Trucking news and updates for Friday, March 5, 2021:
Trucking Jobs Experience First Decline Since Last April
In February, the for-hire trucking sector saw a decrease of 4,000 payroll jobs, as reported by preliminary data from the Department of Labor. This marks the first month-to-month decline since the significant job losses last April, when approximately 87,000 trucking jobs were eliminated due to the economic impact of the COVID-19 pandemic.
Recovery and Current Trends
Since the downturn in April, the trucking employment landscape has shown signs of steady recovery, featuring several months of job growth, including an addition of 37,000 jobs from August to November. Although hiring slowed last month, initial data suggested a decline in January’s employment, which has since been revised to show stagnant growth of 800 jobs compared to December.
February’s Employment Statistics
The reduction of 4,000 jobs in February comes amidst indications of a slowdown in the trucking sector’s recovery, though late February metrics suggest potential growth ahead. In contrast, the broader economy added 379,000 jobs in February, indicating heightened hiring activity and likely economic growth as spring approaches, coinciding with a decrease in coronavirus cases and increasing vaccinations.
Current Job Totals and Sector Performance
According to the Bureau of Labor Statistics, total employment in for-hire trucking reached 1,475,700 in February, which is significantly short of last February’s figure by 49,100 jobs but shows an improvement of 47,300 jobs compared to the low in April.
Mixed Results Across Industries
February’s DOL jobs report displayed mixed results in major freight-producing sectors; construction jobs fell by 61,000, while manufacturing gained 21,000, driven largely by the transportation equipment manufacturing sector, which contributed 9,700 jobs. The transportation and warehousing sector overall added 4,400 jobs, bolstered by couriers and messengers gaining 9,000 jobs and transit/ground passenger transport adding 8,600. However, air transportation suffered a loss of 8,200 jobs, alongside the trucking sector’s decline.
Spot Rates Experience Growth
Spot market rates for trucking saw a resurgence in February after brief stagnation in January, according to Truckstop.com data. Flatbed rates increased by an average of 5 cents per mile, while reefer and dry van rates each rose by 3 cents per mile. The flatbed average reached $2.69 per mile, the highest since September 2018, marking a significant increase compared to last year and 2019 averages.
Industry News and Innovations
In other updates, Harrold Annett, founder of TMC Transportation, passed away due to complications from Guillain Barre Syndrome. Additionally, Mack and Volvo announced unlimited over-the-air parameter updates for their vehicles, aiming to enhance customer experience. Furthermore, IntelliShift and Ford Commercial Solutions are collaborating to enhance fleet operations through integrated vehicle data, while CalAmp has introduced a revamped user interface for its iOn fleet management system.
