Holiday Freight Market Update December 22
Freight volumes dropped 3% from last week and will continue to decrease over the next week because most of the holiday freight has made its way through the supply chain. Volumes will remain low through the end of 2020, but are still approximately 50% above 2019. Even with this volume decrease, the tender rejections increased 3% from last week which is less than 1% off from the all-time high. This is due to carriers trying to get back to a specific location for the holidays, or are already on their holiday vacation. Tender rejections will continue to rise over the next couple of days and will temporarily decrease some with the drastic plummet in tenders over Christmas to the beginning of the New Year.
The abundance of holiday freight will no longer be a factor in early 2021, so we should see a slight relief in freight rates because of that and a decrease in the gap between spot and contract rates. However, rates will remain well above early 2020.
Our prediction is that tender volumes will rise back to where they were this past summer for January 2021. Consumer spend will stay strong with unemployment rates down another .2% to 6.7%, which is a vast improvement from the pandemic high of 14.7%. With the consumer spend shift here to stay, and another stimulus on the way, we expect the overall freight volume to be at least 33% more than early 2020. Our Market Updates will return in January 2021 and we wish you a very Merry Christmas and Happy and Healthy New Year!
Load to truck ratio from the prior 7-day average:
MegaCorp Logistics, founded by Denise and Ryan Legg in 2009, specializes in full truckload shipments (dry van, refrigerated, flatbed, intermodal, etc.) and less-than-truckload shipments throughout the US, Canada, and Mexico. MegaCorp is committed to creating long-term, strategic partnerships with our clients who range from Fortune 100 companies to regional manufacturers and distributors. We serve all business sectors of the US economy including (but not limited to) food, retail, government, textiles, and metals/building materials. We strive to offer the best to our clients, transportation partners, and employees– It’s the Mega Way!
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