LTL & Truckload Market Update 05/06/22

LTL & Truckload Market Update 05/06/22

Weather Updates

Flooding is increasing in North Dakota along the Red River Valley with Neche and Pembina, ND under water. 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.  

LTL Updates

  1. Diesel fuel set a record high this week at $5.509 for a change of 6.76% from last week’s $5.160 price, and up $2.367 from one year ago, keeping LTL freight surcharges elevated. Revised forecasts show maritime changes and geopolitical issues continue to impact the price of diesel and may keep prices elevated longer than previously projected. 
  2. Flooding, weather, capacity and embargoes are impacting lanes including Atlanta, Butte, Chicago, Cincinnati, Dallas, Denver, Fargo, Great Falls, Indianapolis, Jacksonville, Los Angeles, Minneapolis, Memphis, Portland, Seattle, and St. Louis markets.  
  3. Lagging colder temperatures are keeping freeze protection services active across the central Rocky Mountain region and in 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

  1. According to the OTVI (outbound tender volume index), overall freight volumes were up week-over-week. Major markets like Ontario, CA, Atlanta, GA, and Harrisburg, PA all had increases. Despite the uptick in freight, the OTRI (outbound tender reject index) continues to drop. This is due to the available capacity outweighing freight demand. 
  2. Flatbed demand dropped significantly in mid-April to a 58-1 load-to-truck ratio, with some states finally getting below 18-1 (NV, NM, AZ, and ND), however, in the last couple of weeks, it has been on an upward swing again hitting 70-1 this week, primarily due to agricultural and construction season kick off.  
  3. Since shippers are in the driver seat from a pricing standpoint, spot rates continue to fall. The Truckstop.com national spot rate average fell below $3 a mile, sitting at $2.94 per mile. 

Embargoes:

  1. AAA Cooper Transportation: No Shipments over 96” in length
  2. ABF: IB/OB CA, CT, IL, MA, ME,NH, NV,OH, RI, and VT
  3. A. Duie Pyle: Weight restriction over 9,000 lbs., no more than 7 pallets  
  4. Clear Lane: IB FL  
  5. Central Transport: IB/OB Portland, OR, Central Point, OR, Everett, WA, and Tacoma, WA  
  6. Daylight:
    1. IB FL
    2. IB CO
    3. Chicago/California weight restrictions over 7,499 lbs.
  7. DHE (Dependable Highway Express): No More than 6 Pallets, IB/OB San Diego
  8. Dotline: CA TO NB, KS, MN, and TX    
  9. Dohrn: IB/OB MSP  
  10. Estes: OB City of Industry
  11. Midwest Motor Express: IB/OB Dickinson ND
  12. N&M Transfer:
    1. Residential PU/DEL
    2. IB/OB IN
    3. IB/OB 490-495 (Lower MI)
  13. Oak Harbor: Reno Terminal
  14. Pitt Ohio:
    1. IB CT
    2. IB/OB Florida
  15. R&L: No shipments over 8ft
  16. SAIA:
    1. No Shipments over 15,000 lbs., 7+ Skids
    2. IB/OB SAC
  17. Southwest Motor Transport:
    1. IB/OB Dallas, TX
    2. IB/OB Tyler, TX
    3. Any shipment over 7,500 lbs., and/or 6 Pallets
  18. Standard Forwarding: IB/OB ANK terminal which is Iowa and some parts of Illinois   
  19. TForce Freight: Portland OR, No Freight over 8 ft

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