Market Update - Week of August 17, 2020
Chris Peckham • 4 min read • August 20, 2020
Truckload
Capacity in the truckload space remains incredible tight, with volumes continuing to almost inexplicably rise. Two weeks ago, the Outbound Tender Volume Index (OTVI) was slightly over 13,500, and today it passed 15,000. To give some context, when COVID-19 began having its damaging effects in late March, the OTVI peaked at 12,400. There are several drivers contributing to this exponential rise in volume:
- Imports. Import volumes began to climb in June, with strong volumes in July. August, so far, has also been strong. This is related to a few things:
- PPE. PPE production remains strong with no real drop off in sight.
- Home gym equipment, outdoor furniture, etc. orders continue to increase
- We are moving into the traditional peak season for ocean freight as retailers ramp up for holidays.
- Although mall traffic is essentially non-existent, consumer spending continues to grow in the online space.
- Essential verticals (food/bev/pharma/etc.) continue to see strong order volumes.
- PMI (Purchasing Manager’s Index) has risen in 3 consecutive months and hit 54.2 in July. This is a general outlook for manufacturing, and anything above 50 indicates expansion and growth.
The good news, if you can call it that, is that this will not go on forever. Consumer confidence is falling again, and the government stimulus packages won’t continue forever. These two variables indicate that capacity will loosen eventually.
Two weeks ago, The Outbound Tender Rejection Index
was at 21%. Today, it sits at 23.3%. This also contributes to the strong volumes we previously mentioned. Carriers are rejecting loads nationally at some of the highest percentages ever, as the spot market remains more lucrative as opposed to current contracted rates.
The national average cost per mile has stayed steady at $2.19 for two weeks, which is 8% higher than the average in July.
The dry van load to truck ratio (the amount of loads available per truck) has dipped about 4% from last week. Currently, it sits at 5.02. Spot rates, however, are up about 2.4% from last week, and IMDL remains a strong option at $1.66/mile, which is up 10% from the $1.51/mile in July.
Ocean/Air:
In terms of cost, the ocean freight market continues its historic climb. Capacity is increasing, but that’s because the volumes are there to support it. Two weeks ago, the spot rate for a container from Asia to the US West Coast was around $2800. Today, it’s slightly over $3000, which is a 7% increase. To put that in perspective, one year ago the costs were about $1,425; which is roughly up 110% year over year. The carriers are also looking to push another GRI through in August, and if they are successful, this may not be the peak.
Two weeks ago, the Asia to US East Coast rates were around $3350. Currently, they are at $3500, which is about a 30% increase from what the rate was last year ($2,700). The North Europe to US East Coast rates remain stable; essentially flat to last year, which was around $1750-$1775.
Terminal operations remain challenging on the West Coast, and every terminal right now is publishing on their website that they are short on chassis and truckers should bring their own.
Air freight remains incredibly challenging. Rates have only moderately softened and buy capacity remains extremely tight. Apple, Samsung, and Sony all have major product launches coming in the next few weeks, so this will compound an already tight market. We predict that rates will exceed what we have seen already this year.
Fuel
Fuel remains consistent with virtually no change in the National Average pricing of On-Highway diesel. This week it’s $2.427, which is down $0.001 from last week, and up $0.003 from two weeks ago. Below is a year on year comparison of the first 33 weeks of 2019 and 2020.
The biggest challenge we face is predicting what is going to happen next. We are closely monitoring the market, so if you have questions or want to jump on a call with us, we would be more than happy to get in touch with you.
Innovative managed transportation provider continues to invest in hiring and developing the best talent within the logistics space QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, announced Brendan Lawler has joined as Senior Manager of Strategic Planning and Customer Service. Lawler brings in over seven years of experience leading diverse, cross-functional teams in challenging, chaotic, and ambiguous environments. In his new role, Lawler will own all aspects of planning, optimizing, appointing, tracking and servicing customers’ freight. He looks forward to standardizing the planning and customer service functions within the department and incrementally improving the throughput of the team through process improvement and technology integration. “I am energized by the opportunity to help continue FreightPlus’s growth as a data-driven transportation management solutions provider,” says Lawler. “I’m eager to use my experience in leading teams toward operational excellence to enhance the customized service for our clients. FreightPlus's mission to ‘simplify complex logistics together’ embodies the people-driven culture that I value so deeply. I look forward to joining a company that is team-focused and has a proven track record of transforming ideas into innovative solutions that create sustainable impact.” Lawler previously served as a Captain in the Marine Corps and as Senior Operations Manager within Amazon Transportation Services, where he focused on driving operational excellence and utilizing new technology to drive process improvements. In his tenure, he was responsible for developing and implementing new network-level process improvements for both under-the-roof (UTR) and over-the-road (OTR) operations, as well as spearheading the effort of optimizing the synchronization of warehouse and transportation operations. With revenue and employee count quadrupling over the past five years, FreightPlus was listed no. 184 on the Inc. 5000 list of fastest-growing private companies in America in 2022. Chief Operating Officer Ben Graeff comments, “I am so excited to welcome Brendan to FreightPlus. Brendan brings a deep background in operational excellence from his time in the Marine Corps and Amazon Transportation. He is a quiet leader that leads by example, lives in the day-to-day details, and is the exact right person to help us scale our operation and customer service teams through our continued growth.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management, offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first class customer service with innovative technology and industry best practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit FreightPlus.io for more information. ### Media Contact: Courtney Conyers Marketing & Communications cconyers@freightplus.io
