Supply Chain by the Numbers for Feb. 19, 2020

1300

That was the January decline in the Cass Freight Index, which tracks US shipping volumes, the largest year-over-year decline since the deep recession year of 2009. That’s not good news for carriers – or the overall economy, as freight is often a very good predictor of both good and bad economic times ahead. And that sharp drop in the freight index came largely before the impact of the coronavirus crisis in China and beyond, which has already deeply impact the flow of ocean containers into the US. Naturally enough, weak volumes led to a sharp drop in the Cass Linehaul index, which measures US truckload rates before fuel surcharges and other accessorial costs. The index was down 6.3% year over year, and 2.9% versus December.

23,750

That was the rather precise estimate for the number of industrial robot shipments in 2019, according to a new report from Association for Advancing Automation, an industry group based in Ann Arbor, Michigan. According to a summary of the report by Reuters, that 23,000-plus robots total was surprisingly down 16% from 2018. Robot shipments also fell in Mexico in 2019, declining 25% to 3,263, while shipments in Canada roughly held steady at just over 3,000 units. Why the decline in the US? A relatively weak manufacturing sector, with many companies impacted by the tariff wars, received the top blame, though no one really knows for sure. There may also have just been some timing issues, as the auto sector, by far the largest for robot deployment, may have paused adoption last year amid plans to retool in 2020 and 2021. For example, General Motors has announced it is investing $2.2 billion to build electric trucks and autonomous electric vehicles at its Detroit-area plant in Hamtramck, Michigan – and no doubt there will be lots of robots.