05 Nov From the Summit – Week of 11/5/2018
Summit Expedited’s newsletter featuring current market trends and other exciting news at Summit.
Markets Beginning to Turn
Over the last month, we have seen a steady decline in spot rates. This most recent drop may be the last we see this for a while. Last week brought tightened capacity, especially out of Southern California where we are seeing inflated outbound rates.
The chart above shows rejected Los Angeles tenders from contracted carriers since September. We can see a cool down in mid-October, meaning contract carriers were accepting most of the freight tendered to them. Suddenly, we have seen a large jump in rejected freight towards the end of October. This ultimately results in more freight in the spot market, less capacity, and higher prices. According to the Heat Map below, the Los Angeles area currently has over 9,000 available loads and only 750 trucks available in the spot market.
We have been anticipating a large spike in rates from Southern California leading into holiday season, and we are seeing it now. As we continue to approach the end of the year, we will see this trend spread across the country. One factor includes the Pacific Northwest and the demand for Christmas trees as we approach the holidays.
Additionally, we are starting to see snowstorms develop over the Rocky Mountains which will add to transit times and limit the amount of drivers willing to haul in those types of conditions. So plan ahead, give plenty of lead time when applicable, and provide flexible ship dates to ensure you are getting the most competitive rates possible. As always, SEL is here to help!
Continuing Concerns with UPS
As previously communicated by AIT, we are still awaiting to see the outcome of a potential strike by the Teamsters Union prior to the holiday season. They have previously rejected UPS’s first proposal, and will be voting on the second version by November 12th. As of now, AIT has suspended any future bookings with UPS until the issue has been resolved. We will continue to monitor the situation and will proactively update the network as information becomes available.
Throughout the year, Summit loves to celebrate holidays and other events by having community potlucks. Every teammate brings an item to contribute and the entire office is able to gather together and munch on goodies throughout the day! This Halloween, we had our first potluck in the new office. Everyone was encouraged to dress up in their favorite Halloween costumes for a Costume Contest that was held at noon.
The winner of the contest was Bri A, dressed as Violet from Willy Wonka and The Chocolate Factory (pictured left). Second place was Michael L, who dressed as his manager, Angela D (pictured right).