The Weekly Freight Report for July 30, 2020
The Top 7 Stories in Freight
Capacity gets even tighter… Shipping rates spike… Hanna slows down cross-border moves… self-driving trucks are still a decade away… and the annual RFP is dead. The hottest stories in freight can be found here, in the Weekly Freight Report:
1. Capacity Tightens as Volume Continues to Soar
Shippers, strap in. Strong market signals show capacity isn’t likely to loosen up anytime soon. Increased rail volume driven by industrial freight is on the rise, which is a key leading indicator for future truckload volume… And the outbound tender rejection index is at its highest since Dec 2018. Looks like this tight market is only warming up… Read the full article here.
2. Hurricane Hanna Slows Cross-Border Crossings
Shipping freight over the U.S. – Mexico border this week? Prepare for delays. Heavy rain and flooding caused by Hurricane Hanna is expected to delay border crossings all week. Heavily impacted areas include Saltillo and parts of northern Mexico and Southern Texas including Highway 40D. Get the full story.
3. Load Volume Continues to Ramp Up
It’s no longer a shippers market. Volumes are up 27%… rejections have doubled since July 4th… and the trend isn’t expected to end anytime soon. There is no summer slump this year and experts expect the volume run to continue… what it means for shippers is tight capacity, increased rejections, and inflationary pricing… get the story here.
4. Self-Driving Trucks Still a Decade Away
In recent weeks we’ve seen a revisited hype in autonomous trucks. And we hate to be a vibe killer… but new research from MIT says it’s going to be a while before self-driving trucks without a safety driver are the norm. How long exactly? A decade. Here’s what’s taking so long.
5. Retail Fulfilment Gets Creative
As e-commerce demand continues to rise, so does the need for local fulfilment. And retail shippers are getting creative. With consumers spending less time in stores… and more time online, shippers are converting big-box stores into warehouse space. This transition is called retrofitting… and its expected to grow in the coming years. Check it out.
6. The Annual RFP is Officially Dead
If shippers were hesitant about 12-month RFPs before this year… we can just about consider them dead moving forward. 2020 has seen two major market shifts in capacity and rates already… and all signs indicate that peak will be the toughest since 2017. In the current market environment, it’s hard to price a lane for 30 days much less 12 months. That’s right annual RFPs are dead… we have officially entered the era of dynamic bidding… here’s what’s in store.
7. Grocery Supply Chains Pivot With the Times
Grocery store supply chains have had quite a year. In February, 98% of food brand sales took place via grocery stores.. meaning when mass closures happened, they were the only place to purchase food. And we all know how that turned out. Even though some of us suffered from a lack of toilet paper for a month or so… the grocery supply chain remained resilient. And the lessons learned just might change the way it operate forever. 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!