had contracted .9% for the second quarter following a contraction in the first. Looking at the data, a significant driver of the shrinkage was businesses slowing the expansion of their inventories.
Solution: Allow Dunavant to perform a complete audit of your supply chain to find inefficiencies and innovative ways to save. You might want to consider relocating slow moving inventory from existing DC’s to create space for fast moving inventory. Dunavant has dedicated warehouse space in Houston and the ability to support this option throughout the US and Mexico.
Senior Vice President, Customer Experience