AAA Daily Fuel Gauge Report for Friday, 11/18/22

American Dollar to Canadian Dollar = 0.730441; American Dollar to Chinese Yuan = 0.137735; American Dollar to Euro = 1.068884; American Dollar to Japanese Yen = 0.006294; American Dollar to Mexican Peso = 0.054732.

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 1.2% in July after falling 2% in June. In July, the index equaled 109.8 (2015=100) compared with 111.1 in June. “Softness in tonnage over the last few months is due more to supply constraints, rather than a big drop in freight volumes,” said ATA Chief Economist Bob Costello. “Not only are there broader supply chain issues, like semiconductors, holding tonnage back, but there are also industry specific difficulties, including the driver shortage and lack of equipment. For-hire truckload carriers are operating fewer trucks than a year earlier. It is difficult to haul significantly more freight with fewer trucks and drivers. “In addition to these supply issues, retail sales and housing starts, both large drivers of truck freight, retreated in July, although both rose on a year-over-year basis,” he said. June’s reading was revised down to -2% from our July 20 press release. Compared with July 2020, the SA index fell 2.9%, which was the first year-over-year drop since March. In June, the index was flat from a year earlier. Year-to-date, compared with the same seven months in 2020, tonnage is down 0.2%.

Gildan Activewear is buying HanesBrands for $2.2 billion, the two companies said Wednesday. The deal consists of 87% stock and 13% cash per every HanesBrands share, with the cash portion anticipated to be about $290 million. Gildan will pay for HanesBrands through $2.3 billion in transaction financing, through bridge facility and term loans. The deal implies a $4.4 billion enterprise value for HanesBrands. Gildan CEO Glenn Chamandy said the combination will double Gildan’s revenue and create “scale that distinctly sets us apart.”