Skip to content
Search AI Powered

Latest Stories

newsworthy

Trucking Freight Futures to launch March 29

Companies can begin trading freight futures contracts via Nodal Exchange, FreightWaves and DAT later this month.

Three organizations have joined forces to launch the industry's first Trucking Freight Futures exchange, set to open March 29.

Derivatives exchange and clearinghouse Nodal Exchange is partnering with logistics data and analytics provider FreightWaves and price reporting agency DAT to create the futures market for trucking, which will allow buyers and sellers to trade financial contracts for freight pricing, helping them hedge their exposure to spot rate volatility, the firms said.


The project is three years in the making, and follows a recent series of presentations in seven major markets designed to inform potential participants about the need for a trucking freight futures market and how it will work.

Initial contracts will be based on seven lanes between major freight markets, three regional baskets of lanes and a national average truckload spot rate, according to the companies.

"Freight and transportation costs are the most substantial risk to the earnings of an estimated 40 percent of S&P 500 companies," said Craig Fuller, founder and CEO of FreightWaves, who has spearheaded the effort to launch the freight futures market. "Labor shortages, regulatory and trade environments, and the trucking industry's 'OPEC' moment in December 2017 with the electronic logging device (ELD) mandate, has created the right inflection point for Trucking Freight Futures to come to market."

Trucking Freight Futures will be financially settled contracts listed on Nodal Exchange, a designated contract market regulated by the U.S. Commodity Futures Trading Commission (CFTC), the organizations said. The contracts will clear through Nodal Clear, the clearinghouse for Nodal Exchange and central counterparty for Nodal Exchange transactions.

The Latest

More Stories

chart of US imports

NRF: Container imports remain high after Trump tariff threats

Days after tariff threats by the Trump Administration against Canada and Mexico were paused for a month, imports at the nation’s major container ports are expected to remain high, as retailers continue to bring in cargo ahead of the new deadline and to cope with elevated tariffs on China that did occur, according to the Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

Part of the reason for that situation is that companies can’t adjust to tariffs overnight by finding new suppliers. “Supply chains are complex. Retailers continue to engage in diversification efforts. Unfortunately, it takes significant time to move supply chains, even if you can find available capacity,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a release.

Keep ReadingShow less

Featured

AI: Is it the real deal?

Having reported on the supply chain world for some 25 years, I've seen technologies come and go. Many were once touted as the best thing since sliced bread but either failed to live up to the hype or else had to simmer a few years before they caught on.

Remember the hoopla surrounding dot-com retail? In the late 1990s, we were told that stores as we knew them would eventually go away, to be totally replaced by online shopping. The ease and convenience of e-commerce made that a reasonable expectation. But in March 2000, the bubble burst, and a host of online retailers closed their virtual doors forever. Of course, online shopping is still very much with us, and its share of total retail sales is growing by the year. Maybe we'll get to that retail seventh heaven someday, but it's taking much longer than originally predicted.

Keep ReadingShow less
Logistics economy picked up speed in January

Logistics Managers' Index

Logistics economy picked up speed in January

Economic activity in the logistics industry expanded in January, growing at its fastest clip in more than two years, according to the latest Logistics Managers’ Index (LMI) report, released this week.

The LMI jumped nearly five points from December to a reading of 62, reflecting continued steady growth in the U.S. economy along with faster-than-expected inventory growth across the sector as retailers, wholesalers, and manufacturers attempted to manage the uncertainty of tariffs and a changing regulatory environment. The January reading represented the fastest rate of expansion since June 2022, the LMI researchers said.

Keep ReadingShow less
Disrupting the furniture supply chain: An interview with Jay Rogers

Disrupting the furniture supply chain: An interview with Jay Rogers

As commodities go, furniture presents its share of manufacturing and distribution challenges. For one thing, it's bulky. Second, its main components—wood and cloth—are easily damaged in transit. Third, much of it is manufactured overseas, making for some very long supply chains with all the associated risks. And finally, completed pieces can sit on the showroom floor for weeks or months, tying up inventory dollars and valuable retail space.

In other words, the furniture market is ripe for disruption. And John "Jay" Rogers wants to be the catalyst. In 2022, he cofounded a company that takes a whole new approach to furniture manufacturing—one that leverages the power of 3D printing and robotics. Rogers serves as CEO of that company, Haddy, which essentially aims to transform how furniture—and all elements of the "built environment"—are designed, manufactured, distributed, and, ultimately, recycled.

Keep ReadingShow less
chart of GenAI effect on workforce

Gartner: GenAI tools create anxiety among employees

Generative AI (GenAI) is being deployed by 72% of supply chain organizations, but most are experiencing just middling results for productivity and ROI, according to a survey by Gartner, Inc.

That’s because productivity gains from the use of GenAI for individual, desk-based workers are not translating to greater team-level productivity. Additionally, the deployment of GenAI tools is increasing anxiety among many employees, providing a dampening effect on their productivity, Gartner found.

Keep ReadingShow less