Zach Strickland, FW Market Expert & Market Analyst @ freightwaves.com

Chart of the Week: Ultra-Low Sulfur Diesel Rack Price – USA, Outbound Tender Rejection Index – Detroit (SONAR: ULSDR.USA, OTRI.DTW)

Like an earthquake, the two major stories of the week hit trucking hard with the fallout yet to be fully measured as neither are fully resolved. The attack on Saudi Arabian oil production and the General Motors labor strike had an immediate impact to the freight market as wholesale diesel prices jumped $0.16/gallon on Monday (not including taxes), while outbound rejection rates spiked out of the Detroit market. Both events were quick and severe, but in the long run, several concerns for the trucking sector still exist. According to Zach Strickland, FW Market Expert & Market Analyst

Automotive Turmoil

On September 15 nearly 50,000 United Auto Workers (UAW) went on strike, which slowed the flow of parts from U.S. plants to General Motors (GM) facilities. The near-term impact was quick and somewhat obvious as carriers avoided the Detroit drama by rejecting freight movements in and around the area, anticipating long lines and delays at consignees. Some of these carriers are potentially union carriers who want to support the UAW, but that level of detail is not available in the data. According to Strickland.

Detroit’s August automotive production has grown 6.7% since last year with 153,210 units. Image: SONAR Auto production tree map

Read the full story HERE

Related articles:

Truckers should fill up their tanks as Diesel price could surge $.60 per gallon this week

GM strike brings layoffs to truckers in Canada

Oil prices likely to surge at Sunday’s opening after a drones attack on Saudi Arabia rafinery

Source and credits: freightwaves.com /  Zach Strickland, FW Market Expert & Market Analyst  /  iTrucker  / Mario Pawlowski