TLI's Weekly State of Transportation Update
Week of April 19, 2021
Total spending on freight in March rose 27% year-over-year and 8% month-over-month, according to Cass Information Systems.
LTL Weekly Summary:
Several carriers reported having record high shipment days and/or weeks for their organizations last week, showing just how busy things are in LTL shipping. This huge demand for LTL service continues to result in poor on-time delivery performance (averaging 60%) and record levels of missed pickups (5-10%), especially on oversized and overlength products. Spot market volume/partial rates continue to climb as carriers simply do not have capacity to haul these larger LTL-type moves.
Truckload Weekly Summary:
Truckload spot market demand rose significantly in March, as normal spring seasonal spikes accompanied by backlogged freight due to the significant weather events in February greatly tightened the marketplace. Truckload rates remain at decade-high levels, with quoted freight charges shocking many shippers who are attempting to find available capacity for their loads. Rates in most major freight markets continue to accelerate upwards with no end in sight.
International Weekly Summary:
Global container pricing continues to remain at record high levels, as container capacity is extremely scarce. Available booking space to secure a spot on a vessel can often be weeks out from request date, causing significant delays just to get shipments moving. Ocean rates are still expected to rise 100-125% in 2021.
Air networks remain jampacked with shipments, as many passenger flights remain idled due to COVID. Shipments that depart and arrive on-time often experience immediate backlogs just to be processed by the airline facilities and made available for pickup before final delivery can be made. Many shippers continue to result to expensive air freight just to get their products to the desired location in order to keep production lines flowing.
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, which will help us select the proper routing at the best possible freight rate.
Please contact your Translogistics team at 610-280-3210 for any further questions.
*article written by Peter Rio, Director of Logistics, Translogistics. Any questions, please do not hesitate to reach out!
Translogistics' Industry Chart of the Week
Dry Van Spot Truckload Rates