Freight Demand Stays High
Demand for freight transportation remained firm in the first few weeks of January, easing fears of an economic slump in the aftermath of a robust fourth quarter and the buildup of inventory over Y2K concerns.
One explanation offered by Thom S. Albrecht, a trucking industry analyst with ABN AMRO Inc. of Chicago, is that consumers who withdrew cash to protect themselves from Y2K banking snafus spent the extra money rather than return it to their bank accounts, thus giving retailers and other businesses a sales boost during a normally slow period.
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Many industry analysts had expected shippers to stockpile goods because of concern that computer glitches could disrupt transportation and electronic communications.
While some inventory buildup occurred, it apparently was not enough to disrupt shipping plans after Jan. 1.
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