Spot truckload rates surge to start New Year

Third quarter operating income improved due to higher revenue per shipment and a net fuel benefit at all transportation segments. The quarter's results also benefited from lower variable compensation expense and less severe winter weather, resulting in favorable year-over-year comparisons. The improved results were partially offset by the effects of the Omicron variant, as well as higher purchased transportation costs and wage rates. FedEx Ground operating results declined primarily due to increased rates for purchased transportation and employee wages, network inefficiencies, and expansion-related costs. These costs were partially offset by higher revenue per package, a boost from two additional ground commercial operating weekdays, and a net fuel benefit. Average daily volume was flat, as Ground Economy declined and growth in commercial and FedEx Home Delivery services was constrained by the effects of the Omicron variant. FedEx Freight third quarter operating income nearly tripled, driven by a continued focus on revenue quality and profitable growth. Revenue per shipment increased 19% and average daily shipments grew 2% during the quarter, while the operating margin increased 850 basis points to 15.0%.

With a recent poll concluding that the majority of Americans would prefer to return to pre-internet days, are we just seeing a nostalgic yearning for simpler times or is there something deeper and more complex going on? The poll1 revealed that the desire to return to an unplugged era is surprisingly strong among the younger generation and is not strikingly different from those who are old enough to remember not having smartphones and easy internet access. While 77% of Americans aged 35 to 54 said they would prefer a return to their analog roots – the highest of any group in the survey – an eyebrow-raising 63% of 18- to 34-year-olds also agreed with this sentiment. The survey also revealed that 57% of people under 35 agreed with the statement that “technology is more likely to divide people than unite them”– an indication that the social media generation may be growing weary – and wary – of the world of feuding tech billionaires, Chat GPT and Deepfake.

Average student spending on college textbooks and digital course materials has steadily declined in recent years, according to new data unveiled from Student Watch, which is funded by the National Association of College Stores Foundation, and Student Monitor, an independent research firm. In its new annual report, Student Watch reports a decline in student spending on course materials of 35 percent over the past six years, while Student Monitor’s semi-annual report similarly indicates a 39 percent decline over the same time period. “Students are actually spending less on college course materials than we have seen them spend before,” commented Brittany Conley, Research Analyst, On Campus Research for the National Association of College Stores (NACS). “We saw that students spent about $413 across the academic year on course materials. Ten years ago, that number was closer to $700.”