The Weekly Freight Report for April 30, 2020
The Top 6 Stories in Freight
Duty deferrals… owner-ops stay home… and a potential capacity crunch. All this and more in the Weekly Freight Report. Check it out…
1. 90-Day Duty Deferral Will Provide Relief to Importers
A new 90-day duty deferral will postpone select customs duties for shippers impacted by the pandemic. And while it’s expected to provide short-term relief, you must prove it’s necessary. Only businesses financially impacted by government shutdowns, limited travel, and other pandemic-related issues will be considered. And even then, not all duties are covered. Get the details here.
2. Owner-Ops Stay Home Until Prices Trend Up
It’s a tough market out there for drivers… Many owner-operators are reporting rates of $1 a mile or less. What does a $1 RPM mean? In many cases, drivers can’t make money and would stand to lose on loads. As such, many are choosing to stay home. When will they get back on the roads? They’re saying once it financially makes sense… Get the full story here.
3. Spring Produce Brings Promise to Freight Market
Can the produce season give the industry a needed lift? New data showing spring produce for strawberries and blueberries is looking strong. With it comes increased volumes for west coast freight through early summer. And with the reopening of businesses in May, national volumes are anticipated to pick back up. Will it be produce for the win? Get all the details here.
4. Economists Anticipate Capacity Crunch
Plummeting volumes have surrounded freight news in recent weeks. But TIA’s Noel Perry brings up an interesting point… what happens once business picks up again? He said “ the snapback will be hard and fast.” With many carriers beaten down by low rates, he anticipates a whipsaw event to take place. Volumes and rates will be on the rise as shippers will scramble for trucks. Get the full prediction here.
4. Rising Diesel Demand Means Increased Trucking Demand
New data shows a direct correlation between diesel demand and trucking demand. And last week there was a significant up-tick in diesel demand. Experts are saying this is a sign of increased trucking volumes to come. While it’s difficult to make a perfect apples-to-apples comparison, this could be good news for trucking. Dive into the data report here.
4. Visibility Continues to be Top Supply Chain Challenge
What’s the true cost of supply chain invisibility? Loss of productivity, customer complaints and reputation lashes are just a few to name. Yet 63% of companies say they still do not use any technology to monitor performance. Sure, pressure to digitize, the amazon effect and economic forces make change difficult. But there are viable solutions… and you can get them right 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!