The Weekly Freight Report for August 11th, 2022

The Top Headlines in Freight, Transportation, & Logistics from FLS Transport

The FLS Weekly Freight Report covers the week's top news in logistics, transportation, shipping, and freight. This week's report covers wood-pellets are a hot commodity, trucker-friendly states give diesel tax holidays, FedEx releases their peak season start date and prices, the new logistics corridor with its sprawling warehouses, and end-of-year capacity predictions.

  1. HOT COMMODITY | The US wood pellet business is on fire.
  2. TAX HOLIDAY | Which states have “trucker-friendly” diesel gas incentives and discounts? 
  3. PEAK SEASON PRICES | FedEx moved up its peak season start date and released surcharge pricing. 
  4. SPRAWLING WAREHOUSES | Which state has become the new logistics corridor for industrial warehouses? 
  5. CAPACITY PREDICTION | What are experts saying about shipping capacity for the rest of the year?

HOT COMMODITY | The US wood pellet business is on fire.

Hot commodity wood-pellet business Diesel Tax Holiday FLS Transportation

US companies manufacturing wood pellets exported a record-breaking 7.4 million metric tons last year at an average price of $170 a metric ton.  

Other than using these pellets in your fancy grilling smokers, wood pellets are the fuel for power plants in Western Europe rather than coal. 

So what is the future forecast for this particular commodity? 

Find out here.


TAX HOLIDAY | Which states have “trucker-friendly” diesel gas incentives and discounts? 

Diesel Tax Holiday Hot commodity wood-pellet business FLS Transportation

Almost everyone moving freight has been holding their breath over the exorbitantly high gas prices plaguing the US this year for fear that it would cripple the trucking industry. 

Diesel gas prices rose from $2.681 per gallon in Jan 2021 to $5.754 per gallon in June 2022.

Well, many truckers are breathing a sigh of relief as some states have instituted “trucker-friendly” tax breaks and per-gallon price reductions. 

The states that are now “trucker-friendly” are found here.


PEAK SEASON PRICES | FedEx moved up its peak season start date and released surcharge pricing.

fedex peak season prices new logistics corridor FLS Transportation

Last Friday, FedEx released a table detailing this year’s peak season charges and said the new prices would start on Labor Day and run through January. 

Historically, peak season began in October, but the company has moved the date due to demand. 

Even “Ground Economy” shipments will have three different phases of pricing and surcharges. 

Find out how much you can expect to pay for shipping this holiday season and the dates you need to ship by here.


SPRAWLING WAREHOUSES | Which state has become the new logistics corridor for industrial warehouses?

new logistics corridor fedex peak season prices FLS Transportation

Companies choked by the supply chain constraints and high warehouse rents in southern California have found a new home in Glendale, AZ. 

The Loop 303 freeway in Glendale, AZ, has become known as the Phoenix Logistics Corridor as row upon row of industrial warehouses and distribution centers sprawl across the desert. 

Phoenix has become the 3rd busiest site for new logistics activity behind Chicago and Dallas-Fort Worth. So, how much space is available to lease? Find out here.


CAPACITY PREDICTION | What are experts saying about shipping capacity for the rest of the year? 

capacity predictions forecast weekly freight report shipping logistics FLS Transportation

Depending on your business, transportation capacity could be tight or loose based on any number of factors. 

Some shippers anticipate contract rates to see a sharp decline… but that might not be the case as we approach peak season. 

Experts from Michigan State University and the University of Tennesee stated that shippers would not see a rapid decrease in their transportation budget spending this year. 

Find out why these experts believe this and its impact on your transportation budget here.


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