TLI's Weekly State of Transportation Update
Week of July 5, 2021
The end of the July 4th holiday typically means an immediate drop in demand and rates, however the unprecedented times continue as capacity remains tight across all modes. Truckload giants Knight-Swift Transportation and Werner Enterprises announced acquisitions in the last week.
LTL carriers are still working through capacity issues through a terminal, shipment, and day-to-day basis. New updates/directions are given by carriers to help alleviate their terminal that may include: Freight Embargos, dimension/quantity restrictions, and transit delays. TLI actively monitors these situations and will update any customer affected with solutions.
In this unprecedented time, guaranteed shipments may be the best option for critical shipments. While LTL carriers may not be able to honor these time constraints, adding these services does bring higher visibility and urgency for your shipments to move as quickly as possible.
Historically, the weeks following the July 4th weekend show a drop in overall demand and rates. However, just as we saw in 2020, there may be unprecedented waters for the month of July. Capacity is still as tight as can be, but there are signs that the industry may start to see more drivers with over 24,000 transportation jobs being added in June, according to DAT.
Two big acquisitions were announced over the past week:
Truckload giant, Knight-Swift Transportation, announced Tuesday that the company will be entering the LTL ring after purchasing AAA Cooper Transportation. According to reports, the LTL carrier will continue to run as a stand-alone division in Knight-Swift’s program with the current AAA Cooper CEO still in leadership.
Werner Enterprises announced last Thursday that the company acquired an 80% stake in ECM Transport Group. ECM Transport Group has a portfolio of regional carriers in which include ECM Transport and Motor Carrier Services of Pennsylvania. More on this acquisition can be found here.
TLI is actively monitoring situations in the industry, such as acquisitions, embargos, and other industry disruptions. If a TLI client is directly affected by any of these events, your TLI representatives will reach out to discuss what this means for your account.
TLI highly suggests that on all shipments you provide our team with the “Must Arrive by Date” (MABD) as to when you need the product delivered. This will help us select the proper transit time / equipment type at the best current freight rate.
Please contact your Translogistics team at 610-280-3210 for any further questions.
*article written by Mitchell Kinek, Inside Sales Executive, Translogistics. Any questions, please do not hesitate to reach out!
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