Month: September 2021

Truckload volume surged and spot and contract freight rates hit new highs in August as logistics managers stared down their most challenging peak shipping season yet.

Shippers and logistics managers who would normally be gearing up for peak shipping season have encountered one test after another in terms of their ability to manage transportation pricing, capacity and supply chain disruptions.

The DAT Truckload Volume Index (TVI) rose to 231 last month, up 2% from July and 17% higher year over year. The Index is an aggregated measure of dry van, refrigerated (“reefer”) and flatbed loads moved by truckload carriers and an industry standard indicator of commercial freight activity.

The DAT Truckload Volume Index reflects the change in the number of loads with a pickup date during that month; the actual index number is normalized each month to accommodate any new data sources without distortion.

The August reading for the TVI  is one of the five highest months on record. July came in at 222, which was preceded by June’s 237 (the all-time record), and May’s 212.

Growth + Change = Opportunity!

The vast network of ports, container vessels and trucking companies that move goods around the world is badly tangled, and the cost of shipping is skyrocketing. 

With the holiday season on the horizon retailers will face shortages and consumers should expect higher prices.

The COVID-19 pandemic has prompted a long-lasting rise in transportation costs, leaving many businesses already facing high wages and raw material prices. Some CEOs are saying they expect freight costs to rise by 2023.

The cost of transporting goods is a component at every stage of a company’s supply chain. Everything from iron ore, steel, parts and finished products has to move as raw materials are processed into global manufacturing. Shipping containers across the ocean cost more, truckers are in short supply, and gasoline is more expensive than expected earlier this year.

Logistics networks have been running at maximum capacity for months, thanks to stimulus-fueled demand led by US consumers and a pickup in manufacturing.

After a decade of consolidation among ocean shipping lines, a handful of companies dominate the major routes. This means there are generally smaller and fewer ships between ports, forcing cargo owners to pay a premium to find space. 

Shipping companies expect the global crunch to continue. That’s massively increasing the cost of moving cargo and could add to the upward pressure on consumer prices.

Growth + Change = Opportunity!

Containerized shipping has become a problem of the chaotic supply chain facing U.S importers and Chinese exporters. Hopes are quickly fading that trans-pacific supply chains will normalize this year or even in 2022.

Congestion contributes to the global shortage of shipping containers and the exponential cost of sea freight. 

The number of ships is increasing. The port has already been overwhelmed by the record number of containers arriving on the U.S. coast during the peak season of this year’s shipments, waiting for a birth space at a gateway in Southern California as log jams spread across nationwide warehouses and distribution networks. 

Port leaders who have spoken to shipping companies and their freight customers say the volume of containers is declining.

Ports have emerged as one of the many bottlenecks in the world’s supply chain as ships fill boxes carrying electronics, furniture, holiday decorations and other commodities.

Hundreds of thousands of containers are loaded onto container ships waiting to berth or from terminals waiting to be transported by truck or rail to inland terminals, warehouses and distribution centers. 

The log jam causes the Biden administration to appoint a port envoy last month to work on ways to improve cargo movements in response to complaints from U.S. companies facing inventory shortages, shipping delays and rising costs.

Growth + Change = Opportunity!

If you want more money, flexibility, back-office support and freedom to thrive, and are ambitious with a hard-working approach, becoming an independent freight agent could be the best move you ever make. Whether you’re a longtime veteran of the freight industry or a potential newcomer there are several reasons you should become a part of the freight broker business:

1. Independance: Independent agents have more control of business decisions than many others in the industry. At the same time, agents receive deep, comprehensive support from their brokers.

2. Unlimited Earning Potential: Because your income is determined based on your production, you will have the ability to make as much money as you want, as long as you’re willing to work for it.

3. Flexible Scheduling: As an independent freight agent you are free to work however and whenever you please. Independent agents do not need to request time off or call in sick to their boss.

4. Low Start-Up Costs: You can avoid these outstanding costs by working with an already established freight broker. You represent their company but operate with your own customers and work for yourself, through their business.

5. Work from Home: All you need is your PC or laptop to access all of the load boards and a cell phone to handle call-ins on your shipment. Making money while you’re in your pajamas is not a bad gig! It provides flexibility in case you ever want to move elsewhere, because you’re not tied down to a specific work location.

6. Work-Life Balance: As an independent freight agent, you are free to take vacations, get married, have kids, and take sick days whenever you please

7. Security For Your  Family: An agency is an extremely valuable gift that can be extended or passed down to family.It is a chance to position not just yourself, but your family in a place where they can be successful.

8. Be Your Own  Boss: It gives you a clear mind and reduced stress environment, so you can produce your best work without any distractions. The only person you answer to is yourself.

Growth + Change = Opportunity!