Welcome to the week of September 7th 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.
In this week's edition, we delve into the latest trends and developments in the trucking industry post-Labor Day, including the aftermath of Hurricane Idalia in Florida. Justin Maze calls out how the originally anticipated 8-10% increase did not occur due to the widely available capacity. While we did see a bit of a shift with the national RPM average and tender rejections, they were more aligned with trends from previous years.
National Average Rate Per Mile: The national rate per mile on linehaul increased just over 3%, reaching $1.61. While this is a notable uptick, it falls short of the 10% surge that was anticipated in connection with Hurricane Idalia and the Labor Day weekend.
Source: Freightwaves
Tender Rejections: Despite expectations of a significant increase, national tender rejections landed just north of 4.3%. This figure, though higher than recent trends, did not reach the predicted 4.5% in the wake of the hurricane and holiday weekend.
Source: Freightwaves
Discover the latest trends in key regions as we explore the dynamics across the nation:
Source: Transfix Internal Data
The South: The Southern markets continue to experience loose capacity, making it less desirable for carriers. However, higher pay is still attainable when entering this region. While Dallas, Texas has shown signs of tightening rates, most other Southern markets have been experiencing slow rate declines.
West Coast: Picking up freight from the West Coast is no longer akin to a gold rush. Markets like Ontario and Los Angeles have seen slim rate declines, and the region is expected to remain relatively flat throughout September. However, the Pacific Northwest remains favorable for carriers during the ongoing produce season.
Coastal and Southeast Regions: Florida and Georgia have been more volatile due to recent events, but rates are expected to decline as capacity stabilizes and larger carriers recover equipment. The hurricane's impact may result in declining rates in the Southeast and Coastal regions over the next week.
The Northeast: The Northeast continues to be a hot market for carriers, with greater rate increases observed in nearly every market. One notable callout is the particularly robust markets in New England, with substantial week-over-week rate increases.
The Midwest: Much like the Northeast, the Midwest is experiencing rate increases across the board, except for Ohio, which has seen a slowdown in the rate of increase. Illinois and Missouri are also witnessing upward trends, while Ohio and Indiana have stabilized. Notably, reefer rejections in the Midwest are over 17%, driving up costs for refrigerated freight. This trend is expected to intensify in the coming months.
Source: Freightwaves
As we move forward, the trucking industry remains adaptable and resilient, even in the face of uncertainty. While rates are expected to decline slowly over the next two weeks, we do not anticipate returning to the lows seen last month. Thanksgiving and the Christmas holiday seasons may bring additional volatility, but capacity appears well-equipped to handle these challenges.
National Truck Driver Appreciation Week in 2023 is on the horizon, and it's an opportunity for all of us to recognize the vital role that truck drivers play in our economy and daily lives. Transfix and many others are gearing up to show our appreciation to these unsung heroes who keep our nation moving.
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!
Drive safely!
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.