— ITS Logistics confirms trucking providers should focus on sustainable rates this season —
RENO, Nev., Oct. 19, 2023 (GLOBE NEWSWIRE) – ITS Logistics today released the October forecast for the ITS Logistics US Port/Rail Ramp Freight Index. This month, the index reveals port operations continue to run smoothly in all regions without any major interruptions. Trucking providers are also being urged to focus on sustainable rates this season.
“Terminal operations on the U.S. West Coast are the best they’ve been in years, and terminal operations throughout the U.S. are in great shape,” said Paul Brashier, Vice President of Drayage and Intermodal for ITS Logistics. “I don’t foresee shippers experiencing demurrage or ramp storage issues as there is enough trucking capacity to pull containers effectively. There has been increased reports of capacity and drivers exiting the market, and that is one focal point that shippers should be mindful of as they move forward in the month.”
According to a recent FreightWaves study, it is suggested that the trucking market has 78 weeks to go before capacity is back in balance with historical trends. As of September 2022, the market has churned an average of 435 fleets per week. The Bureau of Transportation Statistics confirmed that of the approximately 531,000 carriers, 99% operate 100 or fewer trucks. In addition, almost 97% of carriers have fewer than 10 trucks. While diesel prices continue to increase, more freight carriers are expected to exit the market, as numbers rose in September and remained close to near-record highs that were seen in the second quarter. AAA confirmed that the national average for diesel prices on Monday lingered at $4.456 but is still down from $5.271 just one year ago.
“As trucking rates continue to plummet, many trucking providers are operating at a loss to maintain revenue streams,” continued Brashier. “As fuel, insurance, and liability costs continue to rise in this low-rate environment, trucking capacity will exit at a rate higher than new capacity entering the market. Prior to exiting the market, financially struggling trucking capacity will sacrifice staff, safety, security of freight, and operational excellence. Obtaining cheap rates in this environment will be easy; the concern needs to be focused on how long those rates will be sustainable.”
ITS Logistics offers a full suite of network transportation solutions across North America and omnichannel distribution and fulfillment services to 95% of the U.S. population within two days. These services include drayage and intermodal in 22 coastal ports and 30 rail ramps, a full suite of asset and asset-lite transportation solutions, omnichannel distribution and fulfillment, and outbound small parcel.
The ITS Logistics US Port/Rail Ramp Freight Index forecasts port container and dray operations for the Pacific, Atlantic, and Gulf regions. Ocean and domestic container rail ramp operations are also highlighted in the index for both the West Inland and East Inland regions. Visit here for a full comprehensive copy of the index with expected forecasts for the US port and rail ramps.