The TL market continues to be surprisingly strong with no sign of slowing. From being completely dead in April, spot rates are now up over 30% from their lows this spring and are now averaging over $2.00. This is the highest they have been since December, 2018.
Additionally, ocean container freight rates from East Asia to the US are at their highest levels in nearly 2 years, although we have seen these rates level off in the past month. Still the rates are about 100% higher than they were just 4 months ago.
On the positive side, oil remains around $40 / barrel, which is keeping the national diesel average at around $2.40 / gallon.
Mike Mulqueen is a Partner at JBF Consulting and leads the Logistics Technology Strategy practice. JBF Consulting is a unique supply chain execution consultancy of TMS experts. Sign up here to receive the JBF Freight Transportation Bulletin, published monthly: http://bit.ly/JBFbulletin2020.
Founded in 2003, JBF Consulting is a supply chain execution strategy and systems integrator to logistics-intensive companies of every size and any industry. Our background and deep experience in the field of packaged logistics technology implementation positions us as industry leaders whose craftsmanship exceeds our client expectations. We expedite the transformation of supply chains through logistics & technology strategy, packaged & bespoke software implementation, and analytics & optimization. For more information, visit us at www.jbf-consulting.com