Trucking and logistics providers like Titan Transline expect a massive influx of ecommerce freight with the coming holidays. The holidays are peak season for shipping and have always contributed to rising rates and tighter capacity. However, this year everything is different because they are already at elevated levels due to the coronavirus pandemic.
During the pandemic, shoppers were reluctant to go to crowded stores so they opt to purchase products online. With the holiday season fast approaching, consumers are expected to shop early to avoid shortages which they experienced at the beginning of the pandemic. The shopping fever is predicted to continue through to the end of year and 2021 when shippers with depleted inventories have to re-stock. Strong freight demand will put a lot of pressure on spot and contract rates.
Last September, dry van spot rates hit a record-high of $2.37 per mile. However, spot rates will not be rising much more even with tight freight capacity. When freight demand increased in 2018, carriers expanded their capacity and had too much capacity in 2019. This year, carriers will not be increasing their capacity because of economic uncertainties and the pandemic.
Larger fleets are reluctant to add more trucks because they do not how 2021 will look like. The pandemic has resulted to tight capacity and shipper freight surge. Supply chain routes were also affected and carriers have to change shipping patterns. Carriers were able to meet the demand for existing contract freight but they cannot handle another freight surge.
The old saying that “trucks are not where the loads are” is completely true right now because trucks are running more empty miles and they are taking longer at loading docks to get unloaded. The trend is to move light loads to drop trailers and this as created a backlog of equipment across networks. Trailers have never had a higher utilization level due to the surge in demand.
Full truckload is offered by Titan Transline for your freight with space exclusive to your goods in a specially-engineered freight equipment that can mange even the most fragile loads. Competitive pricing is offered on full loads with the option of white glove service that is at the top of the industry.