The Coming Inflation Crisis + Top Paying Loads in Trucking

The coming inflation crisis is serious business and should be taken as such. The shortages, bottlenecks, and price spikes are all indications of the coming inflation crisis. Some people say there is no inflation crisis coming while others state that it has already arrived.

In past videos we've talked about the semiconductor shortage and lumber shortage and price spike. These computer chips go into everything from consumer electronics to Semi Trucks. Real Estate prices are booming and lumber costs have gone through the roof.

Crude oil, plastics, rubber, and chemicals are in short supply. While steel, copper, and iron ore prices have surged. The same can be said with consumables such as coffee and wheat. Corn prices are at an 8 year high and this is a strong indication of the coming inflation crisis because corn is not only used in food but is also heavily added to gasoline in the form of ethanol. We should also not forget that animal feed is heavily reliant on corn with cows eating upwards of 50 lbs of corn daily. This will inflate the cost of beef and poultry so your next steak may cost a bit more than you'd like to pay.

Palm oil is up 135% and soybeans are selling for $16 per bushel which is the first time this is happening at that price since 2012. This is in many ways indicative of inflation.

The Suez canal backed up global shipping for a few days but the ripple effects of this have lasted for months now. India's Covid outbreak is threatening the closures or at least major slowdowns of some of the biggest ports in the world. This will only push inflation higher and higher in 2021.

Drought is hurting agricultural crops in the central United States which produces much of the corn mentioned earlier. If there is a shortage of corn that we've grown so reliant on, the coming inflation crisis is set to be considerably worse than previously imagined.

The deep freeze and blackouts in the South and Southeastern part of the country including the state of Texas, have really hurt energy and petroleum production. This is not helped by the largest fuel pipeline in the U.S. getting hacked. We're talking about Colonial Pipeline.

A major U.S. Economic Indicator - the Logistics Managers' Index looks at the 3 key supply chain components of inventory expenses, transportation expenses, and warehousing expenses. This is a very accurate economic indicator which currently shows a coming inflation crisis that is inevitable. Right now the index is sitting at the 2nd highest level on record and there are no declines in sight for the next 12 months.

Judging based on this indicator alone, the coming inflation crisis will be a heavy burden on many. The Logistics Managers' Index is generally found to be accurate 90% of the time at accurately predicting actual costs in the three key supply chain components which are often indicative of inflation.

Additionally, production price increases were 2X higher than initially expected by analysts. In nearly all cases, when production price increases, it is pushed onto the consumer. When we look a little deeper, this is confirmed by the U.S. Consumer Price Index being up at the highest level since 1982.

The good news for truckers is that the Cass Freight Index is expecting spot market truckload rates to continue to increase. This is seen in both year to year as well as quarter to quarter growth. We can compare just about any recent time frame and see positive growth from 30% to 70% depending on timeline.

What we know for a fact is that policymakers are saying there is no inflation crisis coming and we have nothing to worry about.

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