TLI's Weekly State of Transportation Update
Week of June 21, 2021
Shippers typically see tighter capacity in the weeks following Memorial Day weekend. However, this year capacity remains unchanged in the third week of June as the holiday weekend is approaching.
LTL carriers are still working to alleviate tight capacities in their networks. One common cause of this is shippers utilizing the LTL network for what used to be truckload shipments. As shippers start to push larger size shipments, the linehaul capacity becomes tighter.
SAIA Freight is the most recent LTL carrier to place restrictions ahead of the end of the month/quarter. The team at SAIA advised a restriction on shipments 15,000 lbs or over to help alleviate their linehaul capacity for the next two weeks. TLI is monitoring this situation and will advise impacted customers.
Typically, capacity worsens in the weeks between Memorial Day and July 4th weekend. However, the capacity seems to be unchanged in the past couple weeks. This is leading experts to believe a “Dead-cat Bounce”, or a temporary, short-lived recovery, is occurring ahead of the end of month/quarter and July 4th holiday weekend.
Flatbed market posted a 65.45 national load-to-truck ratio this week, the lowest it’s been since April. Dry Vans are still fluctuating between 4 – 5 loads per truck nationally while Reefers increased from 9 to 11 loads per truck nationally as we head into the hotter months.
As June is winding down, shippers should be aware of end of month/end of quarter. Capacity is very tight in the industry and economists are expecting this end of month to be especially tight with end of quarter and tight capacity in LTL/Truckload carriers. TLI highly suggests moving freight now to avoid the congestion.
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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