The Weekly Freight Report for June 10th, 2021
The Top 6 Stories in Freight
Here’s what’s happening this week:
- U.S. House of Representatives introduces Speed Limiters Bill
- Industry suffering from massive talent gap up and down supply chain
- Shippers plan ahead as import projections see another boost
- Carriers to charge shippers extra dwell and accessorial fees
- Shippers moving flatbed loads seek other options amid capacity crunch
- What cross-border shippers need to prepare for as demand accelerates
The hottest stories in freight can be found here, in the Weekly Freight Report:
1. U.S. House of Representatives introduces Speed Limiters Bill
It’s a big potential step for road safety… A bill recently introduced to the House would require commercial motor vehicles to be equipped with speed limiting technology. Under the measure, the tech would set a max speed of 65 or 70 mph with adaptive cruise control systems as well as automatic emergency braking systems. And major freight stakeholders like the FMCSA and ATA are in favor. Get the full details here.
2. Industry suffering from massive talent gap up and down supply chain
There’s a major talent gap among the supply chain… and it’s becoming a big problem. Even pre-COVID the U.S. labor report indicated that there was one qualified candidate for every six supply chain job openings. And today, 87% of people want to continue working remotely even if it’s just one day per week. This makes it extremely difficult for supply chain companies to compete… especially with historically high demand. So what’s a company to do? Get creative. Here’s what some are doing to remain competitive.
3. Shippers plan ahead as import projections see another boost
US retailers have upgraded their projection for import volumes in the coming months as consumer demand thrives on. And while there’s no shortage of demand from consumers… There continues to be shortages of labor, equipment, and shipping capacity to meet that demand. Experts are telling shippers to not only prepare for a much earlier peak season… but for continued disruptions among the supply chain. Get the details.
4. Carriers to charge shippers extra dwell and accessorial fees
Dwell times are up 50% year over year and now US carriers are raising penalties on shippers who hold onto trailers and containers beyond their allocated time frame. In some cases, they’re also doubling accessorial fees and cracking down on customers who don’t provide dual transactions. Get the full details on the extra costs here.
5. Shippers moving flatbed loads seek other options amid capacity crunch
Construction is on the rise… home construction, commercial construction and even infrastructure construction. And it’s making it nearly impossible for shippers to land flatbed truck capacity. And if you do land a truck… it’s going to cost you. Flatbed spot rates jumped above contract rates in May, rising to $3.11 per mile on average. Demand is expected to remain bullish throughout the year. So shippers hauling flatbed freight may need to seek other options such as dry van trailers, if possible. Get the details.
6. What cross-border shippers need to prepare for as demand accelerates
USMCA… nearshoring… and a pending $28B merger between Kansas City Southern and Canadian Pacific railroads. North American cross-border freight is booming and the trend is just getting started. Mexico is the United States’ leading trade partner with Canada right behind it at #2. As freight levels continue to increase, shippers need to know the ins and outs of the ever-changing trade regulations to remain efficient. Here’s what you need to know.
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!