Truckload Performance in April 2021
April 2021 - Transportation Market Report
The truckload mode stayed remarkably consistent for April. Volumes and rates remained steady. And while some weather issues did occur in the southeast the market persisted.
What to Expect
Expect May to start off very challenging. DOT Blitz Week begins Tuesday, May 4th. Capacity will be a huge challenge this week as drivers are taken off the road to have repairs completed. The problem is exacerbated by drivers who voluntarily do not drive during Blitz Week. Expect rejection rates to climb again and capacity to remain tight. Retail inventories remain low as we transition into the typical back to school season.
Reefer capacity is going to remain tight, and costs will continue to rise through produce season. Dry Vans could plateau, but severe weather-related events like we’ve seen in the Southeast will create headwinds for capacity loosening and rates leveling or falling. Be diligent with order and tender lead times. Work with your customers on market conditions and initiate conversations around chargeback waivers.
We anticipate Flatbed costs and capacity to remain elevated and restricted for the coming months. Construction volumes should remain high (steel, lumber, equipment), the manufacturing and automotive sector continues to improve, and oil consumption continues to rise.
Length of Haul Rejections
The “Tweener” lane continues to have the highest Rejection rate by category. Previously, drivers could make the 450+ mile runs in a day. Due to HOS regulations, they are no longer able to do so. Ensure you are providing more than adequate lead time, and ensure appointments are set at both the shipper and receiver.
Key Takeaways
Tender lead times are key. Each day a load isn’t covered prior to the ship date results in increased costs. With Spring here, IMDL operations will be less susceptible to weather-related events and will be a cost-effective alternative in some lanes. However, due to high import volumes, non-contracted IMDL volume will be challenging alternative from a cost and capacity standpoint.
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