Adam Smith’s Post

Larger full truck carriers continue to feel the burn as shippers press on holding their feet to the fire. In a time where supply exceeds demand, you can’t blame them for taking advantage of a better rate environment in the spot market vs. locking in capacity via contracts. All Shippers are facing the same inflationary pressures forcing them to either reduce margins or forgo sales orders. As reported by the JOC, two large full truck providers, Knight-Swift and JB Hunt, have seen contractual volumes slip as shippers are not willing to commit. As we mentioned in our prior posts, changes to the spot market will be driven by one of two things: either an increase in shipment counts or an accelerated pace of carrier exits.  #PeopleDriveLogsitics #3pl #3pls #3pllogistics #3plsolutions #transportation #transportationindustry #transportationmanagement #tld #tl #owneroperator #independent #independentcontractors #capacity #trucking #truckingindustry #truckload #benchmarking #logistics #logisticssolutions #logisticsmanagement 

Numerous LTL carriers are going on offense to add real estate to their network in preparation for an expanding LTL market. We are seeing carriers take several approaches to add real estate to their network. - Carriers are buying land to build new service centers - Carriers are purchasing existing terminals from Yellow Corporation - Carriers are taking over terminals they previously leased to other carriers Through real estate expansion, the carriers are adding dock doors and space to add capacity to their networks. Now more than ever, we are seeing our carrier partners expand into areas less traveled such as Montana, Wyoming, and West Virginia. They are also adding additional service centers to more congested markets where their presence is already well known.

Real estate, not driver shortages is the #1 focus for #LTL carriers. This JOC article shows carriers spending 30% premiums to gain a presence in areas where they couldn't before. For carriers that acquired them, the Yellow terminals are opening those doors. All this additional capacity indicates carriers are planning for an expanding LTL market. #PeopleDriveLogistics #3pl #3pls #3pllogistics #3plsolutions #transportation #transportationindustry #transportationmanagement #ltl #ltlfreight #ltlshipping #capacity #thirdpartylogistics #thirdparty #freight #lessthantruckload #benchmarking #logistics #logisticssolutions #logisticsmanagement 

Fruition Logistics is shaking up the refrigeration/cold chain industry! Traditional Dry LTL carriers are expanding their land, but Fruition Logistics is expanding their service for you. Tired of hearing "we cannot handle refrigerated LTL only FTL"? Say goodbye to paying FTL prices for a few pallets. Fruition Logistics has got you covered. #flex #LTL #logistics #supplychain

US LTL carriers are facing a major challenge in 2024 - land. As shippers' needs evolve, LTL terminal designs must follow suit, prompting carriers to seek more property in growing markets. However, the cost of LTL terminals and land is rapidly increasing, with prices for terminals in some markets rising by 30% to 40% or even higher. To grow, LTL carriers need more space for containers and trailers. Therefore, the more area they have to place loaded and unloaded equipment, the better off they are. Adapting to stay competitive is crucial for LTL carriers, as terminals designed for the 1990s, let alone the 1970s or 1950s, won’t support the freight shipping needs of the 2020s or 2030s. As a result, LTL carriers are chasing customers and seeking more land in growing markets to keep up with the changing needs of shippers. #LTLcarriers #freightshipping #logistics #supplychain #transportation #landcosts #terminaldesigns #shippingindustry #marketgrowth

Hey there! It’s an interesting situation for sure. It seems like we’re in a bit of a tug-of-war between the carriers and brokers lately. Carriers are likely responding to increased operational costs and market conditions, which is pushing their rates higher. On the flip side, brokers might be trying to stay competitive, but lowballing can become a risky game. This dynamic could lead to strained relationships in the industry. If brokers consistently underbid, they may lose the trust of carriers, who might not want to work with them in the long run. Meanwhile, shippers may not fully appreciate the value of quality service if they're just looking for the lowest price. It’s all about finding that balance and ensuring that both sides feel valued. It might be a good time for brokers and carriers to open up conversations around maintaining fair rates, so everyone can thrive. What do you think? https://lnkd.in/dZU6_98J 1. #FreightBroker 2. #Logistics 3. #Transportation 4. #SupplyChain 5. #FreightForwarding 6. #Shipping 7. #Trucking 8. #CarrierRelations 9. #LogisticsSolutions 10. #FreightRates 11. #3PL (Third Party Logistics) 12. #Cargo 13. #ImportExport 14. #FreightIndustry 15. #TransportationManagement

Large container ships are chartered until 2025, so carriers charter smaller vessels. The owners fix the rates for a longer period due to the limited urgent tonnage. Freight rates are rising, and although market activity has decreased, there is a shortage of freight capacity. Operators are trying to fill in the "gaps" in services, and shipowners are raising rates. Most transfer container ships to freight for long periods, but short-term freight (2-3 months) is becoming more common with six-figure rates.

Is the honeymoon over for shippers? With tight capacity and high demand, carriers hold more leverage in negotiations. This shift in the power dynamic might leave shippers feeling a bit overwhelmed. But fear not! Freight brokers can still be your wingman. My vast carrier network and negotiation expertise can help you find competitive rates even in a tough market. #logistics #freightbrokerage #shippers #carriers #markettrends

Question to freight brokers and shippers A) Choose a carrier with year round rate or set up seasonal rate? This carrier can take care of majority of your shipments. B) Post a load and find new carrier on every load. Negotiations goes on and you end up saving some $$ in slow season. However, you are ready to pay high $$$$ in busy season.