Increasing lead times could be the new “Amazon effect” and potentially a problematic sign for LTL
Carriers are getting more notice to pick up loads. Is this a result of Amazon relaxing their service expectations?
Carriers are getting more notice to pick up loads. Is this a result of Amazon relaxing their service expectations?
Lead times fell throughout 2019 as shippers became accustomed to excessive capacity.
Lead times increasing are a sign that shippers are taking capacity shortages seriously. Carriers and brokers that depend on spot market freight are left wanting.
The rate of rejected loads coming out of LA inched upward, signaling that the July ‘mellowing’ period may be over. Container rates from China to North America’s West Coast stayed elevated for the second week in a row, and containership idle capacity is at 1%.
Container traffic into the Port of Seattle is down 22.6% YTD, starving the city of freight. Trucking spot rates have cratered, and turndowns have dropped 75% since their peak in October as carriers are forced to accept lower prices.
For months, West Coast spot rates have been softening, allowing brokers to take big margins and shippers to move freight inexpensively, with short lead times. That’s about to change.