Business & Investment

Report: Rough roads in the truck loading market remain

Third-party logistics services (3PL) provider Coyote’s third-quarter market forecast shows that the truck loading market is nearing its peak, but the supply chain remains volatile in the coming months. Expected to remain high. Released this week.

The company’s Coyote Curve Index is a US quarterly Truck / Less Truck Load (LTL) market forecast that combines its own trading data with market insights. The outlook for the third quarter predicts a difficult market environment and high costs as companies struggle to keep up with the booming economy after Covid-19. Studies show that both contract and spot market rates are heading towards record highs and are expected to stay there. “In the third quarter, we could be at or near the peak of the cycle, but we’re not entering a new world with low spot truck loading and ample capacity,” researchers said this week. I am writing in the report. “Contract rates are also heading towards record highs. Spot market activity is expected to continue to rise as spot market activity is the number one driver of higher contract rates.” Third. The quarterly outlook lists six factors in the “chaotic” situation that occurs in the market.

  1. Year-on-year comparison. The surge in activity from last year’s panic buying and the subsequent decline mean that this year’s improvement looks more extreme.
  2. Economic revival. Strong consumer activity is driving recovery, but supply chains are struggling to catch up after a year of demand start and stop.
  3. Blockage of the Suez Canal. The blockage delayed more than 200 vessels passing through this important corridor, creating a spillover effect on thousands of international cargoes.
  4. Los Angeles harbor congestion. Extreme congestion in LA and elsewhere continues to delay companies waiting for product delivery, reducing manufacturing and shipping capacity and creating a domino effect on transportation.
  5. DOT Week. The International Democrat Union Road Check (also known as DOT Week) is an annual event that causes short-term capacity shortages. This year’s international road check was from May 4th to 6th.
  6. Agricultural season. Seasonal agricultural cargo heats up in early spring, starting in southern Florida and Texas in March and April, causing capacity shortages in the region extending north throughout the summer.

For more information Coyote Curve website.

Report: Rough roads in the truck loading market remain Report: Rough roads in the truck loading market remain

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