The Weekly Freight Report for October 29, 2020
The Top 6 Stories in Freight
There’s bullish news on container shipping… the supply chain updates its tech standard… the FMCSA had a busy year… insurance hikes hurt everyone… and shippers sing the blues…
The hottest stories in freight can be found here, in the Weekly Freight Report:
1. Demand expected to strengthen until 2021
Major container lessors are describing demand for equipment as “exceptionally strong” going into Q4. And they expect demand to remain strong well into the early half of 2021. With capacity running tight (and not going anywhere) ocean shippers will be paying a premium for a while… Get the full details.
2. The supply chain struggles to update standards
In logistics, EDIs rule. Dating back to the 70’s, EDIs have been the standard for data exchange between partners. And while they remain the life blood of the logistics industry, they are also extremely outdated. As the industry moves to go digital in all areas and update standards, many companies are looking to switch to APIs for faster and easier processing. The problem… API support is not as robust as it needs to be. Get the details of the data dilemma.
3. A busy year with driver shortages as #1 issue
FMCSA has had both a busy and challenging year. The HOS rule changes, the Drug and Alcohol Clearinghouse, the crash prevention program, and driver recruiting top the list of their achievements and challenges. But the runaway #1 issue facing the FMCSA and the industry remains driver recruitment. “We are struggling to get drivers,” says the FMCSA. The 18-20 year old military drivers pilot program launched last summer isn’t going so hot. And while several other initiatives are underway… nothing has gone into action. Get the complete details from their recent ATA update.
4. Insurance hikes come at a cost for everyone
Carriers have been plagued by astronomical insurance increases year over year. And it’s putting carriers in a tight spot… pay more money for less coverage, or close their doors. It’s inevitable that at some point, carriers will begin charging shippers an insurance surcharge to offset the difference. Here’s what’s in store for 2021.
5. The FLS Shipper Portal
We’re so excited to be named a Top 3PL in North America by Global Trade Magazine again for 2020… it’s a testament to the hard work and dedication of our collective team. A huge thank you goes out to our employees, carrier partners, and loyal shippers! Check out the full list of top 3PLs here.
6. Shipper index shows lowest level in 2 years
The most recent edition of the Shippers Conditions Index (SCI) came in at -1.79. That marks the lowest level in two years and confirms the unusual market conditions of the past 3 months where capacity was hard to find and rates spiked. The SCI is an indicator that sums up all market influences that affect shippers. A reading below zero is a “less than ideal environment for shippers.” Not only are the current conditions unfavorable, but what’s worse… the index continues to show a declining trajectory. The expectation is that the next few months will remain difficult for shippers… but there is good news on the horizon. Get the details.
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!