Transportation Economy News Updates

The U.S. economy, hobbled by last fall’s 43-day government shutdown, advanced at an unexpectedly sluggish 0.7% annual rate from October through December, the Commerce Department reported.

The data has been overtaken by a conflict that began when the U.S. and Israel attacked Iran on Feb. 28. Gas prices have jumped sharply and are expected to fuel higher costs broadly. 

The most immediate impact from the escalating Middle East conflict is through market reaction as investors take flight to safe havens such as the dollar and gold, while stocks slump.

Runaway freight is one of the most tangible market responses to a conflict that began on Feb. 28 and culminated with the vital Strait of Hormuz choke point all-but closing to tanker traffic.

A downturn in government and consumer spending contributed to the slowdown in fourth-quarter growth, the government said. Consumer spending rose just 2.2%.

The pool of available truck drivers showed signs of tightening during the fourth quarter amid a freight market that continues to face headwinds, according to experts.

Paladin is the latest in a growing list of larger carriers to either shutter operations or declare bankruptcy amid the ongoing freight rate recession, including R&R Family of Cos.

In January, Pittsburgh-based R&R Family of Cos. shut down, according to a source. According to the source and court documents, R&R lost the backing of its largest lender.

The Federal Open Market Committee voted 10-2 Jan. 28 to hold the benchmark federal funds rate in a range of 3.5%-3.75%. The two dissenting were in favor of a quarter-point reduction.

GDP rose at a 4.4% annual pace in the third quarter, the Commerce Department reported Jan. 22, up from 3.8% in the April-June quarter and from the 4.3% growth the department initially estimated.