This is a weekly series that brings the insights we use to get your shipments from A to B from our carrier sales floor to your home office.
This week Loadsmart’s Carrier Sales Manager, Jimmy Fahey, breaks down what happened last week and what to expect this week in the freight market in less than 60 seconds.
What We Saw Last Week
- Bullish container news continued to pour in over last week, as equipment lessor Triton International reported Q3 2020 results and described Q4 2020 demand for equipment as exceptionally strong. Market conditions are expected to remain strong at least thru early next year. Chinese factory capacity is booked thru 2020 and market conditions are expected to remain tight thru Chinese New Year.
- A powerful snowstorm has been moving thru several states since Wednesday and intensified over the weekend. Roads stretching from California to Colorado, Montana and the Dakotas will be dangerous for drivers. Blizzard-like conditions will be heading through parts of Montana with wind gusts reaching 35-40mph and snowfalls anywhere from 2-14 inches depending on the elevation. Snowfall in the Sierra Nevada region will also affect drivers along I-80 and Highway 50 in the area. Outbound tenders have increased in some markets along the storm’s path and it is possible that many drivers will shift to other markets over the coming days to avoid the storms.
- The US economy added 638,000 jobs in Oct., pushing the unemployment rate a full percentage point lower, to 6.9%, even as a resurgent virus threatened to slow future hiring. The rate, less than half of April’s level, is still almost twice as high as before the pandemic struck in March. Further clouding prospects is the expiration of extra unemployment benefits with no added federal stimulus yet in view.
- Long-term joblessness jumped, with the number of Americans unemployed for 27 weeks or more rising 1.2mil to 3.6mil.
What To Expect This Week
- Hurricanes and tropical storms continue to pound the Gulf Coast and we are yet again tracking a storm. Tropical storm Eta, the 28th named storm of 2020, has been tracking through the Caribbean over the last week and intensified again over the weekend. The storm is expected to bring 15 to 20in of rain to parts of South Florida the this week. With the ground already saturated in South Florida, we are looking at potential flooding in the area
- Reefer demand continues to climb to the highest levels seen, with demand at 2556.72 index points and national rejections sitting at 47.64%
- Van and reefer rejection rates continue to climb as we enter the holiday shipping season. Nationally, van reject rates have climbed above 27% and reefer rejects are above 45%. Shippers should prepare for market conditions to tighten across the nation, which could push carrier spot rates to the highest rates seen all year as we approach the Christmas holiday.
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