There's a routing guide shake-up happening right now.
The automotive, chemicals, and food industries are fueling North American economic integration.
Rejections and rates set to go higher from here on sustained shifts in consumer behavior.
We don't think that capacity will loosen soon, but upward pressure on contract rates will take time.
Trucking markets are increasingly diverging from seasonal patterns.
The summer rally has already been stronger and longer than in 2018 and 2019.
126 of 135 freight markets saw tighter trucking capacity than they did last week.
Now volumes are only down 3.36% year-over-year.
If volumes ramp, Q2 could also be challenging for freight brokers.
In Q1, some railroads grew intermodal (Canadian Pacific), some kept it flat (CSX), while others saw steep declines (Union Pacific).
Keep an eye on markets important to Texas, including Los Angeles, Phoenix, and Dallas, over the next week.
Dallas, Allentown, and Salt Lake City saw volumes grow week-over-week.
The five largest markets took share from the smallest 50.
Intermodal providers are paying for more empty moves and dealing with lopsided demand. But are imbalances structural or cyclical?
Volume declines are slowing, but spot rates plunge below carrier operating costs.
Reefer volumes are still up 21% y/y, but they're falling fast.
Contracted truckload volumes went negative on a year-over-year basis Wednesday and will continue to drop. We expect intermodal capacity to be abundant.
We expect truckload volumes to go negative year-over-year this week.
Diesel rack prices are falling faster than retail, but we're bearish on values for 3 year old trucks.
Asian exports are ramping as North American demand plummets, and containers are caught in the middle.
Trucking carriers and 3PLs reported that volumes softened this week.