Topic: Rates and Pricing

DAT said that the number of loads on the DAT One load board marketplace dropped for the second consecutive week, falling 3%, to 1.83 million, compared to the previous week, while falling 7% annually, with truck posts down 6%, to 324,253.

Following May, which saw volume gains help to bump up spot truckload rates, the June edition of the DAT Truckload Volume Index, was somewhat different, in that spot truckload rates were up, while the actual number of loads moved headed down, DAT Freight and Analytics recently reported.

Drewry’s composite global index increased by 10%, driven by significant rate increases on major trade routes.

Freightos highlighted what it called “an unexpected start to Peak Season,” coupled with Red Sea-driven congestion, tight capacity, and low empty container levels at Asian hubs to roll containers and push ocean rates up sharply.

A series of factors will likely contribute to keeping freight rates in check this year.

Three of our top parcel industry sources offer their takes on the most consumer-facing segment of freight transportation and logistics. They say that while market conditions continue to affect how carriers approach the market, shippers are leveraging the benefits of lower package demand in the form of better pricing.

Battle lines continue to be drawn in the proxy bout and attempted management takeover of Atlanta-based Class I railroad carrier Norfolk Southern by activist investor Ancora Holdings LLC.

The new edition of the TD Cowen/AFS Freight Index, which was recently released by New York-based investment firm TD Cowen Inc. and Shreveport, La.-based 3PL and freight audit and payment company AFS Logistics LLC, was somewhat mixed, with less-than-truckload (LTL) and truckload rates steady, and parcel rates being impacted by fuel surcharge increases and various accessorial charges amid lower demand.

In this podcast, Jeff Berman, Group News Editor for Logistics Management and the Peerless Media Supply Chain Group, interviews Ken Adamo, Chief of Analytics for DAT Freight & Analytics.

The new edition of the TD Cowen/AFS Freight Index, which was recently released by New York-based investment firm TD Cowen Inc. and Shreveport, La.-based 3PL and freight audit and payment company AFS Logistics LLC, highlighted the impact of muted demand for truckload, less-than-truckload (LTL), and parcel activity, from the third quarter to the fourth quarter.

Earlier today, various media reports indicated that the United States and England have taken retaliatory measures against the Yemeni Houthi pirates for their ongoing series of attacks on the Red Sea shipping lane, in response to the ongoing Israel-Palestine conflict.

Alternate routes are adding cost, time to global trade

But, interest rate cuts could change the market quickly.

Seasonal trends impacted lower spot market volumes and rates in the September edition of the DAT Truckload Volume Index.

The van TVI was up 8.0% compared to July, at 241, and down 8.0% annually; the reefer TVI was up 4% compared to July, at 175 and down 5% annually; and the flatbed TVI was up 9% compared to July, at 259, and down 0.4% annually;

Memphis-based global freight transportation and logistics services provider FedEx announced rate increases today for its FedEx Express, FedEx Freight, and FedEx Ground subsidiaries, which will take effect on January 1, 2024. The company also said that, effective September 4, it will officially rebrand “peak” surcharges to “demand” surcharges,

The van TVI was down 7.0% compared to June, to 226, and down 3.0% annually, the flatbed TVI decreased 12.8% compared to June, to 238, and was up 3.5% annually, and the reefer TVI was down 3.4% compared to June, to 169 and up 1.2% annually (DAT said that even with each TVI reading declining, the reefer and TVI numbers marked the highest on record for July.

Survey of transportation leaders finds most expect plenty of freight capacity.

The company said that it has added two Boeing 747-400Fs to its freighter fleet and is also expecting 15 more freighters to become part of its fleet from previously announced orders and its freighter conversion program, in addition to what it called a boost in belly-hold capacity from new passenger aircraft deliveries, kicking off with Airbus A350s in late summer 2024, which will be followed by 777-Xs in 2025.

The Federal Motor Carrier Safety Administration (FMCSA) is overstepping its authority by trying to push more transparency in trucking rates negotiated by freight brokers, a national group representing brokers says.