Translogistics Blog

Shippers Continue to Deal with Tight Capacity and LTL Embargos

June 8, 2021

Written By: Mitch Kinek

TLI's Weekly State of Transportation Update

Week of June 7, 2021

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After the Memorial Day holiday, the market is seeing a little free up in Dry Van capacity. However, the LTL and flatbed market are still constrained with tight capacity.

 

Less-Than-Truckload:

The latest LTL carrier to place an embargo is T-Force Freight (Formerly UPS Freight). The LTL carrier placed an embargo on picking freight up destined to specific Colorado, Idaho, and Oregon zip codes. For specific zip codes affected, you can view more information here.

 

This embargo may put strain on all shipments going out west. With T-Force Freight trying to alleviate their terminals, freight will begin going through other carriers that may cause delays in transit to these and surrounding locations.

 

Truckload:

Flatbeds are still a hot commodity in the truckload network with the national average over 79.22 loads per truck with some areas more than 400 loads per truck to start the month of June. This capacity crunch is expected to continue as we head into the summer months and construction has begun.

 

According to FTR, The Shippers Conditions Index (SCI) has been improving, however there should be no expectation of a "Rapid Improvement" in the industry overnight. The industry is still dealing with driver shortages and tight capacity.

 

Intermodal:

Intermodal transportation has been very tight as more shippers are utilizing the rail. According to FTR, intermodal rate increases are expected to peak 10-15% in the next month or two. However, the projected outlook also had intermodal rate increases slowing down towards the end of year and projected to decrease in 2022.

 

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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Translogistics' Industry Chart of the Week

Flatbed Capacity Chart - DAT

 


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