Sunset in the News: Hurricanes spur spike in freight rates for St. Louis firms
While extensive parts of the U.S. have experienced severe hurricane and wildfire disruptions in recent weeks, a predictable upturn in freight rates has resulted from closures, delays, and capacity redirected toward hurricane relief efforts. The St. Louis Business Journal reached out to Sunset Transportation during the week of October 2 to get our insight on the market conditions, specifically how we’re approaching this spike in rates and its effects during the upcoming holiday season.
“Carrier Relations Manager Mike Fritz of Sunset Transportation, a third-party logistics provider in south St. Louis County with $91 million in annual revenue, said he’s seen rates upwards of three times what they were this time last year.
Yet Mick Noce, executive vice president of Town and Country logistics provider Sheer Logistics, says the rates haven’t risen as much for other regions of the country and are comparable to past disasters. Maintaining good relationships with carriers and good visibility can help to mitigate some of the price gouging, he said.
Retailers thought have started shipping for the upcoming holiday shopping season, making a tight situation tighter, Fritz said.” –STLBJ
Sunset believes the full impact ELDs on capacity won’t be known for some time. Given the uncertainty, we anticipate costs will increase as productivity of drivers goes down, while some smaller carriers will be forced to cease operations completely. Capacity will continue to be strained for the foreseeable future.
Related:
Hurricanes spur spike in freight rates for St. Louis firms, St. Louis Business Journal
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