The Weekly Freight Report for December 2nd, 2021
The Top 5 Stories in Freight, Transportation, & Logistics
Here’s this week’s Weekly Freight Report:
- ACT Research believes drivers are returning to work based on For-Hire Trucking Index.
- Weather, port congestion, and looming strikes wreaking havoc on the Canadian supply chain.
- New pop-up storage sites relieve port congestion along the east coast.
- Companies probed about supply chain woes and disruptions.
- Long haul stats indicate retailers are over-ordering inventories.
1. ACT Research believes drivers are returning to work based on For-Hire Trucking Index.
There are signs that driver capacity is loosening… even if the evidence is small. ACT Research’s For-Hire Trucking Index revealed that volumes, pricing, and productivity are all decreasing. What is the cause? They believe more drivers are returning to work which is adding some capacity. ACT Research cites the fact that most fleets are exempt from federal vaccine rules as a reason the driver market is improving. To learn how these fleets are exempt and get the data, read more here.
2. Weather, port congestion, and looming strikes wreaking havoc on the Canadian supply chain.
Rain has caused highways and railroads to shut down increasing back-ups at the Port of Vancouver. As of Monday, there were more than 50 ships anchored at the port. The Canadian government is providing funding so the port can develop nearby acreage to be used as additional container storage. In addition to lack of space, there could be a lack of drivers by Friday as carriers serving Vancouver issued a 72-hour strike notice on Monday. To read more on this predicament, click here.
3. New pop-up storage sites relieve port congestion along the east coast.
Shipping yards are overflowing with containers creating safety concerns. The Georgia Ports Authority has partnered with railroad companies, airports, and other off-port properties to free up space on the docks by creating pop-up storage sites. These mini-versions of inland ports are strategically located near intermodal rail to reduce travel time for carriers, essentially bringing the seaport further inland. Could this short-term solution pave the way for future projects designed to increase the port’s footprint, find out here.
4. Companies probed about supply chain woes and disruptions.
The Federal Trade Commission is investigating 9 large retailers, wholesalers, and consumer goods suppliers to see how and why supply chain disruptions have been negatively impacting consumers and stifling competition. The companies have 45 days to submit their responses to the FTC’s inquiry. The information gathered aims to deepen the FTC’s understanding of economic conditions and business conduct. To see which retailers were ordered to comply with the request and what information they must submit, click here.
5. Long haul stats indicate retailers are over-ordering inventories.
Loads moving more than 800 miles have increased 6.5% and the average length of haul for truckload tenders is 10% higher over the past 5 months both of which are historically indicative of inventory replenishment. As people continue to work from home, they have more disposable income due to reduced commuting costs and are spending that income on home improvement items, which in turn puts more pressure on retailers’ inventories. Consumer spending and panic buying all contribute to increased inflation. Click here.
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