LTL and Truckload Fuel Rates are the highest since 2014... Adding Strain to Holiday Shipping
LTL and TL Update:
Diesel fuel has risen by 4.2 cents a gallon for a total rise of 30.7 cents over the past four weeks. A gallon of diesel now costs $1.328 more per gallon than it did this time in 2020.
LTL carrier embargoes are continuing to ease while carriers focus on pushing away extreme length freight over 8 feet. Carriers are coming for double- or triple-digit percentage increases, with some being a second-round increase within 6 months. Charges over $1000 for greater than 8 feet are being seen from multiple carriers.
The trucking industry is short 80,000 drivers and, without significant changes in the economy or legislation, that number may double by 2030 according to the American Trucking Associations (ATA).
Driver recruitment and retention costs continue to climb in relation to the shortage, which often are passed through to shippers via rate increases.
Holiday Shipping Strains May Be Easing, But…
Heading into holiday season, although capacity strains are easing in some areas, increased challenges will likely be seen at ports and in lanes including Atlanta, Chicago, Cincinnati, Dallas, Los Angeles, and Salt Lake City.
Multiple LTL carriers are tentatively lifting embargos just in time for the holiday season, but with some limitations to volume to certain destinations.
Capacity strains are easing in some areas, but continue in lanes including Atlanta, Chicago, Cincinnati, Dallas, Los Angeles, and Salt Lake City.
Check out our video for Tips on how to deal with Peak Shipping constraints: