When will the next wave of trucking capacity hit the market?

Chart of the Week:  Employment Not Seasonally Adjusted – Truck Transportation, Equipment Orders – Class 8 Vehicles – USA SONAR: EMPN.TRUK, ORDERS.CL8

One of the biggest questions of 2021 for trucking is whether a wave of capacity will enter the market that stabilizes the current elevated spot rate environment. This is a question many transportation providers struggle with each year as they attempt to balance the need for growth versus cost control. Overextend your fleet beyond demand and you...

https://s29755.pcdn.co/news/when-will-the-next-wave-of-trucking-capacity-hit-the-market

2020 closes with plenty (of freight) left in the tank

Chart of the Week:  Daily Customs Shipments, Outbound Tender Reject Index – USA SONAR: CSTM.USA, OTRI.USA

This final 2020 edition of the chart of the week combines the two most relevant statistics of the year: maritime import shipments and tender rejection rates. Before the pandemic, the two measures had little connection to each other. In 2019, container imports had time to sit in warehouses as shippers were able to plan and prepare for seasonal purchasing patterns to reemerge, allowing them to...

https://www.freightwaves.com/news/2020-closes-with-plenty-of-freight-left-in-the-tank

Prolonged uptick in truck and trailer orders ‘cause for concern’

Reliance Partners CFO Thom Albrecht warns that the bullish parts of freight cycles for carriers are getting shorter in duration on the upside and nastier and longer on the downside. He notes that a shift could be abrupt and felt significantly by carriers when a lot of new equipment is delivered to the market. 

Such deliveries may occur at a time when consumers resume spending on services as opposed to heavy spending on goods, up 7% in recent months compared to an almost 7% drop in services...

https://www.freightwaves.com/news/prolonged-uptick-in-truck-and-trailer-orders-cause-for-concern

Holidays exacerbate the need for telematics

Trucks parked at a warehouse

It’s peak season, and warehousing and trucking capacity have contracted for six consecutive months. Rising online sales are adding more stress to the supply chain, requiring sellers to keep more inventory and occupy more space. 

Transportation companies not only have to replenish products for brick-and-mortar stores like Publix, Kroger, Target and many others. They also need to adapt their supply chains in order to meet the increased demand of their e-commerce business. The November Logistics...

https://www.freightwaves.com/news/holidays-exacerbate-the-need-for-telematics

Carrier profits surge thanks to pandemic freight boom

Chart of the Week:  Operating Ratio for TCA Van Carrier – Company and Leased Fleet, Van Outbound Tender Rejection Index – USA SONAR: OPRAT.VCFOO, VOTRI.USA

The average dry van carrier operating ratio (OR) for Truckload Carriers Association (TCA) members dipped to a multiyear low in September, falling below 94% for the first time since late 2015. Operating ratio is the ratio of operating expense to operating revenue — lower values indicate a more profitable operation. The boundary was crossed as...

https://s29755.pcdn.co/news/carrier-profits-surge-thanks-to-pandemic-freight-boom

Reefer capacity tapped out prior to vaccine release

Chart of the Week:  Reefer Outbound Tender Rejection Index, Van Outbound Tender Rejection Index – USA SONAR: ROTRI.USA, VOTRI.USA

The national reefer — industry slang for temperature-controlled trailers — rejection index (ROTRI) topped 48% for the first time since the index’s creation this week, which could move even higher once the vaccine for COVID-19 begins being distributed in the coming months. This means that shippers that utilize temperature-controlled equipment should be prepared to...

https://s29755.pcdn.co/news/reefer-capacity-tapped-out-prior-to-vaccine-release

Carriers purchasing trailers over tractors during booming freight market

Chart of the Week:  Outbound Tender Rejection Index – USA, ACT Research Dry Van Trailer Orders, Class 8 Vehicle Orders SONAR: OTRI.USA, ORDERS.VAN, ORDERS.CL8

Tender rejection rates continue to hover around all-time highs as carriers struggle to cover the recent freight boom, driving rates and revenues higher. The last time this occurred carriers rushed to purchase record amounts of equipment in 2018. But this time around, trailers are the equipment of choice over tractors.  

This past Monday...

https://s29755.pcdn.co/news/carriers-purchasing-trailers-over-tractors-during-booming-freight-market

Some new drivers will see $7,500 bonuses at YRC Freight, New Penn and Holland

YRC double on highway

Less-than-truckload (LTL) carrier YRC Worldwide (NASDAQ: YRCW) and the Teamsters have agreed to implement hiring bonuses for new CDL drivers. In a Tuesday memorandum to local unions representing YRC Freight, New Penn and Holland, the negotiating committee of the Teamsters informed the rank and file that a new-hire bonus of up to $7,500 could be paid to drivers.

The memo highlighted a provision for increased wage rates previously laid out in the national master freight agreement (NMFA), which was...

https://www.freightwaves.com/news/new-drivers-to-see-7500-bonuses-at-yrc-freight-new-penn-and-holland

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