The Top 5 Stories in Freight
Here’s what’s happening this week:
- West Coast ports flood as peak season shows no mercy
- Chip shortage to worsen as COVID hits Malaysia hard
- Dry bulk rates soar as commodities rebound
- Mini bids are becoming a permanent part of truck contract fixture
- TL market is boiling with no end in sight
The hottest stories in freight can be found here, in the Weekly Freight Report:
1. West Coast ports flood as peak season shows no mercy
“Shippers not only experienced escalating spot and contract rates in July, they were hampered by port congestion, unloading delays, shortages of trucks and drivers, and more recently tighter intermodal capacity,” says a DAT executive. Shippers are facing premium trucking prices as holiday merch floods West Coast ports. DAT forecast data shows little relief as delayed ships lay anchored and chassis trailer shortages deepen. Check out the full report here.
2. Chip shortage to worsen as COVID hits Malaysia hard
The number of COVID-19 infections is surging in Malaysia, threatening to aggravate shortages of semiconductors and other components that have hammered automakers for months. And while executives are hopeful operations will be back up and running by the end of the month, the backlog is going to make it incredibly difficult for car manufacturers to serve their customers. Get the details here.
3. Dry bulk rates soar as commodities rebound
“Demand is off the charts” says a managing director. Monday marked the 10th consecutive increase for the Baltic Dry Index, a benchmark measure of commodity hauling costs that has surged to an 11-year high. And as long as a strong commodity market backdrop remains, rates are likely to stay firm. Get the details here.
4. Mini bids are becoming a permanent part of truck contract fixture
Mini-bids are becoming a long-term part of trucking procurement for US shippers as supply chain disruption caused by the COVID-19 pandemic extends into the second half of 2021. However, the nature of those mini-bids, which became widespread last year as truck rates rose rapidly, is changing. Check it out.
5. TL market is boiling with no end in sight
“Demand is overwhelming” says an anonymous carrier. And even though there is a driver shortage, Morgan Stanley’s TL report indicates there will likely be no abatement in freight demand and shipper requests through the end of 2021. And with less drivers behind the wheel of trucks, rates will continue to soar for shippers. But in this day in age, if shippers are able to get a truck, they aren’t complaining about the price. Get the details here.
Need help moving freight across North America? FLS can help. Our network of 54,000 carriers and 400,000 trucks is a great asset to any shipper… and our service levels are impeccable. Give us a try… Get a quote today!