|The spot market is not going to collapse overnight but we have seen a very slight downturn to rates in certain areas after the Labor day peaks. We do traditionally see rates fall after holidays so this is normal, but 2020 has not been a normal year in any sense.|
We are seeing more dramatic changes in areas such as Ontario, CA, and Los Angeles, CA, Allentown, PA, Memphis, TN, areas, and gulf coast areas such as Mobile, AL due to hurricane Sally, and of course the wildfires in California have also caused disruption.
However, volumes are staying stable, with carriers being aware Los Angeles continues to be one of the hottest areas in the USA right now with the volume of imports coming in to support much of the USA as we are nearing peak retail season, especially for clothing, furniture, groceries, online electronics, and general merchandise. Looking at maritime data shows the amount of freight coming into the USA which will eventually end up on trucks.
Se we have seen a dramatic distribution of money flowing towards tangible goods, with intangible goods such as airlines, lodging, entertainment, restaurants, and bars all being down. So it is all good right now for carriers as all tangible goods are needed to be shipped by truck and intermodal in the USA.
Even though we are seeing reduced jobless benefits we are still seeing this continuous demand for tangible goods and consumer spending all leading to having a strong holiday season for the freight market.
Thank you for being with us today.
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Tell us what freight are you moving this week and we will do all that we can to find you the trucks and rates.
Thank you and have a great week, stay safe!