Recon Logistics - Freight Advisors

Recon Market Update - May 21, 2021

Posted by Hank Newman on May 21, 2021 3:01:05 PM

Today's focus is on what we're seeing in longer-term pricing trends for LTL and TL.

For LTL pricing, we look to the Feds LTL PPI for long-term guidance and the signal here (shouldn't be a surprise) is that LTL pricing is starting a new leg up.  Carriers have had pricing power for some time now, but TL is always faster to respond vs. LTL.  Currently, we are hearing that many LTL carriers are looking for double-digit increases, cutting unprofitable business, and not even considering new RFP's (unless you're a preferred partner like Recon is ☺).
Below are two LTL PPI charts - one is a 12-month average YOY comparison (really long-term) and the other is a rolling quarterly month over month measure.  The month over month set a new record and
Update hand writing with a blue mark on a transparent board
 indicates strong pricing increases right now while the long-term chart suggests that trend will stick around for a while.
TL pricing - we can look at the TL PPI as well as spot vs. contract rates.  We all know spot rates have run hard for months now, but contract rates are rising quickly to resume their normal position as higher vs. spot.  Spot rates should cool down some, but we are at "new normal" levels of elevated pricing.  The TL PPI also set a new record.
Clearly higher pricing is coming and will stick around so what's the solution?  Look hard at internal processes - optimize order volumes, reduce sequential shipments, and build in more lead-time.
LTL PPI Monthly
TL Rates
Cass Linehaul Volume Since 2007
TL PPI YOY Increase

Tags: Freight Class, Accessorials, LTL, Freight Rates, LTL Carrier Cost, Rules Tariff, Logistics, LTL Service, Limited Access, Freight Technology, TMS, Freight Insurance, Freight Claims, Freight News, Freight Update

We want to help you Ship SMARTER!!

Take advantage of our Free Consult Offers...

So much is changing in the freight industry. Carriers are changing rules tariffs regularly, adjusting their methods of pricing and unfortunately, they don't really give you a lot of notice or explanation.

Do you need a fresh set of eyes looking at your processes? Take advantage of a quick free consult:

Free 30 Minute Freight Management Consultation

Prefer to learn at your own pace??

Check out our Complete Guide to LTL Shipping...

  • What's the difference between Truckload and Less-than-Truckload (LTL)?
  • Is my Bill of Lading completed correctly?
  • What do Logistics Companies do?
  • What is Freight Class?
  • and much more...

Your Complete Guide to LTL Shipping

Subscribe to Email Updates

Recent Posts