We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Freight capacity pinch will continue into 3rd and 4th quarters, 3PL forecasts

Freight capacity pinch will continue into 3rd and 4th quarters, 3PL forecasts

Transportation Insight report predicts tight conditions across small parcel, LTL, truckload, and ocean routes.

xport-insight-Screen-Shot-2021-07-08-at-12.50.05-PM.png
July 8, 2021
Supply Chain Quarterly Staff
No Comments

Freight capacity challenges from the first half of 2021 will likely continue into the second half of the year, according to a forecast from third-party logistics (3PL) and supply chain solutions provider Transportation Insight.

The Hickory, North Carolina-based firm creates a quarterly report examining trends and providing multi-modal transportation and logistics management insight across full truckload, less-than-load (LTL), small parcel, international, and brokerage environments.

Conditions will remain tight across the major transport modes, including small parcel, less than truckload (LTL), truckload, and international ocean routes, the report found.

Looking into the third quarter of 2021, capacity constraints for small parcel shipments will become even more pronounced ahead of the holiday peak, as both the UPS and FedEx Ground divisions will likely limit capacity to maintain service levels and remain profitable, Brian Broadhurst, Transportation Insight’s vice president of parcel SMB Solutions, said in a release.

Likewise, less-than-truckload (LTL) traffic will see a continued capacity crunch and possible rate increases. “Conditions are unlike anything the market has experienced. Many major carriers are not accepting new business. Fuel surcharge averages are trending upward to 22%,” Transportation Insight’s vice president of pricing services, Chris Mendenhall, said in the report.

The truckload sector also faces a variety of capacity issues and rate increases, and truck and driver shortages are contributing to astronomical spot rates—already up 61% on average across all equipment types and set to rise even higher. “All indicators point toward a full truckload environment with tighter capacity and elevated truckload contractual and spot rates continuing to [the] third quarter,” James Mathews, Transportation Insight’s senior director of truckload procurement, said in the release.

Finally, international ocean shipping disruption will continue through peak season. Port congestion on the U.S. West Coast is slowly improving, but shipping costs that are already at historically high levels, will increase “in a substantial way” over the quarter, the firm said. And demand for air freight is also on the rise, driving up costs as capacity issues build.

Capacity demand is driving up over-the-road transportation rates. Parcel carriers are already prepping new peak season charges. Fuel costs are increasing everywhere. What’s next?

Read our updated Transportation Rates Forecast for an exclusive look ahead. https://t.co/K3pu47oslx pic.twitter.com/a85unn6Ypk

— TransportationNsight (@TransprtInsight) July 1, 2021
Logistics Trucking
KEYWORDS Transportation Insight
    • Related Articles

      Capacity challenges will continue in 2021

      Shipping forecasts see difficult conditions heading into 2022

      Industrial property market to continue multiyear roll in '17, JLL forecasts

    Recent Articles by Supply Chain Quarterly Staff

    Cargo theft and fraud rose 41% in the first 20 weeks of 2023 over last year, CargoNet warns

    Gartner: Top supply chains of ’23 balance risk control, new growth channels

    OSHA, industrial safety experts to headline National Forklift Safety Day 2023

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    20221107korber large vs

    Enhancing Customer Experience with Your Supply Chain Strategy

    Viewer Contributed
    With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing