Transfix Take: Weekly Market Update (May 15, 2024)

Transfix Take: Weekly Market Update (May 15, 2024)

The 72-Hour Blitz Is Underway


Welcome to the week of May 8th 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.

Industry Insights: Unpacking the Road Ahead

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:

Familiar Patterns from 2023’s Blitz Week: National freight trends are showing a familiar pattern to 2023, with the national average rate per mile line haul experiencing a five-cent increase since May 10th. This rise is largely driven by the West Coast and Southeast regions. Additionally, tender rejections, which began below 3% last week, have climbed to about 3.6%. This increase, though modest compared to the pandemic years, suggests potential volatility in the coming days. As we kick off DOT Blitz Week, we can anticipate further shifts, particularly influenced by regulatory inspections and enforcement across various markets.

Screenshot 2024-05-14 at 1.35.34 PM
Source: Freightwaves

Screenshot 2024-05-14 at 1.46.44 PM

Source: Freightwaves

Regional Roadmap: Where the Rubber Meets the Road

Below is a regional breakdown of the freight industry, uncovering nuances and trends in various regions across the nation.

Heat Map  (1)Source: Transfix Internal Data

Midwest: The Midwest has seen a general decline, with rates dipping nearly 1% over the past week. Despite this, higher-volume markets might see slim gains. However, recovery is expected to be quick, returning rates to current levels post-DOT Week.

Northeast: Philadelphia emerged as a standout with a 0.33% rate increase. Historically, rates on loads from the Northeast to the Midwest spike during DOT Week, but this year might not see as significant an impact.

Coastal Region: The Coastal Region continues to see gains, nearing a 1% increase in long haul and cross-country rates. The Southeast is particularly active, with Florida and Georgia driving increases that are expected to spread to the Carolinas, intensifying over the next 72 hours before stabilizing.

West Coast: Southern California, Arizona, and other high-volume markets are experiencing rate increases, contributing significantly to the national average rise. Meanwhile, the northern part of the West Coast, including Washington and Oregon, is seeing a loosening of rates.

South: Rates in the South saw minimal movement, with a slight 0.18% decrease. However, city and local runs experienced a 4% rate hike. Tightening is expected during DOT Week, but overall, the region typically remains stable through May and June unless influenced by rising imports from Mexico.

Southeast: This region is seeing a substantial impact from produce season, with over a 2% increase in the last week and nearly 5% over the past 60 days. The Southeast will continue to be a critical area, with tight capacity expected to persist, particularly in Florida and Georgia.

The Road Ahead: A $1.5 Million Liability Insurance Bill Goes into Effect for New Jersey

New Jersey's new liability insurance bill, effective July 1, mandates heavy-duty truck owners to carry a minimum of $1.5 million in liability insurance, significantly higher than the federal minimum of $750,000. Justin Maze highlights the potential complexities and broader industry impact, especially on small owner-operators and mid-sized carriers already facing increasing insurance costs. The specifics of how this will affect interstate operations remain unclear, but it marks a significant regulatory shift that could lead to higher operational costs and market adjustments, particularly for smaller players in the trucking industry.

Join us next week for an all new episode of the Transfix Take Podcast. Until then, drive safely.

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DISCLAIMER: All views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect the views or positions of Transfix, Inc., or any parent companies or affiliates or the companies with which the participants are affiliated and may have been previously disseminated by them. The views and opinions expressed in this podcast are based upon information considered reliable but neither Transfix Inc. nor its affiliates nor the companies with which the participants are affiliated warrant its completeness or accuracy, and it should not be relied upon. As such, all views and opinions are subject to change.