Truck Market Update 8.18.2020
Daily Load Volumes Increase Steadily 2-3%/Week
Daily tender volumes continue to rise. They have risen another 14% in the past month and are increasing steadily at 2-3% each week, mostly due to manufactures repositioning their facilities to accommodate new demand. Correspondingly, the outbound tender rejection is still seeing an overall upward trend at 22.67% of loads being turned down by carriers, further fueling the expensive shipping costs.
72 Hour Safety Blitz September 9-11
Shippers need to be prepared for another surge in shipping costs due to the Commercial Vehicle Safety Alliance’s (CVSA) annual 72-hour safety blitz that will take place in three weeks, September 9-11. This was postponed from May due to COVID. Last year, this placed 3,173 drivers out of service. 1,179 drivers were placed out of service due to hours-of-service violations during Road-check and another 467 (14.7%) for having a false log. However, it will be interesting to see how the numbers play out this year because the FMCSA extended its emergency relief declaration to September 14. This relief effort relaxes the hours-of-service rules for motor carriers that are providing direct assistance in support to COVID-related relief efforts. This is intended only for the transportation of:
- Livestock and livestock feed.
- Medical supplies and equipment related to the testing, diagnosis and treatment of COVID-19.
- Supplies and equipment necessary for community safety, sanitation and prevention of community transmission of COVID-19 such as masks, gloves, hand sanitizer, soap and disinfectants.
- Food, paper products and other groceries for emergency restocking of distribution centers or stores.
Numerous carriers/drivers use the Safety Blitz week to take vacations which will add to the already extremely tight capacity and surging shipping costs. Expect higher than usually tender rejections and an increase in spot market pricing the second week of September. Clients should rely on logistics partners such as MegaCop that do not give back loads or leave loads on the dock.
Carts below based on 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!
For a shipping quote, please CLICK HERE.