Positive Freight Forecasts for October
October typically reports the strongest numbers in terms of volume of any other month as businesses prepare for the holiday season. Bringing merchandise in for the holiday season also tends to increase the volume in August and September as well, making that three month period quite busy. Back to school shopping, iPhone sales, holiday inventory, and an improving housing market all are contributing to increased freight volumes; and reports from Port Tracker and the NRF (National Retail Federation) are showing positive economic growth.
Below are some numbers reported and forecasted by Port Tracker and NRF showing that the U.S. economy may be on the mend.
- Cumulative volume for August, September, and October up 7%
- October freight volume up 9.9%
- 7.7 million TEU in the first half of 2012, which is up 2.9%
- Freight forecast of 16 million TEU for all of 2012, which would be a 4.1% increase
- 1.42 million TEU handled in August, which is a 6.7% increase over July and 3.3% increase from August 2011
- Forecast for September includes increases of 8% (1.49 million TEU), while October is forecasted to see 9.9% increases (1.45 million TEU)
- Holiday retail sales are forecasted to be up 4.1% ($586.1 billion)
As you can see, these positive numbers are great for a recovering logistics industry. Volume, capacity, and pricing will continue to fluctuate due to a variety of factors (such as the now avoided port strikes); however, economic confidence and security seems to be growing leading up to this holiday season. Great news for all of you business owners – just make sure you work on your own forecasting to be sure to have just the right amount of inventory for your holiday customers!