LTL & Truckload Market Update 05/13/22
Weather Updates
Severe storms brought more rain and high winds to the flooded Red River Valley on Monday. The storm continued to press east with hail and damaging winds in front of it. Forecasts showed elevated risks to continue all week across the Central Plains and Midwest for high winds, hail, and tornadoes. Outlooks show an above-average risk for the Red River Valley, Illinois River Valley, the Mississippi River north and south of St. Louis, and tributaries in the areas. Flooding can bring challenges to freight movement as roads and bridges are compromised, forcing re-routes of freight to protect life and property.
CVSA (Commercial Vehicle Safety Alliance) Roadcheck May 17-19, 2022
For additional information regarding this year’s Roadcheck, visit roadcheck.org.
- This year, Roadcheck will focus on wheel ends. Wheel end components are critical parts that help maintain the stability and control of the truck and trailer and are key components to braking functions. Wheel ends typically account for 25% of all vehicle out-of-service violations.
- During Roadcheck there typically is a dip in availability with TL carriers, as well as some LTL carriers run into delays in transit due to inspections.
- During Roadcheck 2021, 40,000+ Level I, II and III Inspections were conducted with 20.9% of inspected equipment, and 5.5% of inspected U.S. drivers, being placed out of service from Level I inspections. 5.8% of Level II inspected drivers and 4.8% of Level III inspected drivers were also placed out of service.
LTL Updates
- Diesel fuel pressed higher to a new record again this week at $5.623 for a change of 2.07% from last week’s $5.160 price, and up $2.437 from one year ago, keeping LTL freight surcharges elevated. Revised forecasts show shortages related to maritime changes and geopolitical issues continue to impact the price of diesel, leading to elevated prices longer than previously projected.
- Flooding, weather, capacity and embargoes are impacting lanes including Atlanta, Chicago, Cincinnati, Dallas, Denver, Fargo, Grand Forks, Indianapolis, Los Angeles, Minneapolis, Memphis, and St. Louis markets.
- Lagging colder temperatures are keeping freeze protection services active across the western Rocky Mountain region, Sierra Nevada, and in western Canada. All freezable freight should have protection added, which may result in additional charges and transit delays from carriers strategic re-routing of equipment to protect your freight from freezing temperatures.
TL Updates
- Flatbed demand continued rebounding this week with a 73-1 load-to-truck ratio, although some states (NV, NM, AZ, and ND), are lagging in the rebound of demand. Expect this trend to continue as we enter CVSA Roadcheck week 2022, May 17-19.
- With the Northeast having some of the highest diesel prices in the nation, it’s forcing some carriers to avoid the region all together. With carriers looking to exit the Northeast coupled with rising fuel costs, we could see available capacity tighten in the region. This, in turn, could elevate rates in those markets or at the very least prevent them from bottoming out further.
- While most carriers are looking to avoid the NE, the SE is starting to pick up and most notably we are seeing elevated rates on outbound FL and GA shipments. As produce picks up, these markets will become more difficult to navigate.
Embargoes:
- AAA Cooper Transportation: No Shipments over 96” in length
- ABF: IB/OB CA, CT, IL, MA, ME,NH, NV,OH, RI, and VT
- A. Duie Pyle: Weight restriction over 9,000 lbs., no more than 7 pallets
- Clear Lane: IB FL
- Central Transport: OB/OB Portland, OR, Central Point, OR, Everett, WA, and Tacoma, WA
- Daylight:
- IB FL
- IB CO
- Chicago/California weight restrictions over 7,499 lbs
- DHE (Dependable Highway Express): No More than 6 Pallets, IB/OB San Diego
- Dotline: CA TO NB, KS, MN, and TX
- Dohrn: IB/OB MSP
- Estes: OB City of Industry
- N&M Transfer:
- Residential PU/DEL
- IB/OB IN
- IB/OB 490-495 (Lower MI)
- Oak Harbor: Reno Terminal
- Pitt Ohio:
- IB CT
- IB/OB Florida
- R&L: No shipments over 8ft
- SAIA:
- No Shipments over 15,000 lbs., 7+ Skids
- IB/OB SAC
- Southwest Motor Transport:
- IB/OB Dallas, TX
- IB/OB Tyler, TX
- Any shipment over 7,500 lbs., and/or 6 Pallets
- Standard Forwarding: IB/OB ANK terminal which is Iowa and some parts of Illinois
- TForce Freight:
- Portland OR
- No Freight over 8 ff
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