We are at the start of another week and we are already in Q4 of 2020. We wish everyone a successful and safe Q4.
In October volumes seasonally dip, we are seeing a very slight dip across the nation generally, but volumes are still well up. There is plenty of freight coming in through the ports and networks across the country are at full capacity.
In markets such as Atlanta, GA, Ontario, CA, Allentown PA, Houston, TX, Little Rock, AR, Tallahassee, FL, St Louis, MO, week on week freight volume is down, but overall the volumes are still above annual market averages.
Looking at outbound capacity and inbound volumes, showing freight flow is definitely on the side of the carrier, showing carriers do not have enough truck capacity to meet the market demand. Backhaul rates are up as well, but carriers are still having difficulty managing their trucks’ positions.
Outbound volumes are still showing extremely high, imports at the ports are extremely high, and we are seeing this pressure being put on capacity will not drop in this quarter.
Long haul freight lanes are still up, the medium and short-haul lanes have dipped a little, but these are expected to go back up in the coming weeks. October is generally lighter for these types of hauls, and then in November and December, these medium and short-haul lanes will begin to pick up again.
Vans and Reefers have extremely high pressures, with tight capacity in the North East and midwest and Los Angeles has a very high volume demand.
As demand continues, rates will continue to be pressured.
Almost one in 5 loads seems to be rejected by carriers as they have so much choice, this is at an extraordinary level. Shippers are also rejecting carriers heavily due to rates being too high. While there is a major shortage of trucks in the market, shippers are facing extremely difficult times as inventory continues to fall.
As shippers traditionally worked on a lean inventory system, a lot of companies have tried to catch up on demand and replenish inventories, this is also placing another layer on top of this current freight market capacity crunch that we are seeing.
As these warehouses do start to fill again in time, then we may see some sort of normality return, but until then the crunch will continue.
Carrier capacity is struggling to cover loads, we see this will place a heavy strain over the coming weeks that are going to make for an even tighter 4th quarter. We are looking at high volumes across the country and we have to keep watching the volatility in the market.
The current consumer behavior has not changed for a greater share of finished goods, with the upcoming demand for holiday goods, and highest number of record-breaking imports to the ports are being recorded, intermodal is at full capacity and intermodal rates are close to OTR rates, with all this we see the high volume is going to stay until the end of the year.
As with the number of E-Commerce purchases increases, the number of returns, and the pressure on reverse logistics, this will also flood and put a lot more pressure on regional transportation capacity.
Truck capacity is going to take a long while until it goes to where it needs to be, presently we are not seeing any part of the country that has the capacity that is really needed.