Editor’s note: Don’t let a decision made be the last word. What appeared to be a final edition of our monthly Digest in April has now been rejuvenated into a more condensed version for our audience. If there are any topics you would like the Rockfarm team to cover more in depth in our monthly Digest or in our weekly one-pagers please let us know at firstname.lastname@example.org…and don’t forget to follow us on LinkedIn.
While fuel has continued to stay steady at its new norm of $3.15 average, the truckload cost per mile index showed some relief in April, falling to $2.99 per mile. The question before us is: “Is this a temporary reprieve or will we see another bump in rates as we head into the summer?” Midway through May, the Rockfarm Truckload Index is holding steady at $2.98 per mile. Coupled with diesel staying relatively steady at last week’s high of $3.16 per gallon, we can state we are, in fact, seeing a true rate decrease.
Many challenges remain: port backlogs continue alongside regional spikes in rates that are still impacting shippers as truck capacity remains tight. Combine that with being hit with the unexpected, as in last week’s gas pipeline, and Memphis bridge shutdowns, or the Suez blockage earlier this year, and we realize quickly the fragility of our supply chains.
On the forecast front, Q1 inventory levels were revised slightly by the U.S. Census Bureau in the May report, which showed the inventory to sales ratio at 1.23, only a small change from February. The end result is sales are strong and inventory levels are still not built up, which forecasts a strong summer ahead with capacity remaining tight.
Brad’s journey into logistics began as a Marine Officer and transitioned from the LTL docks to the non-asset side within the logistics service provider arena. As a co-founder of Rockfarm, Brad drives our business development efforts and delivery of our promise. An Arizona native, Brad enjoys spending time outdoors in his home state with his wife and family.
“Our approach to the market allowed us an opportunity to push forward in 2008 and enable our mission, “lower the cost to serve” to stand as a cornerstone to our company today.”