transportation costs

Truckload rates ‘tumbling’ in Q2, report says

A predictive rate index released Tuesday showed truckload pricing “tumbling” further in the second quarter while less-than-truckload rates stabilize from a “sharp drop” in the first quarter.

The TD Cowen/AFS Freight Index — a compilation of data from third-party logistics provider AFS Logistics and investment bank TD Cowen (NYSE: TD) — showed excess truck capacity and soft demand had carriers competing for loads, driving rates lower during the first quarter.

The index captures trends from AFS...

Will high freight rates cause hyperinflation?

Retail inventories still challenged

Transportation costs are up approximately 20% since 2019, so it’s only natural to ask when these costs will start to drive inflation. 

The short answer is “no time soon.” The reality is that for most products, transportation remains a relatively small cost of the entire item. Outside of raw materials, most consumer goods have so much cost coming from marketing and retail markups that the impact of higher transportation costs to the consumer will be quite small. 

Domestic logistics represented...

https://www.freightwaves.com/news/will-high-freight-rates-cause-hyperinflation

White Paper: When and Why Should I Cost Model?

Cost modelling is leveraged by the most competitive and profitable transportation organizations. Whether it is a private fleet for grocery deliveries, dedicated bulk tankers in the chemical industry or a retailer managing inbound via less-than-truckload (LTL) and parcel, cost modelling is the analysis to identify cost reduction opportunities. Understanding and developing an accurate and robust cost model enables a variety of analyses, based on everyday real-world use cases, to increase...

https://www.freightwaves.com/news/white-paper-when-and-why-should-i-cost-model

Generally, just tired of paying these freight rates

This is an excerpt from Thursday’s (3/25) Point of Sale retail supply chain newsletter sponsored by ArcBest.

Facing higher transportation costs at a time of surging demand is prompting the nation’s leading discount retailer to bring more of its transportation in-house. After successfully moving 20% of its freight via private fleet in 2020, Dollar General is seeking to step up its own fleet to mitigate soaring freight costs. Dollar General’s profit and gross margin expanded year-over-year in the...

https://s29755.pcdn.co/news/generally-just-tired-of-paying-these-freight-rates

More retail earnings, more blaming shipping costs for miss

This is an excerpt from Monday’s (2/8) Point of Sale retail supply chain newsletter sponsored by ArcBest.

The Container Store’s (NYSE: TCS) most recent earnings call details the reality of shifting to a greater mix of e-commerce sales at a time when transportation capacity is extremely tight. To manage limited capacity, logistics providers have implemented surcharges and placed limits on its largest customers. These additional costs are putting significant strain on retailer bottom lines at a...

https://www.freightwaves.com/news/more-retail-earnings-more-blaming-shipping-costs-for-miss

High costs straining transportation budgets

High transportation costs to impact earnings

Companies that depend on freight transportation to fulfill core business functions could report disappointing quarterly results due to staggeringly high transportation costs. This could be the case for manufacturers of food and consumer packaged goods, according to one insider with a bird’s-eye view of the industry.

Anshu Prasad, co-founder and CEO of Leaf Logistics, a New York City-based startup specializing in the forward contracting of freight, detailed that thesis in an interview with...

https://s29755.pcdn.co/news/high-costs-straining-transportation-budgets