Weekly Transportation Update: Real consumer spending rises in May after downward revisions.

Economic indicators were mixed this week with an increase in real consumer spending, no change in non-automotive retail inventories, lackluster new orders for durable manufactured goods, and a sharp drop in sales of new homes.

The week also brought some notable developments at the two major parcel carriers and a safety oversight report on last year’s train derailment in East Palestine, Ohio.

• Sales of new homes plunged in May.
• RXO to buy Coyote from UPS as FedEx weighs options for LTL unit.
• Dry van and refrigerated spot rates rise sharply in line with seasonal expectations.
• Rail carload traffic continues to lag 2023 levels while intermodal volume is still strong.