Weathering the Storm(s): Hurricane Season in Full Swing
Welcome to the week of August 23rd 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 horizon for truckers.
Hurricane Update: Navigating the Storms
The freight industry faces a formidable challenge with after effects from Hurricane Hillary in the West Coast and Tropical Storm Harold gathering strength in Texas. Our expert, Justin Maze, provides a detailed examination of the impact of these weather events on the industry.
Maze delves into how Hurricane Hillary, and now Tropical Storm Harold, have created minor disruptions for freight operations along the West Coast. He explains how the West Coast, especially California, quickly resolved weather disturbances, resulting in some road closures with potential impacts on full truckload capacity. Maze also highlights the resiliency of carriers in the face of adversity and discusses potential delayed impacts that may ripple through the industry.
There’s also news on the intermodal side of things, shedding light on Union Pacific's reported network outages and the potential implications on full truckload volume. Despite these challenges, Maze remains cautiously optimistic, projecting that the full truckload market may experience minimal disruptions.
Regional Roadmap: Where the Rubber Meets the Road
Discover the latest trends in key regions as we explore the dynamics across the nation:
Source: Transfix Internal Data
Southern Region: This region has seen decreases in rates, with capacity mismatches affecting Dallas-Fort Worth and Houston.
Southeast Region: Carriers are moving out of the southern part of the country in search of higher rates, leading to slight decreases in most markets. Tennessee, however, is experiencing capacity tightness.
Northeast Region: Markets like Allentown, Pennsylvania, and Elizabeth, New Jersey, are witnessing rate increases alongside higher tender rejections, indicating strong demand. The region is seeing the ripple effects of tightening markets.
Midwest Region: Ohio emerges as a standout with significant rate increases, while other markets like Chicago and St. Louis experience upward pressure. The Midwest follows the tightening trend observed in the Northeast.
Coastal Region: Rates continue to decrease, particularly heading into the Northeast and Midwest. However, freight heading south still commands higher rates.
West Coast: The Pacific Northwest remains strong due to produce season shifts, but Hurricane Hillary causes some localized disruptions in California. Expect freight rates to increase in response especially as we drive toward the long holiday weekend.
On the Horizon: What Lies Ahead in the Trucking Terrain
As the Labor Day weekend approaches, we could see tender rejections at a national level head north of 4.5% around or post-holiday. There could also be a national average increase to around 5%, similar to what the industry experienced on the 4th of July holiday and Memorial Day weekend holiday. Make sure to listen to this episode of the Transfix Take podcast to hear more.
That's the wrap for this edition of the Transfix Take Newsletter. We'll continue to keep you in the driver's seat with the latest news, trends, and insights in the supply chain. Until the next pit stop, drive safe and stay ahead of the curve!
DISCLAIMER: The views and opinions expressed in this newsletter are based upon information considered reliable, but Transfix, Inc. does not warrant its completeness or accuracy, and it should not be relied upon. All views and opinions are subject to change and should not be interpreted as specific advice of any nature. Any reproduction or distribution of the content of this newsletter is prohibited without the explicit written consent of Transfix, Inc.