Check Call: The rise of private fleets

The study found that shippers are leveraging private fleets for day-to-day activities versus peak season shipping. The overflow there will continue to find its way into the hands of brokers and 3PLs alike.

It’s not all sunshine, though. Private fleets are still struggling with recruiting and retaining drivers like most other motor carriers. Private fleets are being more stingy with the drivers they hire. According to the study, “The average fleet reports that they review, screen, and interview 16 candidates to fill one driver’s position. This is up from the 10 candidates reported last year.”

Not only are private fleets helping shippers with transportation costs, they’re helping on the sustainability side of things. Environmental sustainability efforts continue to be a top priority for the vast majority of private fleets, with nearly three-quarters of the respondents in the study reporting investing in greening initiatives such as trailer skirts, speed governance and anti-idling technology. 

Market Check. This week’s market goes to the Southeast in Savannah, Georgia. Capacity tightened as outbound tender rejections and volumes are on the rise. Outbound tender rejections are up 477 basis points, to 8.84%. On the flip side, outbound tender volumes are up 9.8%. The sharp rise in outbound tender rejections will negatively impact carrier compliance levels as 91% of carriers are accepting their contracted freight. That’s a stark contrast to the beginning of August, which had closer to 95% carrier compliance. Should outbound tender rejections remain elevated for an extended period of time, spot rates will start to feel the inflationary pressure.

Who’s with whom? It’s about to be who’s not with whom as the looming threat of the Canadian rail strike comes closer to reality. The Teamsters Canada Rail Conference on Sunday served a 72-hour strike notice to rail giant Canadian Pacific Kansas City, saying the union will walk out at 12:01 a.m. Thursday if negotiations don’t come to a resolution. The notice is a requirement of Canadian law. 

Canadian National Railway has issued a lockout notice of its own to go into effect at 12:01 Thursday. This comes after “no meaningful progress” was made in weekend negotiations. The railroad has started a phased and progressive shutdown of its network in preparation for the lockout. Paul Boucher, TCRC president, responded to the notification by saying the railroad “is demanding concessions that would drag working conditions back to another era.” The union claimed the company is demanding to extend work days in provinces west of Ontario, “creating a fatigue-related safety risk,” and wants to impose a forced-relocation policy.

FreightWaves’ Stuart Chirls quoted a Monday statement by the Vancouver Fraser Port Authority: “We are concerned about the prospect of further labor disruptions impacting port and supply chain operations. The impact to the Port of Vancouver will be significant, with approximately two-thirds of all cargo volumes at the port moved by rail, including 90% of international exports.”

The more you know 

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