Translogistics Blog

Higher Spot Rates AND More congestion Caused by Hurricane Ida

August 31, 2021

Written By: Mitch Kinek

TLI's Weekly State of Transportation Update

Week of August 30, 2021

 

 

Hurricane Ida assists in congesting the LTL network and aids in rising rose spot rates in the truckload market. Along with Hurricane Ida restrictions, more LTL embargos have been created to help alleviate the market.

 

Less-Than-Truckload:

Hurricane Ida puts another strain on the southern market. Terminals in the LA, MS, TX and southern regions have announced limited to no operations on Monday, August 30. As Hurricane Ida starts to calm down, shippers may still seem some strain to their supply chain due to terminal backup from these limited operations.

 

LTL carriers continue working through capacity issues on a terminal, shipment, and day-to-day basis. Weekly updates/directions are given by carriers to help alleviate their terminal which may include: freight embargos, dimension/quantity restrictions, and transit delays. TLI is actively monitoring these situations and will update any affected customer with solutions.

 

Below are the latest LTL embargo and restrictions. New updates are italicized:

 

ESTES Express: OB Canada to US, IB/OB to Dallas-Nashville-Memphis Terminals (capacity related), IB/OB to Washington-Oregon States, Areas affected by Hurricane Ida (MS,LA,AL), Guaranteed service suspension for Mobile, AL-Fort Worth, TX - Sacramento, CA - Tucson, AZ - Estes Service Advisory

 

R&L: No shipments over 10,000 lbs and/or 8+ pallets (effective 6/1/2021)

 

UPS/T-Force: No shipments with a piece of 10 ft long (driver discretion) (effective 6/1/2021)

 

Roadrunner: IB to N. NJ, NYC, and Long Island NY (Effective 7/26/2021)

 

SAIA: Embargo to/from Metro Points in: Detroit MI -Seattle WA - Portland OR - Sacramento CA - Minneapolis MN, Areas affected by Hurricane Ida (MS, LA, AL) (Effective 8/30/2021)

 

 

Truckload:

The spot market rose about 10% last week across all equipment types, according to the DAT. The Labor Day weekend tied in with Hurricane Ida helps drive these higher rates in the spot market. As damage from Hurricane Ida is still being assessed, the market may see a shift of drivers aiding the FEMA relief and tighter truckload capacity during the time of relief.

 

International:

Ports across the nation have been backed up with no current sign of easing up. US imports from China have been gearing up ahead of the holiday-season. Cost-per-container has risen to records high above $20,000 per container from U.S. to China. Some factors that have caused recent spikes are shutdowns from COVID 19-Delta variant and typhoons affecting the coast of China.

 

Ports on the East, West, and Gulf coasts are still experiencing back ups. Check out this video from 8/15.

 

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!

 

Translogistics' Industry Chart of the Week

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