Another massive weekly gain in outbound tender load volumes
The freight markets continue to accelerate with outbound tender volumes climbing another 7.4% week over week. This has continued to keep truckload capacity tight and it is showing in spot market rates along with a power rating of 85 out of 100 for carriers in the DHL Supply Chain Pricing Power Index.
What are driving these freight volumes?
Ocean volumes on the West Coast could be the answer, according to Zach Strickland’s Chart of the Week article. He breaks down the correlation between the strength of West Coast ocean imports and the lag effect it has with tender load volumes starting in Southern California before moving into inland truckload markets.
While West Coast imports are heating up, Noi Mahoney details that container volume dropped by 10% in July at the Port of Houston.
Los Angeles SONAR: OTVI.LAX, CSTM.LAX
You can get more color on the spot market on this week’s episode of On the Spot, Imports and intermodal issues driving West Coast rates, with Zach Strickland and JP Hampstead.
2020 just keeps getting weirder and weirder
If 2020 wasn’t weird enough already, the U.S. now has two tropical storms, Marco and Laura, approaching the Gulf Coast this week. Marco is now a Category 1 hurricane and Laura may very well hit Category 2 levels before making landfall this week.
While these storms are unlikely to create the havoc that Harvey and Irma produced after hitting Houston and Southern Florida in 2017, both could create even more tightness in truckload capacity this week.
Here’s FreightWaves’ meteorologist Nick Austin with his Sunday afternoon forecast:
[vimeo-autoplay video-id=”450867484″]
OK, 2020, you win
Is it time to discuss how truckload is priced?
This is the question Michael Fullum asks in his commentary, OK, 2020, you win. Transparency between shippers, carriers and 3PLs is reaching the point where the market should start discussing new pricing arrangements to account for periods of volatility, like we are seeing in 2020.
You can leave your opinions down in the comments section below.
Sessions from the FreightWaves Carrier Summit we think you’ll like:
Helping truckers exit dwell hell (with video)
Trucking deals outpacing other sectors (with video)