Welcome to the week of April 10th edition of the Transfix Take! Gear up for the latest updates and trends in the trucking industry. In this issue, we're revving up with industry news, sprinting through regional breakdown highlights, and putting the spotlight on what's on the logistics horizon.
In this week's edition of Transfix Take, we bring you the latest updates and insights from the world of freight. Co-hosts Justin Maze and Jenni Ruiz share the following highlights and updates:
A Southern Storm to Keep an Eye On: This week, severe thunderstorms are impacting parts of the South, particularly the northern regions of Texas and western Tennessee, potentially leading to tornadoes, destructive winds, and large hail. The top five worst weather lanes, powered by WeatherOptics, include Dallas to Memphis, Dallas to Atlanta, San Francisco to Salt Lake City, Dallas to Laredo, and Seattle to Sacramento. These weather disruptions are likely to cause delays for drivers in affected areas.
The National Average and Tender Rejections Update: Despite the storm's impact, national average rates per mile have seen a decline, with spot market rates dropping from $1.65 to $1.62 per mile. Tender rejections remain relatively flat but show a slight decrease. However, regional variations exist, with the Southeast and South currently experiencing less pressure, favoring shippers. Looking ahead, important events to monitor include the upcoming DOT Blitz week and the onset of produce season in May.
Source: Freightwaves
Source: Transfix Internal Data
Below is a regional breakdown of the freight industry, uncovering nuances and trends in various regions across the nation.
Midwest: Continued softening in the market, with specific lanes back to the West Coast becoming more desirable for carriers, leading to increased competition and lower rates.
Northeast: All markets in the Northeast show a decrease, with ongoing declines expected, particularly for freight headed down the I-95 corridor to coastal and southeast regions.
Coastal Region: Rates in the coastal region continue to decrease, reflecting the broader trend in April, with further declines anticipated over the next few weeks.
West Coast: The West Coast is experiencing some upward momentum, especially in regions like Pendleton, Oregon, with gains of 0.24%. This trend is expected to continue, particularly in May, benefiting carriers in the region.
Southeast: While some tightening is observed in markets like Chattanooga, Jackson, and Memphis, overall, the Southeast remains relatively stagnant, with significant changes not expected until the end of April or early May, coinciding with the onset of produce season.
South: Limited gains are seen in regions like Lubbock, Oklahoma City, and Shreveport, but the market overall is expected to remain stagnant, with potential disruptions due to ongoing severe weather conditions.
In terms of net new carrier revocations, while there's been a slight slowing of exits in the industry, it's not yet a significant trend. In Q1, the industry lost under 2% of carriers, compared to over 6% in the same period last year. Despite this, there's still over 40% more capacity than in 2019 before the pandemic. As we approach DOT week and the upcoming July 4th holiday, attention will be on whether carriers can maintain momentum upward in rates, especially with the anticipation of produce season and seasonal changes.
Join us next week for an all-new episode of the Transfix Take Podcast. Until then, drive safely.
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