Freight volume to stay high as fleets face unprecedented supply chain, labor challenges

From Commercial Carrier Journal.

The trucking industry in mid-2021 faces unprecedented demand from consumers and shippers, a driver shortage that looks like it could get worse, and the persistent challenges of a mutating COVID pandemic that continues to create problems across the supply chain.

But, despite the tremendous headwinds and unpredictable challenges, the trucking sector has continued chugging along as it always does, according to data from FTR Intelligence CEO Eric Starks.

Starks presented at CCJ’s annual Symposium at the Ross Bridge resort in Hoover, Alabama, last week, and shared the following insights on the economic outlook for the trucking industry.

Total load volume slipped slightly during the week ending August 6 as modest drops in dry van and flatbed were partially offset by a small uptick in refrigerated load postings. Spot volume trends are essentially performing in line with seasonal expectations, but they continue to remain at highly elevated levels, according FTR and Truckstop.com data.

The current performance is better than some of the results seen during the second half of 2018 – the last time that the market was running at extremely elevated levels. As the charts above show, both volume and rates now stand at least one-third higher than in 2020 and nearly double the five year average, underscoring how hot the freight market is currently.

Continued disruptions stemming from materials shortages, production volatility, port congestion, and chronic problems with rail service, which is hurting the competitive intermodal segment, boosted volumes and rates FTR said of the first week in August. Meanwhile, purchasing due to robust job growth, strong consumer finances, and additional stimulus in the form of advance payment of child tax credits is keeping a floor on volume and rates, Starks said.

See the complete article online at Commercial Carrier Journal.