Freight volumes continued strong.
Traditionally July is a much softer month in freight volumes and spot rates, however this has not been the case this year. The average long haul spot rate has continued to push higher even after July 4th and there is continued uncertainty of when freight volumes will flatten.
There are a number of fundamentals:
This quarter has been challenging for shippers and carriers. We have seen supply chain dislocation and a new challenge to reorganize for both shippers and carriers. With managing where traditional demand was higher or lower, large shippers who would normally be working with the contract market have had to turn to the spot market to meet capacity requirements, as contracted volumes were up and at the same time truck load volumes up.
So the range has been a mix of contracts and spot volumes that have been in a balance to compete.
The largest markets such as North California, Mexico (Gulf Coast), Southern Louisiana, up state NY, Maine, New Hampshire all showed upward rates.
Dry Van is out performing Reefer right now with what we think is due to higher grocery volume / demand as most manufacturing and raw materials volumes are still not at a volume that would justify this increase.
We are continuing to see a constant increase in volumes and most carriers are looking at a good quarter ahead.
USA – Mexican Cross Border & Texas
Last week freight volumes continued to increase across Texas and the border to Mexico especially in Houston, Laredo, San Antonio and Austin where very strong with week on week loads to truck ratio increasing causing a very tight market.
We have seen exceptional number of carriers that have gone out of business and perhaps due to the uncertainty of the market and the increase on freight volumes many carriers have still not increased their fleets. This is causing shippers to have to pay higher rates and for equipment to dead head longer distances.
We expect Mexico cross border truck capacity to remain tight to the end of summer.
Weather Alerts – Monday July 27th 2020
For further information please see source: National Weather Prediction Center
As always we are here to help you move your freight.
If you have any further needs or requirements please contact us and we will do all what we can to serve you.
Have a great week, stay safe and thank you.