KDL’s Post

In the current landscape where supply outweighs demand, larger full truck carriers are indeed feeling the squeeze as shippers assert their leverage. With an advantageous spot market offering more attractive rates compared to locking in capacity through contracts, it's understandable why shippers are opting for flexibility over commitments. This dynamic is particularly pronounced amidst the backdrop of inflationary pressures impacting all shippers, compelling them to navigate between shrinking margins and potentially sacrificing sales orders. As highlighted in the JOC's reporting, even established players like Knight-Swift and JB Hunt are experiencing dwindling contractual volumes, reflecting a broader trend of shipper reluctance to engage in long-term commitments. As previously discussed, the evolution of the spot market hinges on two primary factors: either a surge in shipment volumes or an accelerated rate of carrier departures from the market. These dynamics underscore the complex interplay between supply, demand, and strategic decision-making within the freight industry.

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.

CASS data shows flat linehaul rates in April, along with a decrease in for-hire shipment volumes. #fleet #transportation #supplychain #supplychainmanagement #logistics #logisticsindustry

Why do I get the feeling that panic stricken customers are beginning to divert US East Coast volumes through the US West Coast and pay the premium to truck it across the country? Especially at a time when ocean freight rates are near identical to either coast. Did the great inventory sell-off in 2023 trigger an avalanche of new orders and immense optimism in this years holiday run-up? The below 2 statements from this brilliant article by William Cassidy is a sign the 👆 is true? What do you think? 1/ The strong uptick in the ATA index for May suggests that large truckload carriers, as well as less-than-truckload (LTL) carriers, saw a substantial increase in shipments. 2/ The Cass Freight Shipments Index – a broader measure that includes intermodal and other freight as well as truck shipments – was flat in May from April and down 5.6% year over year. #logistics #PortCongestion #containers Silq https://lnkd.in/gAU5NPMN

Chaos in the freight brokerage world LOOKS like endless load boards and the frantic scramble to cover loads. 👀 But, it FEELS like Hugh Jackman walking away from an explosion—intense, unpredictable, and a bit dramatic. 🔥 We get it… "Post and pray" isn’t the way to book freight. ❌ With C4, brokers can leave the chaos behind, skip the load boards, and secure more reliable freight with a trusted carrier network. ✅ #3PL #3PLs #Freight #SupplyChain #Logistics

The logistics industry is eager for a freight recovery after a cargo recession that has dragged on for a couple of years and J.B. Hunt's better-than-expected earnings boosted expectations that the rebound is afoot. J.B. Hunt's volume --except for intermodal -- and pricing are still weak compared with a year earlier. The intermodal surge was likely fueled by shippers moving their goods early to avoid supply-chain disruptions, including Red Sea rocket attacks that have practically closed the Suez Canal and the threat of an East Coast port strike, which happened, but was over quickly. This pull forward of freight may result in peak season being a dud. The freight recovery will happen, but not right now. Read more in my latest column: https://lnkd.in/eZS6NAJu