Dear All,
Here is the internal drayage update for the week of 5/24/2021, along with other notable drayage news.
Please note any volume data is only a snapshot of the total inbound volume for this week. It should not be used to indicate capacity or availability,
or for pricing purposes.
Total volume does not take into account factors such as delays caused by storms/ bad weather, or vessel/ train delays.
Danny Quian,
Manager - Overland Products, De Well Group
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Below are some notable drayage updates for this week.
If you would like us to dig deeper into any specific markets,
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"I-40 bridge over Mississippi River to remain closed indefinitely" |
"Temporary repairs could take weeks to complete on span connecting Memphis to eastern Arkansas"
- Nick Austin, Director of Weather Analytics and Senior Meteorologist Follow on Twitter, Freightwaves.com
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No Break in Spot Rate Increase |
Analysts see no break to increasing spot rates due to huge demand. Produce season is also around the corner, which will take up even more trucking capacity
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Memorial Day Weekend Update:
- We are focusing on getting all boxes covered today before the long weekend to avoid any big demurrage/ rail storage cases.
- Capacity has been hard to obtain this week. Truckers have not been accepting same-week add-ons as they are being cautious about what they accept.
- We expecting capacity to remain very tight next week. As truckers work to pull all the holiday backlog containers out. Truckers are not accepting new DOs for next week either.
The following ports will all be closed TODAY (Monday March 31):
• LA/Long Beach, CA (Bulletins section)
• Oakland, CA
• Seattle/Tacoma, WA
• Houston, TX
• Mobile, AL
• Savannah, GA
• Charleston, SC
• Wilmington, NC (bottom of page)
• Norfolk, VA
Overall, we have been really struggling to cover all boxes due to the increased volume. Our priority is to provide excellent service for all of our existing customers. We need to prioritize whom we give capacity to. Accepting door moves from new and small customers will affect our ability to service our VIP accounts.
Charleston:
- We have called dozens of truckers, but none can confirm capacity.
- Capacity shortage is an issue, but so is the lack of yard space. All of our trucker’s yards are completely full, so they can’t even offer to prepull
- Some truckers are won’t accept DOs period. Most truckers are booked 4-6 weeks out.
- Due to the extreme backlog, most truckers will not even quote us new business. Please keep this in mind when your customers are requesting Charleston lanes
- Please avoid all shipments that require tri-axles. We do not have any availability
- OW shipments should be avoided in general, as that further limits capacity and exposes us to demurrage risk
- All deliveries will be delayed. Truckers are just Yard pulling and delivering as fast as they can, but there is only so much they can do
- Please warn customers about all related extra charges- chassis, yard storage, possible demurrage, and per diems
- No capacity for lanes over 250 miles. Please stop requesting for Alabama and Tennessee. We will not be able to quote
Savannah:
- Same as Charleston. Big Volume coming in this week. Has been very difficult for us to cover every single shipment
- All truckers are booked about 1 month out. Very difficult to cover last minute
- Our local trucker for Rincon, GA, and other short lanes is maxed out on capacity. They are doing their best to pull everything out before LFD. Right now they are struggling to keep up
- The capacity for longer lanes is very tough to cover. We have had a container that was over 300 miles and we could not cover a long time. Suffered multiple days of demurrage
- If customers are asking for same-week add ons. Please reject, we do not have extra capacity
Memphis:
- Very busy right now. Especially due to I40 bridge collapse.
- The congestion in and out of UP Marion has gotten worse this week. Drivers are stuck for many hours trying to out gate and return.
- The Surcharge for UP will now be $250 X 2 for pick up and return
- Chassis shortage is still an issue, which does not help our search for new capacity.
- Rail storage is still a regular occurrence due to our limited capacity options and lack of equipment
- We are still trying to get more capacity, but most truckers in Memphis are not willing to take us on due to credit concerns
Chicago:
- Capacity is still very tight.
- Short lanes are easier to cover. Long lanes are extremely tough to do. Most truckers avoid layover lanes (250 miles or more)
- Chassis availability issues come in waves. This week didn’t have as many arrivals, so it was not an issue. However, that can change on any given day/week.
- Overweight capacity is limited as we lost our trucker that had their tri-axles pool. We can’t get anyone else committed at this point. Please try to avoid all OW lanes.
- Hazmat capacity is also limited for us. Should be able to handle 1-2 boxes at a time, but definitely not more.
Minneapolis & Detroit:
Both areas are busy for us due to Menards' business. Our truckers are maxed out on capacity.
Kansas City:
- Usual Chassis shortage issues.
- Capacity has been tough to source. We are relying on current truckers to do their best to get everything pulled out.
- Rail storage cases still very possible as most truckers are not accepting new customers/ lanes
- Please avoid long lanes to Kansas City. Anything over 150 miles should be avoided. We had some rail storage cases.
Los Angeles and New York:
- We have good capacity and we are able to cover all of our current freight
- However, volume is increasing and congestion is getting worse
- All of our truckers are now charging higher Port Congestion Charges- We are increasing to $200 effective now
- FBA capacity is still the same, which is very limited. Do not over-commit on Amazon loads
Dallas and Houston:
- Capacity is good. We have not had issues in Texas in several weeks.
Domestic Market:
- Rates are skyrocketing across the country, but especially in both Southern California and Georgia.
- We have seen big increases in rates due to more volume and also spikes in fuel.
- This trend will continue. Summer months are forecasted to be even busier and more expensive. Then we will enter the holiday shipping season which traditionally is even more expensive
- Analysts also see no break to increasing spot rates due to huge demand. Produce season is also around the corner, which will take up even more trucking capacity
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