NATIONAL FREIGHT VOLUME: 25% Above 2018-2019
Historically, shippers experience a decrease in volume after the 4th of July. However, the volume is up 25% from the 2018-2019 average (source: Freghtwaves). Shippers have adapted and are repositioning their manufacturing efforts to meet new demand, which is accounting for a large amount of sustained volume. Additionally, shippers in certain industries (produce, poultry, dairy) are still experiencing a sustained surplus of orders to fulfill with most of the country attempting to stay home as much as possible.
Contracted freight is being rejected at a 16% clip across the country which further adds to the tightened market. Increasing rejection rates indicate upward rate pressure while declining rejections indicate the opposite. The increasing transportation prices along with declining warehouse capacity are trending toward a pattern eerily similar to 2018 when rates surged stemming from the ELD mandate and capacity
issues due to multiple, devastating hurricanes.
There is little evidence that leads us to believe freight volumes and freight rates will fall off significantly in the coming weeks. Some regions of the country are going back into lock-down but the restrictions are less severe. The sectors being locked down are predominantly service-based industries that do not move a large percentage of the nation’s freight.
At MegaCorp, we have strong relationships with our vetted carrier partners which allows us to offer competitive rates with exceptional service to our valued clients. The market remains extremely tight right now due to the high demand for trucks. The market will shift again but most likely not until early 2021.
Load to truck ratio on 7/20/2020.
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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