Logistics Update 

Week of October 26

October 27, 2020

Written By: Peter Rio

TLI STATE OF TRANSPROTATION UPDATE

 

The current unprecedented capacity crunch has continued into October 2020, with no end in sight as we approach another end of month rush and begin the holiday season.  

 

LTL Weekly Summary:

LTL carriers continue to face an overwhelming demand for their services while they attempt to prevent further degradation of their on-time performance levels. Overall, on-time delivery seems to have reached its low point and is starting to trend in the upward direction as many major LTL carriers have successfully eliminated unprofitable freight from their networks and deployed additional capacity.

 

Larger spot market volume quotes continue to remain expensive, as LTL carriers do not have room in their networks to discount these large (5+ pallets) and heavy (over 5,000 lb) shipments on their trucks. The LA Basin in Southern CA remains one of the most challenging areas of the country for LTL service, with continued missed pickups and late deliveries in and out of these terminals.

 

Truckload Weekly Summary:

Truckload tender rejections by contracted carriers reached nearly 25% according to FreightWave's Sonar, causing more and more truckload freight to flow into the spot market. Due to record demand, spot truckload freight continues to be extremely expensive for shippers, which is now carrying over to the spot intermodal market as well. The spot market is still in unprecedented territory, and no one expects spot pricing to begin a descent anytime soon.

 

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), Eastern PA, Pacific Northwest, Dallas TX, Denver CO, Atlanta GA, Chicago IL


Estes Express Lines recently embargoed all transactional blanket freight originating from Southern CA zip codes 900-908, 910-918, 922-928, 930 and 935. This is an attempt to balance their capacity in the area, making room to provide better on-time pickup service to larger customer specific pricing accounts.

 

SAIA recently embargoed all transactional blanket freight inbound to their Allentown PA terminal, as they attempt to balance their capacity and rebuild on-time service levels. Their hope is to get caught up quickly so this embargo may be lifted.

 

COVID-19 confirmed cases amongst truck drivers were up 9% last week. We encourage our clients to stay diligent with your driver check-in processes, maintaining proper social distancing and touchless contact methods whenever possible.

 

2021 Freight Budgeting remains a challenge for shippers, as significantly increased freight rates are expected to continue into the fall of 2021. We encourage you to consult your TLI Account Manager for assistance as you build these freight cost projections for the coming calendar year. Many shippers are referring to their 2021 freight budget as a "code red" scenario.

  

Your team at Translogistics will continue providing you with weekly updates throughout the current unprecedented capacity crunch. We have been speaking with many of you regarding the recent sharp decline in your overall carrier service levels, beginning in early June and continuing through July, August, September, and now October. Please be assured, these poor services levels are not specific to your account rather an industry-wide problem we are all facing together right now.

 

We encourage you to continue to check our Translogistics Blog regularly, as we will be posting industry or carrier updates as we receive them.

 

http://blog.translogisticsinc.com/

 

Sincerely,

 

Your Team at Translogistics

610-280-3210


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For the latest insights, tips and commentary surrounding the logistics industry, look no further.  Shippers will find thoughts from the award-winning team at Translogistics covering everything related to your transportation processes and plans.  If you have a question we are readily available at insidesales@tli.email 

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