Weekly Transportation Update: May sees no inflation at either the consumer or producer level

Inflation in April was nonexistent for consumers while pricing within the supply chain declined m/m. Despite “modest further progress” toward achieving the target of 2% inflation, the Federal Reserve held interest rates steady at this week’s meeting.

Closer to the freight sector, two pricing developments were especially notable. Pricing for freight brokers rose sharply in May while prices for commercial auto insurance premiums has accelerated. Carriers and shippers are seeing some relief, however, as diesel prices fell for a ninth straight week..

• Pricing rises strongly for freight brokers, trucking insurance premiums.
• Business formation in transportation and warehousing continues to fall.
• Spot rates in trucking were basically steady overall for the second straight week.
• Rail traffic was mixed on a y/y basis in the latest week.