Pricing in ocean shipping was done much differently in the 1970s compared to today. To simplify things, a group of executives created a game around the concept for workers to play.
At FreightWaves’ Future of Supply Chain event in Cleveland, Craig Fuller gives his monthly outlook on the freight market, and he is bearish.
The best shipping partners are those who collaborate to cut costs without service degradation.
The holidays are quickly approaching, and shoppers are checking off their gift lists. This year, however, the festive frenzy has not been strong enough to create a traditional peak season effect.
The trucking business is often cyclical, and understanding the changes in profitability is a great barometer for the general macroeconomic outlook.
A combination of rising fuel prices, lowering spot rates and falling imports makes for a freight market in transition.
Shippers are buoyed by the promise of falling rates in the coming months, but this optimistic outlook may put even more strain on rate negotiations in the meantime.
When the market shifts, flexibility is the key to acting fast and capitalizing on new opportunities. Despite this, many processes in the industry can be quite rigid.
CRST’s dedicated solutions place the individual customer at the focus to add value and maximize service.
Loadshop is a growing digital freight marketplace that continues to expand its capabilities while driving efficiency and transparency for both shippers and carriers
are pumping across the country, but it seems routing guides have finally shown signs of improvement. Pair the declining electronic tenders with declining tender rejections, fewer spot volumes, and both contract and spot rates headed lower, the picture of an improving environment can be visualized.
Service-based spending categories like airlines, lodging and restaurants all were positively impacted by the stimulus, but the top 5 biggest growth segments came in goods. With the roaring consumer economy, blossoming industrial recovery, white-hot housing market and historically depleted inventories, there’s very little outside of severe inflation that could derail this trucking market.
The stage is set for a historically strong Q1 for freight with a slow vaccine rollout keeping a lid on services spending, and consumers are flush with recent stimulus as well as the hopes for more to come. The freight bull market rages on to start 2021.
There is a strong pipeline of West Coast imports that should feed those markets well into Q1, but the retail portions will be less time-sensitive post-Christmas. The one factor that may be suppressing volumes in the holiday season is retailers’ decision to slow the velocity of their sales in the face of low inventory levels.
We expect strong holiday truckload and parcel demand
driven by a consumer spending portfolio that has been weighted heavily toward goods over services since the pandemic began. We believe that we are now in peak season and that shippers’ requests for trucking capacity will continue to rise.
This week’s DHL Supply Chain Pricing Power Index: 80 (Carriers) Last week’s DHL Supply Chain Pricing Power Index: 75 (Carriers) Three-month DHL Supply Chain Pricing Power Index Outlook: 65 (Carriers) […]
Freight volumes and capacity remain historically strong for carriers even though OTVI and OTRI have fallen steadily throughout October.
This week’s DHL Supply Chain Pricing Power Index: 75 (Carriers) Last week’s DHL Supply Chain Pricing Power Index: 80 (Carriers) Three-month DHL Supply Chain Pricing Power Index Outlook: 75 (Carriers) […]
We have officially moved back into “broken record” territory that we have not seen since February. While volumes are flowing at record levels and capacity is as tight as it’s ever been, there is little volatility at the moment.
While OTRI has fallen ~5% off the Labor Day peak, it remains at a remarkably high 25.66%. This indicates that nearly one in four loads is still being rejected at contracted rates across the country.
If you had told carriers they would see $3 a mile at any point during a global event like this, I believe many would have questioned your sanity. Yet, here we are with the Truckstop.com national spot rate average sitting at $2.93 per mile on Oct. 1.
3 Mistakes You Don’t Want to Make with the GRI
Research by digital brokerage shows carriers that got funds consistently bid lower for loads in April
We have gotten word that carriers are holding capacity until the end of the day before auctioning it to the highest bidder. Rates are nearing $3 per mile on a national level, and rates are already above that in 51 of 100 Truckstop.com lane pairings.
Spot rates out of LA and Dallas are remarkably high and the tight capacity in those markets is driving the freight cycle.
The carriers did not lose ground this week, but rather further solidified their dominant pricing position. Volumes remain well above 2018 and 2019, running in the +20% to 25% range. The elevated volumes are giving carriers options in the market and they are exercising those options at a high clip.
There is no change in the Pricing Power Index this week despite a continuation of the trends we’ve seen over the past few weeks: astounding volumes, carriers rejecting contracted freight at a high clip and rates continuing to trudge upward.
The carriers continues their power grab this week. Shippers remain in control, but carriers are much better off than they were a few weeks ago. Capacity is beginning to tighten and rates are being pushed up.
National volumes and tender rejections have been roughly flat for the past week. There is no change in the DHL Supply Chain Pricing Power Index this week. Shippers remain in dominant pricing power position.
This week, the shippers gain pricing power for the 5th time in the first seven weeks of 2020. Volumes are flat, rejection rates are low and rates are even lower.
In a monotonous week in the freight industry, we believe neither the shippers nor carriers gained any pricing power.
MSI expects bunker surcharges to also be a factor in container rates.
Schneider Logistics published its 2019 Transportation Industry Review, arming shippers with the information they need to make short- and long-term distribution plans, budget freight costs and provide industry context to their broader audiences.
Data on producer prices shows that overall inflation pressure eased further in February, as a gain in goods prices was restrained by the service sector. Industry detail showed that overall trucking rates declined in February, led by the largest decline in long-distance truckload rates in four years.
The history books will say many things about 2018, but whatever else is recorded, it will go down as one of the strongest years for spot and contract pricing increases in the history of trucking in the U.S. Will that trend continue?
The spot market has been cooling over the past several months, but the players seem more uncertain than ever.
Imports into the U.S. grew an estimated 5-10 percent last quarter while U.S. exports to China fell 25-30 percent.
The Dry Van Weekly Barometer is predicting stronger contract pricing in coming months. Even though it has pulled back from extreme highs, it continues to reflect one of the highest levels of demand in excess of capacity in the history of the barometer.
Morgan Stanley’s Truckload Freight Index has decreased over the last two weeks and has now underperformed seasonality two updates in a row. This seasonal deceleration is not unusual, as July and August tend to be weaker.
Schneider National became the latest carrier to announce that it has benefited financially from the strong pricing and capacity squeeze when it announced its second-quarter operating revenues were up 15% year-over-year.
Among today’s highlights: a drop in spot rates, Werner comments on driver availability, Rhode Island collects more than expected