Tuesday, October 13 2020
Orlando, Fla.— These should be very encouraging news.
A report from Logistics Managers Index revealed that September’s robust readings are driven primarily by the tightening capacity in both transportation and warehousing as the demand for logistics services increases ahead of the fourth quarter.
On Oct. 29, the Bureau of Labor Statistics will announce the gross domestic product for the third quarter, and a record-setting growth is expected. According to industry sources, van load rates in September were up 28.8% compared with a year ago, and have continued to rise in October averaging $2.46 per mile, a 9-cent increase since the beginning of the month. Flatbed rates are up 9.9% year-over-year and have jumped a nickel in the past two weeks, also to $2.46 a mile. Refrigerated rates are up 19% year-over-year — and 3 cents in the past two weeks — to $2.60 per mile.
Capacity in the industry is as tight as it has been in years, as per the American Trucking Associations.
As we know, this particular year e-commerce is expected to be at record-high levels during the holiday season. Retailers are doing what is needed to keeping those sales by restocking their inventories, especially those those with more challenges— coming from international suppliers who showed more difficulty to make regular deliveries early on during the lockdown.
Over-the-road carriers are enjoying a period of volume growth and pricing power that would have been considered shocking but welcomed, from an April 2020 vantage point.
A report from Act Research, a recognized leading publisher of commercial vehicle industry data, market analysis, and forecasting services for the North American market, revealed important economic information for the U.S., and what to expect this Q4. According to ACT, our economy is recovering from the pandemic in a ‘K-shaped’ pattern, while the freight economy is experiencing a ‘V-shaped’ recovery pattern (in other words, better than the rest). Other segments that are experiencing an ‘L-shaped’ pattern.
At Florida Transportatiopn Insurance, similarly to how your clients depend on you for Package Delivery and Last Mile Services, you can depend on the advice of our local agents to help protect your business.
With 10+ years in the Central Florida transportation insurance industry, our staff and agents, have the knowledge to protect drivers and public auto businesses. Our specialized carrier network and knowledgeable underwriters can offer you insurance coverage that are unmatched in the same day, expedited delivery and logistics industries.
We know what it takes to keep your business on the road safely and profitably. With some of the best coverages and services in the industry, along with our extensive experience in the transportation industry, we can make it an advantage for you. Give us a call right now to speak with one of our local licensed, experienced agents, or if you prefer using online technology, just clic on Florida Transportation Insurance any time of a day to receive quotes and more information.
Mariana Zorrilla CIC, CRIC,CPIA
Email Mariana Zorrilla
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