Green Mountain’s Post

Sometimes you have to be careful how the news is spun because it does tend to give skewed information. A few weeks ago Supply Chain Brain reported that truck visits to the DCs for the top 5 retailers saw a 30% increase in truck visits in June (YoY). As much as this can get readers excited, this is just the top retailers and not all industries and channels combined. But last Thursday DC Velocity reported that truck freight volumes dropped 2.2% and freight spend dropped 2.8% (Q2 compared to Q1). However, the drops were at a slow pace and there are some signs that the freight market is close to bottoming out. Since I don’t live in the trenches as much as my fellow logistics practitioners, some might think the situation is much worse or perhaps better than what we read in the news. It’s always good to understand the data that is published, but there can always be caveats associated. For instance, if truck visits were up 30% in June for the top 5 retailers, what % do these top 5 retailers occupy compared to everyone else? Seeing numbers will always grab our attention, but it does intend to be misleading or conflicting.  

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Overlay the graph for "Warehouse Transaction Volume in the U.S." with this graph for shipping volume and it would strongly correlate. On top of those two lines overlay the trend line for "E-commerce Sales to Overall Retail Sales" (% share) and you'd see three lines following a very similar path. Spikes in 2021 - 2022, falling back to a lower, but steadily upward trending line we saw prior to the pandemic.

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