For the 2nd Time, FreightPlus Appears on the Inc. 5000, Ranking No. 184 on the List of Fastest-growing Privately Held Companies in America FreightPlus recognizes a three-year revenue growth rate of 2,846% NEW YORK, August 16, 2022 – Today, Inc. revealed that FreightPlus is No. 184 on its annual Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America. The list represents a one-of-a-kind look at the most successful companies within the economy’s most dynamic segment—its independent businesses. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other well-known names gained their first national exposure as honorees on the Inc. 5000. “We are honored to be featured on the annual Inc. 5000 list for the second year in a row,” said Stephen Aborn, FreightPlus Chief Executive Officer. “This award and our ranking reflect the continuous dedication from our team to providing our customers with the people, technology and processes to build best-in-class logistics programs. We are thrilled to be recognized as we strive to bring customer-centric and innovative solutions to the world of logistics.” The companies on the 2022 Inc. 5000 have not only been successful, but have also demonstrated resilience amid supply chain woes, labor shortages, and the ongoing impact of Covid-19. Among the top 500, the average median three-year revenue growth rate soared to 2,144 percent. Together, those companies added more than 68,394 jobs over the past three years. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000 . The top 500 companies are featured in the September issue of Inc. magazine, which will be available on August 23. “The accomplishment of building one of the fastest-growing companies in the U.S., in light of recent economic roadblocks, cannot be overstated,” says Scott Omelianuk, editor-in-chief of Inc. “Inc. is thrilled to honor the companies that have established themselves through innovation, hard work, and rising to the challenges of today.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
Innovative managed transportation provider brings on LTL industry leader to continue to support rapid growth QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, has announced the expansion of their company with the hiring of Curtis Garrett, joining as Senior Vice President of LTL. Garrett will focus on improving carrier relationships and interactions through utilizing technology and strategic processes. With revenue and employee count quadrupling over the past five years, FreightPlus was named the second-fastest growing privately held company in Massachusetts by the Boston Business Journal. FreightPlus was also listed as the 783 rd fastest-growing company on the 2021 Inc 5000 list. CEO Stephen Aborn commented, “I am thrilled to have the opportunity to work with Curtis. Expanding our team with his experience is a great step in the right direction for FreightPlus as we continue to look for the most innovative and ambitious thinkers in the logistics space.” Garrett brings fifteen years of LTL experience prior to joining FreightPlus, including eight with ODFL in operations, driving, pricing, yield, and W&I. Since departing from ODFL, he has spent six years on the 3PL, software and consulting side of the industry, recently serving as Vice President of Pricing and then Chief Strategy Officer at Reconex. Garrett is fascinated with technology and is truly a student of the industry. Having overseen hundreds of millions of dollars in revenue on the business profitability side, as well as pricing and carrier relationships and procurement, Garrett is more determined than ever to break down silos and get everyone on the same playing field. “I am beyond excited to join FreightPlus”, said Garrett on his new role. He continued, “from what I have witnessed, this company has all the right parts and pieces – customer obsession, innovation, and grit – to do big things in the freight industry and I could not be more excited to be a part of it.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first-class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
FreightPlus has been named to Boston Business Journal's exclusive 2022 Fast 50 list for the first time.
Innovative managed transportation provider continues to invest in executive team to support the company’s rapid growth. QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, announced Ben Graeff has joined as Chief Operating Officer, the first in company history. Graeff will be responsible for the company’s operational, managerial, and product strategy, as well as driving day to day and quarterly results and innovation in FreightPlus’ next stage of scale and growth. With revenue and employee count quadrupling over the past five years, FreightPlus was named to The Inc. 5000 list of fastest-growing private companies in America in 2021. CEO Stephen Aborn commented, “I am thrilled to welcome Ben to FreightPlus. His natural ability to lead and his experience scaling large businesses at the intersection of technology and operations will be invaluable to our growth story. Every person or partner that works with Ben will be better for it.” Graeff brings over 10 years of experience building technology and businesses at Amazon. Prior to joining FreightPlus, he served as Sr. Manager, Product Management and Data Analytics within Amazon Transportation Services. During his tenure, Graeff was responsible for P&L ownership in Amazon’s consumer retail division, developing new software and customer experiences for Amazon Prime, as well as product development and business results in operations and logistics across the globe. “I am excited to join a company whose mission embodies solving complex problems in partnership with its customers,” said Graeff on his new role. He continued, “Like all great organizations , FreightPlus is powered by its people. I’m eager to join this growing team and blend my experience in building and developing organizations with delivering fast-paced results through people, process and technology. FreightPlus’ commitment to driving long-term partnerships, cost savings and strong service for our customers aligns closely to my core values. I look forward to continuing to build the products, processes, programs and technologies to drive FreightPlus’ future growth as a data-driven transportation management service.” About FreightPlus About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first-class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
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CEO of FreightPlus Stephen Aborn Featured in Inbound Logistics
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