Truckload rates are illustrating the onset of the peak season as rates climb to a 2021 high of $3.37 cost per mile through the first half of September. Pressure on supply chains continues as imports reach record levels. Ports of entry are illustrating the highest index rates within the Rockfarm indexes. For example, Savannah to Charlotte is posting a $4.00 per mile rate while LAX to Dallas reflects rates at $3.78 in conjunction with LAX to Chicago at $3.13. All rates are at or near 2021 record highs. Capacity from major hubs such as Chicago, Memphis, Atlanta, and Columbus continue to reflect ongoing capacity challenges since the 1st quarter of 2021.
Rockfarm’s key truckload rate indicators illustrate increasing pressure with the tender reject rate for September climbing to 12.37%. Spot market opportunities decreased slightly in July, however, August jumped to their highest level since March of 2021, reflecting ongoing pressure on shippers to capture truck capacity.
The cost of fuel continues to rise and is nearing the highest levels seen since 2018, but still well short of the $4.15 recorded in January 2013. Oil production, impacted by hurricane Ida, has ramped back up, however, a great deal of the Gulf oil production remains shut down two weeks after Ida made landfall. As of September 10th, 66.4% of crude production remained offline which has prompted two releases from the Strategic Petroleum Reserve to Shell and ExxonMobil onshore oil refineries.
Brad’s journey into logistics began as a Marine Officer and transitioned from the LTL docks to the non-asset side within the logistics service provider arena. As a co-founder of Rockfarm, Brad drives our business development efforts and delivery of our promise. An Arizona native, Brad enjoys spending time outdoors in his home state with his wife and family.
“Our approach to the market allowed us an opportunity to push forward in 2008 and enable our mission, “lower the cost to serve” to stand as a cornerstone to our company today.”
Connor D. Wolf, (2021 September). Echo Global Logistics to Go Private in $1.3 Billion Buyout https://www.ttnews.com/articles/echo-global-logistics-go-private-13-billion-buyout
AP (2021 September). Kansas City Southern Picks Canadian Pacific Bid, Transport Topics https://www.ttnews.com/articles/kansas-city-southern-picks-canadian-pacific-bid
The Maritime Executive (2021 September). San Pedro Bay Sets Four New Records in One Day as More Vessels Arrive https://www.maritime-executive.com/article/san-pedro-bay-sets-four-new-records-in-oneday-as-more-vessels-arrive
Hellenic Shipping News (2021 September). U.S. Gulf Coast oil Reiners recovering faster than producers https://www.hellenicshippingnews.com/u-s-gulf-coast-oil-refiners-recovering-faster-thanproducers/
Supply Chain Brain (2021 September). First Autonomous Cargo Ship Faces Test With 236 – Mile Voyage https://www.supplychainbrain.com/articles/33676-first-autonomous-cargo-ship-facestest-with-236-mile-voyage
Statista, (2021 September). Monthly 12-month inflation rate in the United States https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/
Dan Gilmore, (2021 June). Supply Chain Inflation is Here https://www.scdigest.com/firstthoughts/21-06-11_Supply_Chain_Inflation.php?cid=18763