Keep pulling the thread on Logistics Managers' Index.
In November, warehouse utilization entered contraction territory for the first time in the history of the Logistics Managers' Index, with a reading of 47.5.
Federal Reserve Chairman Jerome Powell stated that the Fed is more concerned with labor market dynamics than inflation, which he attributed to tariffs.
Federal Reserve Chairman Jerome Powell predicted that inflationary pressures from tariffs would peak in the first quarter of next year.
The Sonar Truckload Rejection Index (STRI) has reached 11.9% as of the day before this webinar.
Despite warehouse utilization contracting, inventory costs as measured by the Logistics Managers' Index continue to operate at a high level of 70 and above.
Dr. Rogers of the Logistics Managers' Index interprets low warehouse utilization as a bullish signal for the trucking industry, as it implies a shift to leaner, more time-sensitive inventory management.
The latest CPI inflation number was 2.7%, which was below the expectation of around 3%.
The current unemployment rate is 4.6%, which is higher than it has been in several years.
In the first and second quarters of this year, truck tender rejections were outpacing prior years significantly, but the gap narrowed in the middle of the year.
The National Truckload Index (NTIL) for line haul only is currently higher than it was at the same time last year, with a sharper upward trajectory.
Shippers have transitioned from just-in-time and just-in-case inventory strategies back to what now appears to be a just-in-time process.
Financial markets widely expect Jerome Powell to be replaced as Federal Reserve Chairman in June, with subsequent rate cuts anticipated from a new appointee.