TLI STATE OF TRANSPORTATION UPDATE
The current unprecedented capacity crunch has continued into November, with no end in sight as we begin the holiday shipping season.
LTL Weekly Summary:
LTL carriers remain extremely busy heading into November. Carrier on-time performance levels seem to have reached their all-time low point and a slight rebound is beginning to be seen with many of our client metrics. Carrier damages and freight claims continue to trend upwards as staffing issues remain a challenge for carriers.
The LA Basin in Southern CA remains the most challenging area of the country for LTL service, with higher than normal missed pickups and late deliveries in and out of these terminals. More and more carriers are issuing embargoes within their networks so that certain terminals can get caught up on backlogged freight.
Truckload Weekly Summary:
Truckload and Intermodal capacity continues to be tough to find and very expensive. Although the rate of change for rate increases has slowed, the spot market rates have reached new all-time highs. It is critical that you provide your TLI team with as much notice as possible on any truckload or intermodal freight you may need to move.
Some of the most recent notable events in the freight industry were as follows:
Continued Freight Hotspots: Los Angeles CA Basin (by far the tightest market in the country for LTL), Colorado, Eastern PA, Portland OR, Washington, Dallas TX, Atlanta GA, Chicago IL
Ward Trucking announced increasing their maximum standard LTL shipment size to 8 skids or 14,000 lbs. Previously any LTL shipment over 6 skids or 12,000 lbs would not be picked up due to tight capacity. However, their volume/spot quotes are still limited to a maximum of 6 skids or 12,000 lbs.
Colorado Wildfires continue to create ongoing challenges for freight shipments in this area. Specifically, shipments coming from or destined to zip codes 804-805 are being delayed or embargoed by the LTL carriers since many of these areas have been evacuated.
Eastern Alabama, Mississippi, and Western Florida continue to have a very harsh hurricane season, as Hurricane Zeta made landfall last week. Freight in and out of these areas continues to be delayed due to weather events.
Thanksgiving is in two weeks and it will be the end of the month. TLI suggests getting any and all orders routed out as rapidly as possible. Many drivers may find themselves on vacation, so this could lead to potentially higher rates.
Your team at Translogistics will continue providing you with weekly updates throughout the current unprecedented capacity crunch. Please be assured, poor carrier services levels are not specific to your account rather an industry-wide problem we are all facing together right now. This tough market environment is expected to continue well into 2021.
We encourage you to continue to check our Translogistics Blog regularly, as we will be posting industry or carrier updates as we receive them.
Your Team at Translogistics
Translogistics' Industry Chart of the Week