October, 2020

International Supply Chain

  • China suffered a loss of 40% in exports during February 2020 but has since recovered that loss as of August 2020 and is now 10% ahead when compared to their position in 2019.
  • Global trade is decreased, with the lowest point experienced in May 2020. This places it 10% behind its original position in 2019.
  • Most of the current global trade recovery is due to China.
  • In August 2020, US trade was 10% behind the position it had in August 2019.
  • Industrial components, agricultural products, and machinery are the leading US export.
  • Retail grew 7.8% in September compared to previous months.
  • Furniture stores grew 7.5% in 2020, compared to only 1.7% in August 2019.
  • Electric sales dropped 6.1%, accelerating the previous downward trend of -4.7% observed in August.
  • Household appliances imports grew 45.5% in September 2020.
  • Electrolux 79.9%
  • Miele 143.7%
  • Consumer electronics only grew 9.5% since the previous month.
  • Activewear has grown 290%, lead by H&M and Delta Apparel.

Domestic Freight Updates

  • The expectation for truckload (TL) contractual rates to increase by double digits in 2021 is growing. High demand and tight capacity to push rates over 10% in 2021.
  • Spot rates have remained positive year-over-year since mid-June, with the gap to the prior year continuing to increase. Currently, rates sit 40% higher than they were in 2019.
  • Logistics executives do not expect spot truckload rates to soar much higher, but they do not think they will drop either, forcing shipper to collaborate more.

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Written By
Sean Farley