♪ romaine: u.s. stocks have gone back to july with earnings out. they were solvent and you had better than expected sales data but there was concern during the week with ceos of bank of america, morgan stanley, goldman sachs expressing worried about

inflations. today we will dig deeper into that with regards to the trucking industry and out -- how it plays a role in the issues. we will talk about that and how the company is still managing to deliver and how women drivers can play a role in addressing the crisis. a lot to talk to and a short amount of time. let's start off with a strong demand for trucks. taylor: did you know the terminal is so cool there is a spot for trucking demand index? there is wind. take a look at this. since 2014, you're up 622% on this index. what is interesting is the blip on the right, it fell on a week over week basis. it is relatively strong for seasonality. they demand and limited driver capability. it is up three times on average this year it so you are seeing a lot of big numbers coming out of the index.

one company we talked about is jb. we heard from them earlier today. i want to bring in our analyst to break down the earnings and this index that we have. what stood out to you when it comes to jb and the pricing power this company has? is --lee: they have delivered great results in their businesses and their results were fueled by strong pricing. that chart that you pulled up is one of the largest load boards and the u.s. and that measures relative supply and demand in the stock market. that strong stock market drove rates higher. the contractual rates were able to increase for jb henan there trucking business by 29%. that is impressive for them. that is really showing you the fact that capacity is extremely

tight. we think and seth says continues to underestimate -- consensus underestimates the trucking industry. as an add to that, companies like xp oh outgroup -- xpo outgrew. the problems facing the trucking industry in terms of getting but in the seat are not going away anytime soon. it will remain tight until 2022. caroline: talking about how they are increasing wages, non-driver personnel salary and wages. they are still managing to boost revenue by 17%. there cost impacts they are seeing. they paint it forward. they say they can't get butts in seats. will people be able to follow these increased prices? lee: if you want something delivered from point a to point b, you do not have a choice.

it is a free market. they need to attract drivers. having driver turnover over 100% is normal for the industry. it is higher than that now. a lot of people get into the industry and they might drive a truck for a couple of months and realize it is not for them because it can be demanding. you are away from your family a long time and sometimes, the pay for the work is not worth it for a lot of people and right now, there are a leather -- a lot of other alternatives for people to drive trucks. they can work construction, manufacturing, warehousing. everyone is paying up for labor. jb hunt highlighted that on their call saying it is not just them facing labor issues. there are supply chain problems. it is not being able to find warehouse workers in the shippers turning the assets quick enough because they do not have people.

the labor shortage is a problem. it seems like a blip. it seems like the only way to help is to increase wages or make the work life balance better for truckers. romaine: great to talk to you. analyst breaking us down an aspect of this jb hunt earnings. we want to dig in deeper to the supply chain issues. recently launching a predictive rate index with logistics platforms afs and that is where we want to start. with regards to how that type of data can maybe --the people who are shipping things, plan a little bit better, anticipate what can go right and wrong. what are they facing? jason: sure. we recently launched and they are one of the businesses.

they see over $10 billion clo sing their network annualized. we tracked three different industries. truck loading industry, frontload industries, and the parcel side. all three indexes are pointing to higher pricing here in 4q. if we look on the truck load side, we are looking at 2.2% increase over the 2018 index baseline. that is up from 21% increase. you're seeing a sequential increase, less than truckload up 32.3%. that is up two .1% from much later all third quarter. we are seeing the right pricing. we also hosted a private trucker and logistics call earlier today and wrote a note about it. some interesting aspects out of that is you are seeing a lot of trucking companies go away from annualized pricing toward

quarterly pricing. because they cannot even hold or guarantee their rates for a year given the volatility we see in the marketplace. the outlook for 4q from private carriers on our call was price increases off of double-digit price increases of somewhere in seven to 10%. . taylor: i don't want to conflate two different topics so correct meet but we were speaking earlier with our guest, talking about --and at some point they said the input cost has gotten too high. even though there is a lot of demand, it does not make sense for them to produce. are there any parallels to what you are seeing in the industry where it is the input cost, labor, wage, fuel or too high? it does not make sense or is there so much pricing power the demands and the pricing is there? jason: in some cases, certain

commodities or goods that have very slim margins that we would not consider essential goods might be left on the sidelines. quite frankly, when you think about the trucking industry, the american trucking association used to have a great slogan. without trucks, america stops. we have to go from point a to point b with goods. i have been around freight for many years and worked in the trucking sussed -- sector and i learned the freight will move. that is what i think we will see going forward. the supply chain has been congested so in the beginning of this year, this is a new phenomenon. it is making all the news right now. it is starting to impact people in their daily lives and starting to impact companies the on the transportation sector. romaine: don't get romaine started -- caroline: don't get romaine started. all of us are experiencing this.

