Truckload rates continued to climb last week (September 21-27), as load-to-truck ratios show that capacity remains tight on the spot market.
What is going on in the world around us?
First, a recap… once the market came back in June and we all returned to online ordering of everything imaginable, inventories were quickly depleted. The demand for the return of timely delivery of essential goods as Covid-19 restrictions were lifting began to take over all of the available trucking and rail capacity. By August and September, the industry was struggling with demand and facing shortages that were not expected or planned for. As published by FreightWaves September 5, volumes were at a three-year high with carriers rejecting one in four contracted load tenders.
What does this mean to KASS customers?
As we now enter the fall, the crunch is showing few signs of letting up, which unfortunately means that many freight rates will be higher than pre-Covid. This is due to the surge in volume, along with tight capacity increasing both OTR and intermodal spot rates. The bad news is that there doesn’t seem to be any sign that carriers will not continue their dominant position through year-end. Though some of these things are out of our control, what we can control is staying in close communication with you, our loyal customers. We will continue doing our best to maintain our relationships in order to get through this together. So until the storm passes, KASS has got you covered!