Recon Logistics - Freight Advisors

Recon Market Update - December 10, 2021

Posted by Hank Newman on Dec 10, 2021 2:30:58 PM
market-update-heading
 
2022 is almost upon us and we all know that 22 is a GREAT number so we're expecting great things coming!  This isn't an official announcement, but some of you will have noticed Recon's new image being slowly rolled out (logo below and look for a new TMS splash soon).
 
Our new marketing division will accelerate in 2022 and along with new content, videos, training, etc.  We are also moving into new business segments which could be really exciting.  Recon's "Center of Excellence" will roll out later in the year to facilitate Recon's first ever User Conference and a planned Logistics Training Series will be unique in our industry.  Stay tuned!!
 
Regarding our industry - I keep waiting for something "new" to come along to discuss, but it appears to be the same old, same old and I believe this will last well into 2022 if not into

2023.  Our "Supply Chain Crisis" isn't going away in 2022 which means capacity will remain tight, rates will stay high, and service will suffer.  Container ships waiting off LA Ports continue to set records despite political theatrics.  Many are forced to wait further out so they aren't in the public eye any more, but they are still out there.  Expect the Unexpected (which makes it expected?).  Fun.
 
Companies are, however, perhaps starting to look at the LTL industry with new plans in sight.  Take Knight-Swift's acquisition of AAA Cooper and now MME.  It would seem to follow that a western and northeastern regional player may be next which could create a new national network with a massive TL segment to handle the linehaul.  Could it work? 
 
Regarding capacity, there are opportunities out there for enterprising individuals for sure, but with new class 8 truck availability 12-18 months out, the used truck market 50% overpriced, and trailer availability even worse, it's 2023 or 2024 before we see the new Recon Dedicated Fleet in action!
 
TL rates have jumped over the past few weeks to a now record $3/mile!  We follow both Truckstop.com's and DAT's spot and contract rates weekly and last week's average was $2.98.  This is coming off a low of $1.47 in early May, 2020.  That's right - rates have DOUBLED in 19 months!!
 
LTL Performance continues to struggle and there doesn't appear to be any relief any time soon.  Let's all hope we don't get hit with a serious winter weather event or we could plummet to new lows!  Everyone is in this boat so we will reiterate the same advice we've been preaching for a long time now - use BEST WAY carrier routing and EXPECT shipment delays!  
 
If there is one potential silver lining it may be that LTL pricing is reaching a long-term high in YOY % trends.  Maybe LTL pricing and TL pricing will be flat in 2022?
 
Updated charts below including Knight-Swift's new LTL "network" and the LA Port situation.
 
Enjoy!
Knight-Swift Transportation - LTL
 
Container ships waiting in Pacific and at berths

Weekly Carrier Performance

DAT Capacity v Dry Van Rates

LTL PPI YOY Change

 

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