Liam Wheatley’s Post

Ocean container rates are on the rise, posing challenges for shippers. To mitigate the impact of the increase, efficient container management is crucial. By optimizing turnaround times and minimizing detention and demurrage fees, businesses can enhance cost-effectiveness. Descartes MacroPoint™, integrated to Dock Appointment Scheduling and Yard Management streamlines container flows, empowering our customers to navigate the current market dynamics effectively.

Southeastern dry van rejection rates hit 2-year high. Southeastern dry van regional rejection rates — the rate at which truckload carriers turn down loads from contracted shippers — have surged past all other regions this summer, hitting their highest level since July 2022. This breaks a trend of nearly two years of low volatility for the region. Last summer the Southeast peaked at a 3.52% rejection rate for dry van loads heading into the July Fourth holiday. The more telling thing is that rejection rates moved between a band of 2.5% and 3.5% throughout the year. This year, rejection rates have exceeded 3.5% since the start of March and have now topped 7.5% for the first time in 23 months. There still appears to be plenty of capacity available in the market, just not in the right places. This regional shortfall of capacity may be temporary, as we are approaching the seasonal peak of summer shipping around the Fourth of July, but it is just one more example showing the domestic truckload market is becoming increasingly vulnerable to disruptions. FreightWaves SONAR #trucking #logistics #supplychain

Without the Red Sea crisis supply and demand would have been severely out of balance in 2024, but with longer transit times around the Cape of Good Hope that will absorb much of the capacity increase. While everyone at TPM talked about the Red Sea crisis no one has a timeline on when it will be resolved. The interesting point in the market will be if the Red Sea crisis is resolved in late 2024 and that capacity becomes available plus how carriers manage the 1.5 Million TEU's of capacity coming online in 2025.

The monthly distribution of the traffic of a sample of major container ports, which includes gateways and transshipment hubs, reveals noticeable fluctuations. January and February are the periods of lowest activity (8.0 and 7.3% of annual traffic activity, respectively), while August to October experience the highest throughput. In addition to the complexity of anticipating future traffic, port capacity planning also faces fluctuations associated with seasonal processes such as consumption and manufacturing cycles. #containershipping #ports

Shippers typically turn to brokers when contracted asset carrier capacity is unavailable. But new research finds brokers outperform when it comes to volatile demand lanes and surge volume. Learn how to find the right balance for your freight portfolio ➡️ http://ms.spr.ly/6045iVCe1 #logistics #freighttransportation

The tides firmly turned for most of the carriers in Q4 last year. Outside of a small chance that January and its spike in spot rates and more importantly, a widespread implementation of PSS (peak season surcharges), lifted revenues out of the doldrums, Q1 of this year might lift more to (limited) profitability. As carriers hold on with almost white-knuckling fierceness to these unfittingly high spot rates, they likely see a very shaky future given where the early offered long-term rates are sitting. Drewry has predicted the carriers could lose as much as $15 billion in 2024. This was before the gift the move out of the Suez Canal brought them. Still, even with the small revenue generated with the lifting of spot rates and surcharges, it will be a long uphill battle for profitability this year. #carriers #oceanshipping #oceanfreight #spotrates #revenue #profitability #containershipping #fixedrates #contracts

As we all know, the market for Full Truckload freight is always changing and a little insight can go along way! See a copy of the current dry van market for capacity. Tight = High commodity/freight volume with limited carrier capacity so rates will increase. Loose = Lower to Mid commodity/Freight Volume with high capacity so rates will decrease! If you are not challenging your carriers to adjust rates based on these markets, you are putting yourself at risk of over-paying for certain lanes! This is where I like to strive to shine to provide the best rates available to the current markets.

In the logistics industry, tender acceptance rates are currently holding steady, with no significant changes on the horizon. This status quo might seem uneventful, but in our world, it speaks volumes. When tender acceptance is flat, it typically indicates a stable level of capacity in the market. And why does that matter? Because when tender acceptance is low, it often signals a scarcity of available trucks, causing spot rates to skyrocket. So, while it may seem quiet on the surface, those of us in the industry know that even the slightest shifts can have big implications. Stay tuned as we continue to monitor the pulse of the logistics world and keep you updated on any developments. #LogisticsInsights #TenderAcceptance #MarketTrends #SpotRates #StayInformed

As storage yards in the Mediterranean near their container storage capacity, experts watch out for the ripple effects of delays along shipping routes, especially in the Red Sea, which has been a global choke point over the last decade and half. Could we see a resurgence in warehousing demand in the United States, as businesses build up inventory to minimize volatility?

Happy Friday and last day of the month everyone! It's hard to believe tomorrow is already June and we're approaching the mid-way point of 2024. I've been pretty quiet on here recently, but the market has been anything but. We are seeing a culmination of many things such as the Red Sea re-routing of vessels, the Baltimore bridge collapse, bad weather in Asia, etc. cause an extreme strain on both rates and capacity out of Asia. Additional capacity was added to the market in March and April to cover a lot of this up, but now that extra capacity is no longer a luxury and vessel schedules being off is making a heavy impact causing blank sailings resulting in equipment shortages and rolled bookings. The article below says 19% on the eastbound transpacific trade lane have made peak season shipments early which is further magnifying the issues, but it also means there is still a large portion of traditional peak season left to ship. If you're struggling to get space or need guidance during this difficult time, please reach out. There are many solutions we can explore, but it all depends on what your priorities are. [email protected]