The Weekly Freight Report for December 3, 2020
The Top 5 Stories in Freight
Here’s what’s happening this week:
- Wild freight market changes the capacity strategy for shippers
- Broker transparency is front and center at the FMCSA
- Inventory replenishment leads to elevated trucking demand
- The 2021 freight market will be pricey for shippers
- The biggest driver decrease ever recorded
The hottest stories in freight can be found here, in the Weekly Freight Report:
1. Wild freight market changes the capacity strategy
There is no denying it… 2020 has changed the freight business. 3PLs, carriers and shippers alike have felt the whiplash of the freight market pendulum. But the outcomes of this recovery looks a bit different than in the past. CCJ covers how shippers, carriers and brokers have explored 3 new strategies to cope… the death of RFP, creative ways to create capacity, and dynamic contracts… all of these will shape the future of trucking going into 2021. Check it out here.
2. Brokers have the chance to voice their opinions to FMSCA
Carriers have had their day in court… now it’s the broker’s turn. The FMSCA will be accepting comments through Jan 25th on a request for the agency to rescind certain regulations to broker transaction transparency. Get updated on the controversy here.
3. Inventory replenishment leads to elevated trucking demand
Demand for consumer products remains high… making it increasingly difficult for retailers to keep products on the shelves. This inventory replacement cycle seems to have no end in sight… and it’s keeping demand for truck capacity elevated. Freightwaves suggests inventory correction will last well into 2021… contributing to the existing capacity shortage. For shippers this means a new year with the same old elevated demand, tight capacity and rising rates. Get the full details here.
4. The 2021 freight market will be pricey for shippers
2021 comes with hopes of a ‘very strong’ market for industry profitability. Experts predict a surge stemming from retailers restocking depleted inventories and a manufacturing rebound. For shippers, however, this means increased contract rates- possibly by as much as 10%. And spot rates? They’re expected to be up in high single digits. Will 2021 be an even more expensive year for shippers? It’s looking like it… read the full article here.
5. Biggest driver decrease ever recorded
The number of truck drivers is experiencing ‘the biggest downturn it’s ever seen’ according to FMCSA data. Typically, a recession would lead to a glut of available truck drivers looking for work. But this year is different. There has been a 4.4% decrease in truck drivers since July… and its being reflected in record high spot rates. But JOC says if this current climate continues, drivers should head back into the market into Q1 2021. Get the full story here.
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