Posted on 05/23/2018 7:53:37 AM PDT by BenLurkin
Multiple signs of inflation in freight-related industries are at or near historical highs, in what could be an early sign that price pressures are building and ready to reverberate around the economy.
Freight marketplace DAT keeps track of supply and demand in the freight industry through a bulletin board that matches companies with loads to be delivered to the vehicles that will take the goods to the marketplace. The measures are in the spot market, where vendors that don't contract their deliveries find drivers for their products.
Recent readings show demand for vehicles skyrocketing, a sign that generally points to inflationary pressures building up in the supply chain.
"It's an indication that there's capacity pressure in the marketplace, that brokers are searching more and posting more in order to find a truck," said Peggy Dorf, market analyst at DAT. "This is an indicator that pressure is much higher than it was a year ago."
Metrics the firm uses to track demand for trucks are showing a sharp increase and outstripping the number of drivers available. Supply-demand dynamics, then, would indicate rising rates for trucks that could lead to pricing pressures on a broader level.
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The numbers by themselves, though, don't indicate that inflation is ready to strike soon. Indeed, the most recent readings, such as the consumer and producer price indexes, show inflation pressures rising though relatively benign.
But they do jibe with some other indicators showing inflation is rising beneath the surface.
(Excerpt) Read more at cnbc.com ...
The Obama administration spent eight years attempting to induce inflation via monetary policy but now in the Trump era, record orders for new 18 wheeler transport rigs is a bad thing.
Got it, right.
Well, Diesel prices seem to be on the rise.
During the 200 Presidential campaign the media accused Bush of trying to talk the economy down. Just sayin’.....
Demand for trucks should mean business is great. I don’t get it.
Diesel is up, up and up......................
Yes they is.................
2000 campaign. Sheeesh!
If it was a Democrat, the media would say this is great news. That simple.
Recent readings show demand for vehicles skyrocketing,.......................You can bet your bippie on that. Drove up I 95 to Nothern NY and tried to avoid all that traffic by using a back route on the return trip. Forgetaboutit, it was just as bad, the 18 wheelers were everywhere, zigging and zagging in and out, even in the far left lanes. Doing 80 -85 and they were still on my tail. It shows the economy is moving, the real estate market is on the upward turn too, all good indicators. Also seeing lots of jobs available for drivers.
Caesar vs Marcus Arelius? :>)
What? What did Obama do with monetary policy to reduce inflation? During his watch the market was flooded with fed created liquidity, certainly not an anti-inflationary approach.
The only reason we didn't have massive inflation under Obama, is that Obama didn't do anything to help the economy, continued to offshore our jobs with free trade agreements and regulated the heck out of the economy.
As far as I can tell, Obama's monetary and fiscal policy weren't anti-inflation at all. He just did a horrible job with the economy. Although, he really did inherit a horrible economy, he just didn't help it any.
This is the effect of electronic logging for OTR truckers. Now that the logs have to be done electronically there’s no more fudging logs to keep drivers on the road. While we can debate whether truckers should be doing that or not the net effect is trucking companies need WAY more trucks or drivers than they had previously. And since nearly all freight is trucked the increased cost to companies for trucking will show up in prices. I’m not going to argue whether this is good or bad because it’s good for some and bad for others but the cause of it all is ELDs.
>>The Obama administration spent eight years attempting to induce inflation via monetary policy but now in the Trump era, record orders for new 18 wheeler transport rigs is a bad thing.
More proof that the elites want a highly-suppressed economy. Trucks moving products to consumers means that resources are being “wasted” on people who don’t matter anymore to them. Global warming, Peak Oil, the “new” Wall Street of Fiat Currency to banks to elites to shares, etc are all examples of how “wealth keepaway” is the real business of the Oligarchy.
>>>>”The Obama administration spent eight years attempting to induce inflation via monetary policy”
>>What? What did Obama do with monetary policy to reduce inflation?
Induce is not the same thing as reduce.
>>I’m not going to argue whether this is good or bad because it’s good for some and bad for others but the cause of it all is ELDs.
ELDs for OTR trucks are an ethically good decision when you balance the economic, legal, and moral duties involved.
I’d rather “worry” about inflation than deflation for a while. Deflation is boring, inflation is easier to play.
Dow theory views increases in transportation as a major indication that the overall economy is growing.
It is pretty clear that the real economy is taking off. Prices will rise, and new capacity will need to added.
It is a good thing.
Read my reply again, that or go look up the definition of “induce.” Sorry to be so terse, but there’s no way around it. Roseanne Rosannadanna, please pick up the white courtesy phone.
For what it’s worth I keep hearing a radio commercial from a trucking company trying to recruit owner-operators which says “we are now accepting older trucks”.
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