Logistics Update

TLI State of Transportation Update

October 6, 2020

Written By: Peter Rio

Last week's end of month/end of quarter rush proved challenging for many carriers and shippers alike, due to the current capacity crunch. LTL networks were extremely stressed with end of month pickup requests and record numbers of deliveries. Truckload rates continued to climb, as load-to-truck ratios showed that capacity remained tight on the spot market. The pace of spot truckload rate increases slowed for dry van and reefer freight, but flatbed increases continue to surge.

Some of the most recent notable events in the freight industry were as follows:

Continued Freight Hotspots: Eastern PA, Pacific Northwest, Dallas TX, California, Denver CO, Atlanta GA, Chicago IL

Additional Carrier Restrictions: LTL carriers continue to publish more and more restrictions about the type of freight they are willing to handle in today's extremely tight freight market.

Some recent examples of additional restrictions are:

SAIA increasing their standard overlength accessorial charges effective 9/29 in each of their excessive length tiers, to further limit the amount of overlength freight they are being  tendered by shippers

Estes requiring that their 3PL partners who are utilizing their transactional blanket pricing programs must reduce volumes by 50% compared to their normal shipment levels, otherwise double digit increases in costs will be mandated

Truck drivers seeking short-haul jobs: As e-commerce continues to redefine the transportation marketplace, more and more US truck drivers are seeking short-haul driving jobs versus long-haul over the road. This only continues to decrease an already slim over the road driver pool, which in return requires long-haul carriers to pay more to find and retain drivers. These increased costs are ultimately passed down to shippers.

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, and September. Please be assured, these poor services levels are not specific to your account rather an industry-wide problem that 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.

Your Team at Translogistics

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Categories: Awareness

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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