DSC Insights: July 2019

In the July edition of DSC Insights, economic and labor trends remain unchanged, though there is some indication that the real estate market is softening. The JOC Daily Newswire reports that rent increases are starting to moderate, giving shippers some relief, but with more imports and the demand for e-commerce fulfillment space at the ports, indications are that industrial real estate will remain strong through 2019.

Transportation capacity levels have not significantly changed, but there is future uncertainty due to spot truck rates dropping in July after increasing in June. And, some sources believe the intermodal market has hit rock bottom, with shippers moving a lower volume of inventory in the second half of this year than in 2018. In addition, according to Cass Information Systems, the price of diesel could have a negative effect for trucking and intermodal companies in the coming months.

In the News section, stories on automation and the effects of tariffs dominate. With the International Maritime Organization (IMO) 2020 deadline to reduce sulfur oxide emissions, carriers and shippers are facing uncertainty over its potential effects on costs and freight rates.

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*No guarantee is presented or implied as to the accuracy of specific forecasts, projections or predictive statements contained herein.”

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