The Top 8 Stories in Freight
Roadcheck 2020 is live… The FMCSA releases an under 21 pilot… Driver exits could add to the capacity crunch… trucking jobs are up… and aggressive rate trends are expected ahead.
The hottest stories in freight can be found here, in the Weekly Freight Report:
1. North American Inspection Blitz Goes Live This Week
The enforcement boom is on this week. Carriers… be advised. And shippers, make sure your partners are prepared to avoid delays. Law enforcement officers across North America will conduct commercial motor vehicle and driver inspections from Sept 9-11. The focus this year is on driver requirements… here’s everything you need to know.
2. New Pilot to Allow 18-20 Year Old OTR Drivers
In an effort to address future driver shortages, the FMCSA has proposed a pilot that would allow non-military 18, 19 and 20-year-old truckers to drive across state lines. Shippers, if the thought of unqualified drivers makes you a bit nervous… rest assured. The proposal comes with some strict probationary periods for young drivers… check out the details.
3. The Capacity Crunch May Last Longer Than Expected
A new interesting mix to the capacity crunch. 1.4M jobs were added to the economy in August… and not many of them were truck drivers. In fact, most of the trucking jobs lost in April, haven’t been refilled. Not to mention the driver turnover rate increasing from 62% to 76% month over month. As volumes continue to soar… this is bad news for shippers that reply on open market capacity. Get the details.
4. Mexico Regains its Place as #1 US Trade Partner
The first 7 months of 2020 has resulted in $290.6 billion in two-way trade between US-Mexico… making Mexico the leading US trade partner. China was in the lead for a few months while automotive production was down. But that quickly changed in July when auto manufacturing plants ramped back up in Mexico… And as a result, so did cross-border trade at the southern border. Get the details.
5. DOT Releases Freight Funding Boost Plan
The DOT released a National Freight Strategic Plan to better guide multimodal freight policies, investments and programs. The policy focuses on improving three areas of freight… infrastructure, safety and innovation. Increased freight transportation planning, job creation and increased technology use are a few of the plans… get the detailed list here.
7. August Saw a Nice Little Employment Spike
8,800 jobs were added to the trucking market in August. As the industry demands more capacity, it seems some truckers are coming back to work. But will it be enough to impact capacity come peak? It’s not looking good. The market has 85K less jobs than this time less year… and has 19% more volume. It’s not a good place to be for shippers going into the busiest season of the year. Get the details.
8. Contract Rates Going Up and Expected to Get Higher
Contracted rates jumped nearly 24% in July… the highest levels in two years. Contracted rates typically are slow to follow spot… but this aggressive jump indicates a tightening market, and you guessed it, even higher rates for shippers. The result? Shippers are looking for shorter contract periods to provide them flexibility to change with the market. Get the details.
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