UPS announces ANOTHER fuel increase, trucking capacity continues to fall

Weekly Updates

7/12/2024

·         Parcel – UPS has announced its demand surcharges, effective on July 15th.

·         Parcel – In addition to the demand surcharges, UPS has announced another .5% fuel surcharge increase for US Ground Domestic, SurePost and Domestic Air.

·         LTL – More terminals formerly operated by Yellow are reopening with Estes announcing functional facilities in Minnesota and California.

·         Truckload – Load and truck posts dropped on the DAT One network, as businesses took time off for Independence Day. While load-to-truck ratios fell, national averages for dry van and reefer freight largely stayed flat on the spot market. Here are the truckload modal spot postings and rate comparisons (WoW/MoM/YoY).

o    Van: Load-To-Truck: -40.3%/+7.5%/+34.9% - Rates: +0.9%/+1.7%/-1.1%

o    Flatbed: Load-To-Truck: -32.4%/-18.5%/+9.7% - Rates: -0.6%/-0.4%/-4.1%

o    Reefer: Load-To-Truck: -36.6%/+11.9%/+28.2% - Rates: +0.8%/+0.8%/-1.9%

·         Trucking – Over 20 freight brokerages are claiming that Agility Express and its network of ‘affiliated carriers’ targeted their companies prior to Independence Day and are holding 36 confirmed loads for ransom.

·         Trucking – Overall trucking capacity continues to fall in the market. However, the rate of attrition lessened in May and June after 9,000 carriers left the market in Paril.

·         Trucking – Trucking parts and labor costs have fallen for the 2nd consecutive quarter, dropping 1.7% from Q4 ’23 to Q1 ’24.

·         International – The Freight Logistics Optimization Works (FLOW) platform – the DOT initiative rolled out in 2022 to provide visibility into port volumes and capacity – is operating as intended and providing forward-looking supply chain visibility to help organizations plan – at least according True Value, a founding member.

·         International – Industry experts are expecting rate increases in the airfreight markets during peak season and recommending working to get contracted pricing in place as soon as possible to avoid being ‘at the mercy of the market.’

·         International – The South Carolina Ports Authority and the International longshoremen’s Association reached an agreement to reopen the Leatherman terminal and increase overall import capacity in the state.

·         Supply Chain – Political uncertainty, global disruptions and labor scarcity could all lead to a challenging manufacturing and supply chain environment for the remainder of 2024.

·         Supply Chain – Speaking of labor scarcity, SupplyChainBrain released an article on how to retain top supply chain talent in 2024. Key points are investing in the future of existing talent and prioritizing work-life balance to avoid burnout.

·         Supply Chain – Speaking of developing future talent, SCMR gives Five Organizational Action Areas for Developing Supply Chain Talent. My favorite? Managing through ambiguity.