we were just seeing pictures there of what the ports look like and what the ship containers seem like and i want to get your input. when you talk to these private companies, what are they saying they are seeing? what are they saying are real issues at play to get our freight and goods to us? jason: it is a variety of issues. it is not just one thing. i want to start off by saying i'm glad the administration has taken notice and are trying to take steps toward alleviating these problems right now. we had somebody on the call -- it was a private trucker and with logistics call --and he was the largest private consolidator of containers. very active on the port side. he said it is nice. what we will have issues with is getting trucks in and out of the ports. trucking companies now have a hard enough time getting guys working from inside, let alone

asking them to work weekends or work at 2am. . that is a major issue. the other issue is because we are so constrained with getting new equipment, orders are backlogged. people thought they would get deliveries of trucks in june and are hoping they start seeing those by december. what that is causing is an aging in the fleet and they are trying desperately more miles on order trucks and they need more parts. the issue now is they are seeing parts are backordered and some of the fleets are parked and having to pay drivers because they don't have trucks. romaine: if one little thing goes wrong, everything goes wrong. great research by your team. keeping an eye on that with the freight index. driven by applied machine learning. we will catch up with him shortly. we heard another wonderful voice earlier. the ceo of goldman sachs, david

solomon, talked about these issues. we can play that. take a look. david: there is real wage inflation across all aspects of the economy right now and certainly, because of supply chain strength and other inputs, a variety of products and services. i think this is something to watch closely. it is not baked in the cake as to how it will play out and whether or not it would be a significant issue as we go forward. it is definitely inflation. ♪

mark: the justice department will ask the u.s. supreme court to lift texas's ban on abortions after the sixth week of pregnancy, setting up a showdown they to determine whether the

law stays in effect through the end of the year. last night, a federal appeals court that the law state in effect as the case goes forward. the united states is moving to expand travel options for those who are vaccinated and clamp down on those who are not. starting november 8, the u.s. will open its borders to vaccinated foreign travelers. the measures are the biggest changes to u.s. travel policy since the early days of the coronavirus pandemic. the old system barred most foreign nationals coming from certain places such as europe, india, brazil, and china. a british member of parliament has been stabbed to death at a meeting with constituents. authorities say david amess was treated at the scene of the attack but died there. a suspect has been arrested and he is 69 and had been a conservative mp since 1983. former president barack obama was in the united nations

climate summit next month in glasgow, scotland. the white house once to plug the meeting with big names to show u.s. commitment to curb global warming. he will meet with young activists and deliver remarks on the threat posed by climate change during his time in scotland. global news, 24 hours a day, on air and quicktake powered by more than 2700 journalists, analysts, and over 120 countries. i am mark crumpton. this is bloomberg. ♪ romaine: we are focused on disruption in the global supply chain. it is something we have been talking about a lot all week long. we are talking it -- about it into the future but this is the conversation about what the solutions can be. caroline: jb hudson and they are having incentive pay but what about turning to people who haven't driven trucks? it is amazing how few women

drive trucks. not surprising when you understand the hours and days away from family but we are seeing their only 67% of the industry. how can they change the perception of this? we have to remember trucks are three quarters of the u.s. taylor: reading research about truck drivers and one third of the women in executive teams within the trucking industry,there is movement as we think about women in the industry. let's do it all with ellen, the president of the women in trucking association. start us out about the improvements we have seen and where the opportunity lies for women in the trucking industry. ellen: the industry has changed

