Freight Insights for Week of February 22
The following insights are taken from a weekly discussion between Sunset’s nine US/MX branches.
Trends and discussions range from seasonal manufacturing and agriculture trends that affect available capacity to general insight into outside factors affecting freight volumes.
Below is a summary of the February 24 call:
FREIGHT VOLUMES & CAPACITY
- February capacity availability has been extremely limited due to polar weather affecting a large majority of the U.S., specifically in the South where they are less prepared for inclement conditions.
- The polar vortex has caused a bump and backlog of ecommerce through early march, paired with textiles and construction materials coming out of hibernation by mid-March, followed by the traditional spring rate surge.
- Carrier rates are at an all-time high, and increases are expected through June.
- This combination is proving difficult.
- Spot markets are very aggressive right now.
- Port of L.A. has extreme congestion and delays, 15 days to even arrive into the ports with over 70 ships idling to be unloaded. Trucks are flocking to the coasts, away from the Midwest, thus reducing Sunset customer’s capacity in our target lanes.
- Texas relief efforts are also taking capacity.
- Fuel rates are spiking! Expect $3.15 by first week of March.
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