The Weekly Freight Report for July 9, 2020
The Top 8 Stories in Freight
Volume heats up… insurance costs continue to plague carrier profits… the digital freight trend continues… and a new cross-border trade rule goes into effect. Get caught up on the top stories with The Weekly Freight Report:
1. Freight Volume up 45% Year Over Year
Between shippers clearing quarterly inventory and July 4th consumer demand… freight volumes are currently sitting at 14% above the 2018 highpoint. And carriers are rejecting more freight than they were in March. The result? Shipping rates are feeling the pressure. If history tells us anything, things are likely to level out in the coming days. But keep in mind, 2020 isn’t one for following historical trends. Get the full story.
2. Manufacturing Growth Sets Multiple Records
The U.S. PMI broke multiple historic records for growth in June. It’s the first time the Purchasing Mangers Index has seen growth since July 2019 and it’s the fastest growth since 1980… it’s a clear indication that the economy will be coming back… its also another sign that the freight markets will continue to tighten as we move through summer. Check out the full report.
3. Insurance Costs Continue to Plague Carrier Profits
A new report by AM Best paints a grim picture for insurance rates. Underwriting reports indicate that 2019 saw $3.9B in losses. And that means the high cost of motor carrier insurance will continue to be a problem for carriers trying to turn a healthy profit. Get the full report here.
4. North America Sees Huge Benefits in New Trade Deal
Industries across North America are praising the new North American trade deal, USMC. From strengthening N.A. trade relationships… creating certainty for retail investments… job creation… and more, the benefits brought from this modernized agreement are astronomical. But some are still skeptical about the timing… read up on the controversy.
5. Digital Freight Marketplaces Continue to Trend
The trend of freight brokers connecting marketplaces with TMS providers is accelerating…and it’s opening new doors for shippers and carriers alike. Easing capacity constraints… opening up new lanes… providing benchmarking tools for shippers… The benefits go on and on. And this dynamic duo is only becoming more vital to this unpredictable market… get the full story.
6. New Law Could Require Higher Carrier Standards
85% of motor carriers currently operate with an unrated safety rating. Because of this, two U.S. representatives have introduced new legislation that would require brokers to use more rigorous standards before hiring carriers. The TIA breaks down what this law would require… check it out here.
7. The Shipper’s Guide to NAFTA 2.0
Worried about adapting to the new trade agreement? Don’t be. The Shipper’s Guid to NAFTA 2.0 covers everything cross-border shippers need to know about USMCA-CUSMA-TMEC. Stacked with the 8 key changes… Industry tear out sheets covering the impact for each industry… Documentation changes and more, we’ve got you covered. Get your copy here.
8. Supply Chain Leaders Work Towards Resilience
It’s good news for transportation. The DOL report for June shows that trucking added over 8K jobs… on top of the 2K added in May. Although jobs are still at the lowest point since 2014… one things is for sure, we are on the right side of recovery. Get the full report 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!