Report highlights firmer freight outlook driven by a less negative industrial production forecast and strong quarter over quarter growth.
DALLAS — Transplace, the premier provider of logistics technology and services, has released its Logistics Market Quarterly Update, Third Quarter 2020. The report highlights a firmer freight outlook for 2020, driven by a less negative industrial production forecast and strong quarter over quarter growth expected in the third quarter.
The expansive data and industry insights are derived from Transplace’s more than $11 billion in freight-under-management in the United States, Canada and Mexico, along with supply chain trends from Europe.
Key findings from the Third Quarter 2020 Logistics Market Update include:
U.S. – Full Truckload
- Spot pressures on flat volumes pre-COVID levels
- Contract rate pressure on hold
- Route guide performance dropping
- Inflationary pressures increase out of 2020Q2
- U.S. – Less than Truckload
- Volumes increasing in June and continue to improve in July
- Q2 labor down ~14%, furloughs ending in higher volumes
- O/R’s flat due to lower Q2 volumes
- Safety procedures impacting service performance
U.S. – Intermodal
- Significant So Cal 53’ container constraints
- Abundant dray capacity continues
- Rails ramping up operations to address congestion
- Imports driving volumes
U.S. – Bulk
- July spike in demand after slow June
- Rates are holding – increases in tender acceptance
- Declining broker usage
- Stable rates on new business
- Expecting flat to moderate (0-3%) rate increased 2020H2
Mexico – Truckload
- Significant north-south imbalances driven by scant imports
- Rebalancing and congestion create new cost challenges
- DCs saturated in the north, with significant dwell issues
- Load to truck ratios out of Laredo pegged at over 100 per truck according to sources
- No immediate impact of USMCA which went in force on July 1
Canada – Truckload/LTL
- Reports of more balanced equilibrium with slight pricing favorability to the shippers
- Capacity is strong due to softer demand
- Drivers now willing to drive to Southern regions of U.S.
- Facility turn-around times have returned to normal
- Re-implementation of service penalties in some sectors
- Safety protocols have become standard practice
International – Ocean
- Blank sailings at lower frequencies
- June imports down across all major ports YoY
- Asia to U.S. Spot rates show significant acceleration in June
International – Air
- Global volumes down 20% YOY June, but better than May
- PPE still driving volumes
- Air cargo operations grew 21% in 2020H1 due to scarcity of aircraft
The Logistics Market Quarterly Update includes vital KPIs from the Transplace Transportation Management System and the Transplace Control Tower. Other KPIs include international ocean logistics and the company’s proprietary analytics, freight capacity, and benchmarking statistics.
Supply chain and transportation specialists can use the report to access Transplace data scientist forecasts, optimize their supply chain operations, and better prepare for the all-important fourth quarter.
Connect with a Transplace expert to receive the full report of the Third Quarter 2020 Logistics Market Quarterly Update and sign up to receive future reports. Learn more about the benefits of Transplace’s Transportation Management Services by visiting transplace.com/contact/connect-with-an-expert/.
Transplace is a technology and services company that hosts a proprietary logistics platform and provides engineering and execution services for global shippers. The platform and service offering deliver process automation, network optimization, and transparency driving an improved service and cost position. Transplace also provides value-added services through our strategic capacity services business (truck brokerage and intermodal) and our border management business, which includes customs brokerage and logistics services on the Mexican border. With over 1,000 customers and $11 billion of Freight Under Management (FUM) in North America alone, and a growing client base in Europe, Transplace continues to deliver the intelligent solutions that grow and differentiate the supply chains of its customers.
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Grace Platon | +1 214.901.4744