Japan posted a record account deficit in January plunging into the “red” for the first time in 13 years.  The deficit, the broadest measure of Japan’s trade with the rest of the World stood at a record of $172.8 billion Yen ($1.8 billion dollars) in January.

• Exports in January plunged 46.3%
• Imports decline 31.7%
• Trade deficit was at $844.4 billion Yen.

Japan’s exports to the United States dropped:

• 52.9%
• Asian shipments fell 46.7%

Among exported products:

• Vehicle shipments were down 66.1%
• Exports of semi-conducted products were down 52.8%

This is the worst financial decline in the last 13 years for Japan.

Transportation has experienced the worst economic challenges, since the Great Depression. 

• Freight rates are down dramatically;
• Shipper demand is down dramatically;
• Some carriers have seen their revenue decline by 30%-40%;

Many trucking companies have substantial trucks “sitting up against the fence” due to the lack of freight. Some states such as Texas, freight rates are as low as 65¢ a mile;

• The economy continues to “sputter”.

At the same time, there is less demand for fuel, yet crude oil continues to rise, which directly affects trucking companies “bottom line” profitability.  To sum up the conditions of the trucking industry—very chaotic!