12 Jul From the Summit – Week of 7/8/19
Summit Expedited’s newsletter featuring current market trends and other exciting news at Summit.
Rates are still rising as we move further into summer. Dry vans continue to see an incline moving up another three cents since last month, and reefers have followed a similar trend jumping two cents. Surprisingly we have seen flatbed rates remain somewhat steady in the warmer months, when we typically see rates increase due to construction materials being transported throughout the county.
It appears that a large majority of the Western U.S. and Great Lakes region have continued to remain slow for flatbed loads. Most of the freight being moved is all coming out of the southern or southeast part of the country. With that said our current Load-to-Truck ratio for flatbeds is 20.12, a whopping 59.45 point difference compared to last year which helps explain the maintained rates. Since it has been so steady in a time we usually see a jump, there may be a delayed spike in rates that we should be prepared for if shipping volumes pickup.
LTL Marketing Shrinking
Earlier this year we learned the news that one of the leading LTL transportation providers, New England Motor Freight, was shutting its doors. With them leaving the market NEMF took with it over 1300 drivers and 1400 power units.
Today we learned that LME, a regional LTL carrier based in Minnesota, also closed its doors suddenly. The carrier employed over 600 people, had almost 400 trucks, and over 1200 trailers.
LTL rates have steadily been increasing and the cutting of available capacity will not be helping the industry become any more competitive. As rates increase, LTL providers are explaining operating costs are the driving force behind those rate hikes.
With these sudden changes we will be monitoring the LTL industry closely and continue to provide updates of any other changes.
Weekend Tracking Team
Here at Summit we pride ourselves on our round the clock service and being able to assist customers with any calls, questions, or concerns that they may have, even on the weekend! In order to ensure the best quality service from start to finish several team members are working to procure live updates throughout each day, please meet our weekend tracking and operations team!
Pictured from Left to Right: Carlos Medina (Tracking and Operations), Christian Vergara (Tracking and Operations), Daniel Villa (Tracking and Operations), Bri Andrade (Customer Service Representative), Kamil Krawiec (Carrier Sales Representative)