SNDR - Freight bottlenecks loom as holiday headache for retail sector
The Cass Freight Index blew in weak for July, with a 3.1% drop from the June level. The index was up 15.6% against the pandemic comparable from a year ago, while costs were 43% higher. On a two-tear comparison, the freight index was up 0.5% and the expenditures index was 22.7% higher. "The short-term skid is consistent with recent slowdowns in rail and LTL volumes, much of which is attributable to equipment and driver capacity constraints. Shipment volumes remain limited to no small extent by the capacity of the freight network, as the 121 containerships anchored off North American ports on August 10th attest to," updates CASS. The equipment shortage includes chassis and trailers shortages, while supply chains issues are also impacting Class 8 tractors. The bottlenecks have near-term implications for companies like FedEx (NYSE:FDX), UPS (NYSE:UPS), Knight-Swift Transportation (NYSE:KNX), Old Dominion Freight Line (NASDAQ:ODFL) and Schneider National (NYSE:SNDR), and
For further details see:
Freight bottlenecks loom as holiday headache for retail sector