Freight volumes temporarily decrease this week, as expected for the days following a holiday.
The image to the right shows the dip in freight volume after a holiday occurs. It becomes clear where Memorial Day, 4th of July, Labor Day, Thanksgiving, and Christmas fall every year and it is evident that the dips are only temporary. Freight volume will increase back to where it has been with the index around 16,000 by this weekend.
Tender rejections are still hovering at the 25% mark. The exact number this week is 26.24% of loads being turned down by carriers to seek higher-paying loads and/or more desirable lanes. As a reminder, once MegaCorp commits to picking up a shipment, we will see that shipment through and will not leave it on the dock.
Why isn’t there a decrease in the Outbound Tender Rejection Index with less freight on the road this week? Hurricane Laura is part of the reason, but the main reason is the Commercial Vehicle Safety Alliance’s previously postponed Roadcheck (aka 72-hour Safety Blitz), which has been rescheduled to this week, Wednesday to Friday. Many carriers use this week to take a vacation so there are less trucks on the road.
72-Hour Safety Roadcheck September 9-11
Last year, during the three-day blitz, 12,019 vehicles were removed from the roadway and it placed 3,173 drivers out of service. The CVSA states that this year’s focus is on the driver requirements component of a roadside inspection. Among other things, CVSA says officers will look for:
• Driver’s license or commercial driver’s license (class, endorsements and restrictions)
• Medical Examiner’s Certificate and Skill Performance
• Evaluation Certificate, if applicable
• Record of duty status, if applicable, and any supporting documents
• Illegal presence of alcohol, drugs, weapons, or other contraband
• Illness, fatigue, or other signs of impairment
• Seat belt usage and condition
• Evidence of periodic inspection
• Driver’s daily vehicle inspection report, if applicable
• Carrier identification and status (USDOT/NSC Number, or jurisdictional equivalent)
• Operating authority, if applicable
• Vehicle registration(s)
• Proof of insurance
• Shipping papers/bills of lading
Expect even higher tender rejections and an increase in spot market pricing throughout the week. Shippers should rely on logistics partners such as MegaCorp that do not give back loads or leave loads on the dock to eliminate unnecessary stress and costs.
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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