December 6, 2022

Taylor Daily Press

Complete News World

U.S. freight is at risk of entering a recession

Freight traffic in the United States is at significant risk of entering a recession. Above all, the department must take into account the many factors that suppress the process. This is clear from the consultant Cos Information Systems report.

The Researchers Indicates the transition from a commodity to a service economy. In addition, they point out that disposable income has been eroded by inflation. Rising interest rates are also having a negative impact on freight traffic.

Barometer

Freight is widely regarded as the barometer of the US economy. After all, when the purchase of goods decreases, trucks and trains can carry less cargo. The report notes that the volume of inventory in April was not only lower than the previous month, but also lower than the same period last year.

“The U.S. traffic index fell 0.5 percent in April compared to the same period last year,” the researchers point out. “There was still a slight increase of 0.6 per cent in March. In February, the index recorded a growth of 3.6 per cent.

Against March this year There was a rebirth 2.6 percent. The index was 0.9 percent below its regular seasonal level. Compared to March two years ago, this marks the beginning of a corona epidemic, with the index rising 27 percent.

War

“Freight traffic still has some difficult months,” said Tim Denoir, head of research. “Therefore, a recession, shrinking activity for two consecutive quarters, should be taken into account in this sector.”

“Er Threatens further disruptions In the supply chain. Freight was delayed before the war broke out in Europe. However, violent conflict has exacerbated the situation significantly.

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“After nearly two years of rotating inventory volumes, activity has plummeted,” Denoir added.

“Figures for April may have had an indirect impact on the locks in China, but Stagnation of container vessels Unloaded in North American ports, the situation will be much more difficult in the coming months.

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