Transplace’s Fourth Quarter 2020 Logistics Market Update Offers Exclusive Data to Address Uncertainty

Posted - November 20, 2020

Transplace’s Fourth Quarter 2020 Logistics Market Update includes insights from our industry-leading Transportation Management System and exclusive data derived from our more than $11 billion in freight-under-management.

Contingencies for Uncertainty
With uncertainty expected this quarter and beyond, Transplace’s analysts and logistics management experts offer guidance and resources to prepare for what’s ahead.

Key report findings were discussed in further detail during our Quarterly Market Update webinar, including:

Key Factors Impacting Supply and Demand

  • Demand remains strong with continued CPG surge, retail shelf restocking, automotive restart and strong housing market.
  • Drivers continue to be the critical issue with 34,000 drivers in the FMCSA drug clearinghouse and 78% have not started return to duty process.
  • Carriers are focused on velocity. Asset-based carriers are becoming more selective on lanes to bid, where to support and how to grow their network.
  • While rates and costs are top of mind, sourcing and capturing capacity is the first priority in many industries.

Throw out the Traditional Playbook in 2020!

  • Shippers are advised to actively manage routing guides.
  • Stay flexible and capture opportunities with mini-bids, mode sourcing and intelligent spot market sourcing.
  • Keep capacity in your network by using data to make decisions on carrier performance.
  • Leverage technology to support forecasting and smooth demand.
  • Evaluate alternate mode selections, including dedicated fleets, intermodal and other collaborative solutions.

Insights and Recommendations by Mode

U.S. – Full Truckload

  • Frequent detailed route guide performance assessments
  • Continuously monitor key KPI’s

U.S. – Less-Than-Truckload

  • A number of LTL carriers continue to expand and grow their final mile services
  • O/R’s improvements across many major providers

U.S. – Intermodal

  • With over the road driver shortage, long-term intermodal capacity is a reliable option
  • Consider providers that have the ability to operate on all of the railroads for flexibility to shift volume in case of congestion and service issues

U.S. – Bulk

  • Bulk tank truck conditions are expected to remain fairly strong for the remainder of the year
  • Expecting flat to moderate (0-2%) rate increase in 2020 Q4

Mexico – Truckload

  • Continued North-South imbalances
  • Truck repositioning and paid empty miles are key tactics

Canada – Truckload / LTL

  • Stable capacity environment in historical peak season
  • Bids yielding cost savings

International – Air

  • Global load factors rose to 71% week of September 28, up 2% from August and 8% from September 2019
  • Global air cargo capacity in September was 25% lower YoY in 2019

International – Ocean

  • U.S. imports increased 15% YoY in September
  • Transpacific carriers increasing capacity to 26% USWC and 31% USEC

Network velocity and collaborations present the greatest opportunities to address extreme uncertainties. Request a demo of the Transplace TMS and learn more about the ways we can support you with:

  • Forecasting
  • Order Smoothing
  • Planned Continuous Moves
  • Dynamic Continuous Moves
  • Partial Load Matching
  • LTL Pools
  • Collaborative Fleets
  • Fleet Backhauls

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