Recon Logistics - Freight Advisors

Weekly Update - November 9, 2021

Posted by Hank Newman on Nov 9, 2021 3:58:07 PM
"TL Rates Flat in 2022!!!"  
Well that sounds nice, but after a whopping 33% increase in TL rates in 2021 vs. 2020, I’m not sure that helps much.  If you want the positive news, then I believe actual TL rates will drop about 4% in 2022, but watch out for SNEAKY DIESEL!
For the 99% of us who ship under real rates (vs. the Wal-Mart’s of the world), year-to-year large swings are actually quite normal.  In fact, plus or minus 15% is not at all unheard of and you can see the evidence in the TL Rates chart below along with some Year-Over-Year % chance stats.  Pretty interesting!
There are still way too many extremes in the world right now to bank on this prediction with seemingly no one wanting to work, a supply-chain crisis that won’t be solved soon due, in large part, to CA laws and regulations, $Trillions in continued handouts, and our current energy policy.

That last point leads to a diesel fuel price comment.  I’ve included a long-term chart of diesel so you can see where we’ve been and where we are headed.  I’m convinced you will see over $4/gallon for diesel for a while so fuel surcharges (LTL too!) are going to add even more pressure to overall rates.  Fun!

LTL Carrier Performance - after an absolutely abysmal summer, could we be seeing a hopeful return to 80% + performance??  Sure could use it!




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

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