Less-than-Truckload Performance in August 2021
August 2021 - Transportation Market Report
“The LTL market remains volatile and took another hit as we enter hurricane season. FMCSA has issued an Emergency Declaration for AL, AR, LA, MS, TN, and TX in response to Hurricane Ida. This declaration grants temporary relief for drivers and carriers who are providing direct emergency response transporting supplies, goods, equipment, fuel, and people. Several carriers have closed and/or limited operations in multiple terminals in the states listed above. Closing terminals and limiting operations has long term consequences in the LTL space. It is not just a flip of the switch, closed today, back to normal tomorrow. Freight doesn’t stop, and in the case of an emergency situation like this, inbound freight becomes heavier which further backlogs the locations impacted. Considerations like facility damage, equipment damage, road closures, displaced employees, and shipper/consignee closures also play a huge role. Terminals in the affected states will most likely be backlogged through the month of September.” - Chris Gula, Director of Operations - FreightPlus
What's Happening in LTL?
•Delta variant still causing staffing complications – one national carrier was down to 40 cases in their network a few weeks ago and in just 2 weeks jumped to 360 employees affected.
• Rising operational costs – wage increases, sign-on bonuses, overtime rule adjustments, recruiting costs, retention efforts, expansion to existing facilities and in building new facilities, etc.
• Equipment shortage – this is quickly becoming a bigger concern than the driver shortage for a lot of carriers. Trailer manufacturers can’t keep pace due to their own staffing issues and consignees are not turning the equipment back as quickly as needed.
• Carriers need to be extremely efficient considering the current volume and are seeking help from their partners in any way they can get it.
• Carriers are focusing on accessorial charges to cover additional operating costs and to drive compliance from shippers and consignees.
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