Continued acceleration of the domestic freight market has been a common topic in our CLIFF NOTES weekly e-newsletter and the outlook for the freight industry shows no sign of slowing.
Over-the-road shipments including LTL (Less-than-Truckload), TL (Truckload) and drayage moves (to and from intermodal railheads) are a few of the most common modes being impacted by the strong domestic freight market. These tight market conditions have pushed per-mile transportation costs upwards and increased the assessment of demurrage, detention and other storage charges for shippers.
What is causing the strong freight market?
There are numerous factors that are causing rising transportation costs which include, but are not limited to, the ELD (Electronic Logging Device) regulation, severe winter weather and lingering impacts from the 2017 Hurricane season, driver and equipment shortages, general imbalance of load-to-truck ratios as well as strong national and global economies.
What are some of the hardest hit areas?
Tough market conditions are occurring nationwide. However, some of the most substantial impacts are happening near major domestic and international freight hubs. For example, inland intermodal hubs of Chicago, Houston and Memphis as well as key import gateways like Los Angeles-Long Beach, New York-New Jersey and Savannah, are seeing the largest disruptions.
What can shippers do to minimize delays and cost increases?
Partnering with a logistics team can help shippers anticipate issues and additional charges in order to think outside of the box to build the best possible solution based on the shipment requirements and unique market challenges. Partnering with a strong logistics company can also extend a shipper's connections to additional drayage and carrier networks to ease the capacity challenge.
Demurrage and storage charges are sometimes unavoidable in a tight market. However, partnering with a logistics team that is committed to open communication and superior service will help shippers stay informed of changes, minimize container and chassis dwell times, proactively work with vessel operators to expedite container release at seaports and also develop potential alternatives to limit the impact to a shipper's business.
How can the Ascent Global Logistics team help?
Our team of domestic and international logistics experts are just a phone call or email away and are available to help you through this tough transportation market. Contact our team by clicking here or reach out to your local Ascent Global Logistics representative directly.
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