We all know what has been going on in the logistics field. Carrier’s are feeling the crunch as way too many carriers enter the spot market as the COVID-19 pandemic forces non-essential businesses to close. Load volumes, rates and even fuel costs continue their downward slide, prompting many drivers to consider heading home to wait it out.
Quote of the week
“Failure Will Never Overtake Me If My Determination To Succeed Is Strong Enough.” – Og Mandino
Carriers and Brokers
According to Carrier411, aspiring carriers and brokers are starting to listen to the market crunch as new applications are down for the first week in quite a while. In the past seven-days, 167 applications were filed for new brokerage authorities, down 19.8 percent from last week. Applications for carriers are down 14.6 percent to a total of 1,515 new property motor-carriers.
Diesel National Average
Diesel prices fell again this week to $2.50 per-gallon for a national average, with a $.04 drop from last week. Highest prices are still the West Coast average at $3.02.
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Rates and Trendlines
According to DAT Solutions, the oldest and most trusted load board and freight analytics software provider out there, Van spot freight volumes lost 20% in the past two weeks, and national average rates lost 8¢ per mile, to $1.78, reflecting declines all over the country. Reefer trends weren’t much better, and the flatbed sector has been slow for months. Then tornadoes swept through the South and high winds continued up the East Coast, wreaking havoc along the way. It was not the best week, to be sure.
The pandemic is continuing to disrupt virtually everything, everywhere. Toilet paper is still a hot commodity, that we can’t seem to locate here in South Florida. As of this writing there have been nearly 600k confirmed cases and 22k COVID-19 deaths in the United States. Nearly every US State is under some form of lock-down or safer-at-home order and over 16 million people have filed unemployment claims in the past three weeks. The nation’s largest meat processing plant closed down indefinately causing its CEO to sound the alarm about a possible meat shortage in the US. Brokers and shippers are all trimming staff in attempts to stay operational as the pandemic continues on. No one really knows when this will end, but we all know it eventually will and we will come back stronger than ever.