Recon Logistics - Freight Advisors

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Recon Market Update - February 16, 2021

Posted by Hank Newman on Feb 16, 2021 1:40:51 PM

Just as rates seem to stabilize a bit and LTL performance improves, mother nature hits and messes it all up.  Certain areas of the country are taking a beating which is having an impact on capacity, service, and rates.  If it ain't one thing, it's another!

Freight Industry Update
Focus this time is on a few issues percolating in the LTL industry.  As many of you know, UPS Freight was bought by TFI and will be re-branded to T-Force Freight sometime later this year.  The significant part is that TFI is already aggressively signaling they will do away with UPS' "unprofitable freight".  This could have a significant ripple impact across LTL pricing.
So what is "unprofitable freight"?  Well - think of anything that isn't a Business to Business, dock to dock, clean 48x40x40 pallet with a heavy profile.  Extra-long or over-sized pallets, any type of "remote" or non-traditional warehouse-type delivery location, "light" freight, restricted dock hours, etc, etc.
If you have that, then the carriers are focusing on yield and may focus on larger than average increases for that kind of freight.  UPS Freight was more of a "price-leader" vs. a service leader so if they get pricing discipline, expect that to send a wave through the industry and see more carriers price like an Old Dominion.
One more thing on LTL pricing and service.  We are noticing in this new "COVID" world that many shippers/receivers are tightening dock hours.  Many are closing early (we've even heard of locations closing at noon???) and this is the opposite of being "carrier-friendly".  We realize the conditions, but understand this will absolutely affect carrier performance!
DAT v LTL Performance 2.16.2021
***DAT Capacity is a measurement of the supply of available trucks in the marketplace relative to loads needing a truck. A higher number means more loads than trucks available.
LTL Performance is based on metrics captured daily by the Recon Operations Teams including damages, late deliveries, missed pickups, etc. These metrics are inclusive of Regional and National LTL carriers.
DAT v Spot Dry Van Rates 2.16.2021***DAT Capacity is a measurement of the supply of available trucks in the marketplace relative to loads needing a truck. A higher number means more loads than trucks available.
Spot Rate is the national average cost per mile being quoted by carriers at a given point in time.

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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