The Weekly Freight Report for January 20th, 2022
The Top 5 Stories in Freight, Transportation, & Logistics
Here’s this week’s Weekly Freight Report:
- FMCSA moves forward with young driver apprenticeship program.
- Thieves target rail cargo containers near LA.
- Another winter storm to impact lanes and tender rejections.
- Will Canada’s vax mandate break the supply chain?
- Wholesale prices are soaring to record highs.
1. FMCSA moves forward with young driver apprenticeship program.
The FMCSA hopes to improve capacity with the implementation of the Safe Driver Apprenticeship Pilot Program (SDAPP). The SDAPP will train 18-20-yr-old CDL holders extensively which will allow them to drive across state lines. The FMCSA will need a max of 1000 carriers to participate in mentoring the 3000 apprentices accepted into the program once it is implemented. To learn more on the program requirements for carriers and young drivers, click here.
2. Thieves target rail cargo containers near LA.
The scenes along the tracks heading into Los Angeles look like a bomb went off, scattering boxes and goods across the ground and rails. With bolt cutters in hand, thieves have been raiding cargo containers since November, looking for valuable items. Trains have been rolling into the rail yards with doors wide open and spilling packages along the way. To find out what is being done to protect your cargo, read more here.
3. Another winter storm to impact lanes and tender rejections.
This week, a winter weather system moves across the US, covering the roads with ice and snow. Starting in Texas and moving to Virginia, this weather system will be dropping anywhere from a tenth of an inch of snow to 5 inches. The nor’easter from last week is still affecting tender rejection rates in the northeast, and this new system could add to the headaches. See which lanes are impacted and maps here.
4. Will Canada’s vax mandate break the supply chain?
How much more stress can the supply chain withstand? Inflation in the US and Canada, tight capacity, scarce supply, increase in demand for consumer goods have all put a strain on the supply chain… and now add a vaccine mandate. Data provided by FreightWaves says that spot rates across US-Canada lanes are 10%-20% higher, and the OTRI for Canada shows that carriers are rejecting approximately 11% of tendered loads. To see the data and predictions on capacity, click here.
5. Wholesale prices are soaring to record highs.
Inflation is wreaking havoc on the supply chain, specifically at the wholesale level. Wholesale prices skyrocketed to a record-setting 9.7% for 2021. This data preceded a report from the US government stating consumer inflation jumped 7% in December from the previous year… which is the highest inflation rate since 1982. The Fed is attempting to control inflation by tightening credit by raising the cost to borrow for consumers and businesses. To see the numbers and how they could impact your business, click here.
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