Logistics Update 

TLI State of Transportation - Feburary 15

February 16, 2021

Written By: Peter Rio

TLI STATE OF TRANSPORTATION UPDATE

Back to Back Winter Events Impacting Transportation Networks & Causing Severe Delays

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The continued winter weather events across much of the country have reminded all of us how quickly bad weather can severely impact our supply chains.

 

LTL Weekly Summary:

The widespread winter weather events continue to worsen overall LTL service levels for both pickups and deliveries. Carriers are attempting to keep freight moving across their networks, despite terminals being closed or services limited due to weather. Heading into this week, many carriers are implementing widespread winter embargoes on “Protect from Freeze” shipments, where due to brutally cold temperatures the freight simply cannot be kept from freezing. Several carriers have announced a complete network-wide freezable embargo effective through at least this Friday 2/19.

Please be sure to reach out to your Translogistics team for extra assistance on any freezable freight you may need to move this week!

  

Truckload Weekly Summary:

As reported over the past few weeks, the truckload market has begun to find an overall balance with a slight decline in shipper demand. The truckload markets reached an inflection point last week, where dry van and reefer contracted truckload rates are now higher than spot market rates for the first time in seven months. However, spot rates have not been falling sharply, as shippers begin stocking warehouses with spring inventories ahead of Chinese New Year. 

Intermodal service is still struggling greatly to provide on-time service, as local drayage capacity at pickup and delivery remains a challenge for all providers. Shipments are seeing delays of 1-2 days compared to the carrier’s published service standard, many of which are being caused because of the carrier missing the pickup on the front end one or multiple days.

 

International Ocean/Air Weekly Summary:

Several dozen inbound cargo ships continue to sit in the CA harbors waiting to be unloaded, as US companies urgently await their imported goods.  Many shippers have freight just sitting in the ports waiting to be loaded onto the rail or become available to discharge via truck. Due to the severe delays with ocean transit times, many shippers are attempting to bring smaller quantities in via air freight. However, air freight rates continue to be at record high levels due to widespread distribution of the COVID vaccines and a large increase in overall demand.

 

It is critical that you provide your TLI team with as much notice and flexibility as possible on any freight you may need to move in order to allow us to book the best carrier option at the best rate.

Providing our operations team with a MABD (must arrive by date) will allow them to secure the most cost-effective option for each shipment.

 

Your team at Translogistics will continue providing you with weekly updates throughout the current unprecedented capacity crunch. Please be assured, poor carrier services levels and delayed shipments are not specific to your account rather an industry-wide problem we are all facing together right now. This tough market environment is expected to continue through the first two quarters of 2021.

We encourage you to continue to check our Translogistics Blog regularly, as we will be posting industry or carrier updates as we receive them.

http://blog.translogisticsinc.com/

Sincerely,

Your Team at Translogistics

610-280-3210

 

*article written by Peter Rio, Direct of Logistics, Translogistics Inc. Any questions, please do not hesitate to reach out!

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For the latest insights, tips and commentary surrounding the logistics industry, look no further.  Shippers will find thoughts from the award-winning team at Translogistics covering everything related to your transportation processes and plans.  If you have a question we are readily available at insidesales@tli.email 

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