a great deal in the past number of years and it is not your old grandpa's job anymore. the trucking industry has changed its equipment and its routing and time. it has changed the trucks so that women are more comfortable and ergonomically suited. it is really changed but the perception of the industry has not changed and that is one of our biggest issues. caroline: how are you tackling that? is it marketing or word-of-mouth? one of the best ways to make sure people realize it is more inclusive and comfortable? ellen: we have an image team in the u.s. and canada and they do ride along with officials and regulators and media and so they tell a story. we have a member -- we are breaking out our new drivers ambassadors tractor-trailer that will be driven by a female driver around

the country to talk about careers in transportation and it will be a hands-on learning environment complete with the simulator. romaine: talk about the companies themselves and how receptive they have been to this. there is a sense of desperation in needing more workers but before the current crisis we are in, there have been a lot of talk about trying to recruit a more diverse workforce in the trucking industry. ellen: many years ago, carriers said they hired the best person and they were not focused on gender diversity, age diversity, ethnic diversity, but they see the value women bring to the industry. female commercial bride -- drivers are safer drivers. male commercial drivers are 20% more likely to be involved in a crash in every city -- statistically significant area. right off the bat, women are safer drivers because they are more risk-averse. women are better with their

customers. easier to train because they want to learn and they know they need to prove themselves in order to get -- taylor: we talk about a labor shortage, what an opportunity it can present to get more women in the industry but i'm curious how you are thinking about where other competitors. is it uber or bus drivers? there are other places they feel like they have better safety and hours. ellen: you would be surprised where drivers come from. we have nurses and attorneys and ceos from companies who want to get away from working in an office. we get a lot of women who come in from driving school buses and want to earn better living. at some of them have driven commercial buses like transit or cities.

we get women from all areas. 82% of women who come into the industry do so because of a family member or friend. typically that is a husband or boyfriend any average female driver is 50 years old. that means she has raised her family and can get out and travel in see the world and guess what? the women make the same amount of money as men. caroline: good bit of equality. you were saying that sometimes it is a lifestyle question. what are the ways in which you can dispel -- or is there a myth or is it true that you are on the road from day-to-day? is there a way no trucking is like that? his ellen: that is the misconception. if you go to a large carrier, you will be gone a while that there is many jobs. you can deliver parts in a city. you can do intermodal and pick up shipments with supply chains.

the people who go to the rail yards are home every day. same thing for the cargo ships could their home much more often. you can still have a worklife balance and a family and make a good living. caroline: fantastic pictures of proud women outside their trucks. hopefully changing the perception of what it would be like to work in the industry. stay well. thanks you, president of women in trucking association. amazing and continuing the coverage, we will be honored throughout supply chains. romaine and i will be at the port of long beach next thursday with guests focusing on all things from backlogs to labor shortages. romaine: that's the first thing i will do is walk around the shore. in all seriousness, it will be interesting to get perspective here because it is not just the trucks. it is the rail yards coming in.

even when you get the trucks coming out, you have to deal with traffic issues and other stuff. taylor: we are not in final thoughts yet. romaine: i'm still confused. taylor: is the show over? yes it is over. no. ♪

♪ ♪ romaine: great conversation today specifically and the trucking industry. diversifying the workforce could be a solution for trucking with women. at the end of the day, it is really --if one thing goes wrong in the supply chain, everything goes wrong and there needs to be coordination to get this back on track. caroline: it is interesting.

we had gina raimondo saying temporary. what is temporary? is this will be the problem until 2023? taylor: she has been saying temporary for a year. caroline: that was what was interesting. episodic. jason was saying this has been going on for months -- 6 months. it is only now we are setting a light on it because we are worried about halloween candy. romaine: your 70 once days from crisp -- 71 days from christmas. you have people now who have started to go, let's start shopping for christmas. get what you want here. it brings out the issues, will we make longer-term changes? changes that will be lasting so this doesn't happen again? is this just the way it is? taylor: we heard if we stop cutting the fat off of everything and running at such

big margins, this would not happen. caroline: it is sort of macro. taylor: that is a bigger conversation that will not be solved. caroline: we are going to try and solve it on thursday. taylor: i am so excited for your show next thursday and friday. it will be wonderful. caroline: we will miss you after monday. the cameras will be with you. this is bloomberg. ♪

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