Perspective on Current Shipping Rates
Below, please see the latest updates from our shipping partners, GlobalTranz.
- Truck drivers and fleets have less than a week to prepare for the Commercial Vehicle Safety Alliance’s (CVSA) annual 72-hour safety blitz, which is set for May 4-6. This is one of, if not, the largest disruptions in trucking.
- Freight flows are expected to remain very high. The National Retail Federation is forecasting a 26.9% year-over-year increase in twenty-foot equivalent units (12 million TEUs in total) at the nation’s top container ports in the first half of 2021. A combination of strong spending and easy year-over-year comparisons from widespread COVID-related lockdowns during the 2020 second quarter are the basis for the outlook.
- As produce season begins, the reefer capacity environment has rarely been tighter. The Reefer Outbound Tender Reject Index (ROTRI) is also just off an all-time high and currently reads 46%, indicating nearly half of all electronically tendered contract reefer loads are being rejected.
- Capacity remains extremely tight as the industry’s driver pool has been reduced by more than 200,000. Over the last year, COVID fears have led to early retirements, driver schools have operated at restricted capacity and Drug & Alcohol Clearinghouse compliance has sidelined operators.
- Spot rates continue to outpace year-ago levels with the gap expanding as carriers work through bid season. Most carriers expected contractual pricing to increase by high-single to low-double-digits entering the year. It now appears double-digit rate increases are likely as fundamentals suggest no near-term relief is in sight. Spot rates were roughly 30% to 70% higher year-over-year throughout the first quarter. Rates are 80% higher in the latest week.
With the end of the month this week and the DOT safety blitz the following week, there are currently no markets that are easing. If anything, the entire truckload market is bracing for a major driver shortage in the coming weeks that could catapult spot rates to an even higher level for the year and roll right into the 100 days of summer.
- Clear Lane recently went through systems upgrades and has had major issues with service delays as well as tracking issues. Many of the problems have been resolved but issues are still happening, and delays are very common.
- The winter weather experienced over the last several weeks is still impacting large areas of the Midwest and Southeast as delays are rampant in those areas as carriers attempt to dig out from their back log.
- BC Freightways: IB/OB CO except Inta CO and IL-CO
- Central Freight: Embargoes on freight going into Northeast Partner points including states: MA, RI, NH, ME, VT, CT, NY, NJ, PA, DE, DC,
- MD. IB/OB into the following terminals: ORL (Orlando), TPA (Tampa), MIA (Miami) IB/OB to ORL (Orlando), MIA (MIami), TPA (Tampa), CLT (Charlotte)
- Central Transport: Large number of zip codes across the country having service issues
- Clear Lane: Temporary CA Surcharge on shipments moving to CA, AZ & NV
- Daylight: Weight restrictions of 7499 lbs for Chicago and all of California
- Dayton: IB only to St. Louis & Indianapolis service centers. No shipments 10klbs or greater
- Dohrn: IB into PLY (IN) terminal. IB/OB into MSP (MN) terminal. IB to Janesville WI (JVL)
- Estes: OB LA Basin Area & IB/OB for various zip codes. IB Denver and CO Springs
- Holland: Embargoes on various zips in service area due to capacity (Cleveland, Michigan, Chicago, Fort Wayne, Indianapolis, Northern
- Indiana, Wisconsin, Rockford)
- N&M Transfer: IB to IN & 490-495 (Lower MI) and OB IN and OB 490-495 (Lower MI)
- Reddaway: Embargoes on various zips in service area due to capacity (Fontana, Salt Lake City, Los Angeles, Seattle
- R&L: No shipments 10klbs or greater
- SAIA: DSM (Des Moines) LA Basin Area, OB for CLV (Cleveland), GRA (Grand Rapids), LOU (Louisville) IB to PHX (Phoenix)
- SEFL (Southeast Freight Lines): Capacity embargo put in place to help alleviate network for the following zips:
- OB: 226,228-229,244,299,304,313-315,333,355-358,380-381,386,704,723
- IB: 226,226,229,244,287-288,299,304,313-314,330-331,333,355-358,370-373,377-379,384-385,387,389-394,396,400-402,427,471,700-701,703-704
- Standard Forwarding: IB/OB ANK terminal which is Iowa and some parts of IL
- Total Transportation: 90049 90068 90069 90077 90265 90274 92223 92301 92307 92308 92344 92345 92392 92393 92394 92395 92399 92543 92544 92545 92570 92571 92582 92583 92599)
- YRC: Limited # of zip codes embargoed across country due to capacity
- Ward: Temporary hold on MI Shipments