The Top 6 Stories in Freight
There's no summer slump this year… carrier pricing power is at an all time high… the intermodal appeal is back… higher insurance rates are passed on to shippers… and NAFTA 2.0 brings on some new cross-border rules. The hottest stories in freight can be found here, in the Weekly Freight Report:
1. Freight Volumes Continue to Soar
Shippers… tight capacity, increased rejections and inflated carrier prices will continue into August. Now well above March’s panic buying numbers, freight volume is sitting at a 29% increase year over year. And analysis shows the odds of a significant dip are unlikely. Get the details here.
2. Carrier Pricing Power Hits All Time High
It’s more bad news for shippers. Carriers are rejecting loads above 2018 levels. Volume is flowing at unprecedented, historic levels. And as carriers have options… they are exercising them in search of margins. Rates are high… and it’s predicted that they will remain this way through the end of summer. Get the full story here.
3. Analysts Say Rising Intermodal Volume is Here to Stay
Shippers are certainly seeing the appeal in the more competitive intermodal rates lately. And it shows… while TL rates skyrocketed in July, Intermodal volumes grew 8% year over year. And with peak season right around the corner, analysts predict this trend isn’t dying down any time soon. Read the article here.
4. Rising Insurance Means Higher Rates for Shippers
Carriers are seeing an average 5% to 10% increase in annual insurance rates. And these rising insurance costs aren’t just bad news for the drivers already operating on thin margins. As operational costs increase… so do customer costs. Shippers will undoubtedly see rate increases as these insurance hikes continue to grow. Get the details here.
5. New Cross-Border Rules
NAFTA 2.0 is one month old… Are you up to speed on the new rules for cross-border shipping? If you need to catch up, check out The Shipper’s Guide to NAFTA 2.0… it covers everything you need to know about the new USMCA-CUSMA-TMEC rules… get the guide.
6. Transportation to Invest in Tech for Improved Operational Efficiency
Recent Deloitte research says 45% of the transportation sectors’ operating profits could erode… and recent McKinsey research shows COVID-19 recovery could take 5 years… These chilling stats underscore the dire need for operational shifts in the supply chain. And the way the industry is tackling change is by investing in digital technologies. Where are they starting? Visibility… agility… and sustainability. Check it out.
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!