Last week we saw the capacity crunch continue after the Labor Day holiday with spot market rates still holding strong.


Is the capacity tightness and high pressure on rates going to continue?


We believe it will, there is a lot of demand for truck load capacity from the nation’s largest retailers that are running on low inventory and industrial economy is in recovery. On the supply side, the carriers are having trouble seating their trucks as they need to.


We have spoken about many of these challenges facing the trucking industry such as limited operations of driving schools, we believe will take many months at which new capacity can be brought back into the industry which we believe will be slower and take some time to work through to get back to normality.


The trucking industry does normally do a self correction but the levels of freight that we are seeing compared to capacity, we see the time it will take for capacity to catch up with that freight, will be a while and this capacity crunch will continue to the end of this year and most probably through to the 

second quarter of 2021.


As we move into the winter months, certain demand will reduce such as home improvements and any construction will start coming off line. We will see certain other areas such as food and beverage to increase further and some industrial growth.


West Coast is driving a lot of the freight with still very tight capacity, and as carriers head to West Coast to take advantage of the higher rates, the East Coast has been abandoned by carriers causing much tighter capacity there.


Chicago also started to become extremely tight on capacity, and Chicago to Atlanta spot rates have been much higher than average. This shows us Carriers are fully in charge of the spot market now. Shippers and Brokers are no longer in a position to control freight rates meaning brokers and 

shippers are having difficulty to cover freight across the market.


Freight rates continue to rise, with nearly half the lanes in the country seeing per-mile rates above the average. That means carriers are being more selective about what they haul as demand is simply outstripping capacity right now and nothing points to that changing anytime soon.

We thank you for your time and hope you found our text interesting and useful. Please note all of the above is based on our experience, research, and opinions and should at no time be used or given as any form of business consulting.


We are here to help, Contact Us to tell us what freight we can help you move this week. As always we are here to help you move your freight.

Tell us what freight your are 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!


The following two tabs change content below.

AMI

Ameri Management, Inc. (AMi) provides American businesses with high-quality, reliable, and affordable Freight Broker related services. Regardless of the type of business you run or the kind of products that need to be shipped, AMi has the right carriers for you. Our Freight Broker related services specialize in moving Full Truck Load (FTL), Less Than Truck Load (LTL), and Intermodal freight across all states in North America. Our years in the industry has helped us gain the experience, tools, and the dedicated carrier relationships needed to offer first-class Freight Broker related services.

Latest posts by AMI (see all)

  • - September 21, 2020
  • - September 14, 2020
  • - August 31, 2020

Visit Us On FacebookVisit Us On Linkedin