Freight Market Update
Freight 360
A podcast all about having a conversation about the world of freight. Let's Talk Freight!
In today's edition:
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BONUS VIDEO!
Bonus Episode: Chiefs vs. Bills Preview (with Trey Griggs )
As the AFC Championship looms, we’re asking the big questions: Can Josh Allen and the Bills finally topple the Mahomes-Kelce connection, or will the Chiefs' dynasty march on? We're bringing you every play, every stat, and every moment that matters from this epic clash of titans.
?? Ready to dive into the future of the league? Hit play, and let’s talk Bills, Chiefs, and everything in between.
PRODUCE?UPDATE
?? Polar Vortex Price Swings
A polar vortex shook the Southeast this week, bringing icy temps that mirrored the historic inauguration of President Trump, held indoors for the first time since 1985. The deep freeze has put growers on edge, with strawberry prices up 26% from average—now $16 per flat—but still a sweet deal considering the added chill benefits to their growth cycle. Meanwhile, squash markets are grappling with a 29% price hike due to cold snaps in key growing regions, and avocados are racing against Super Bowl demand with a modest 3% uptick. Despite the chills, growers anticipate supply could stabilize as warmer weather allows more production to kick in over the coming weeks.
Not all produce is weathering the storm so gracefully. Pineapple prices surged 10% as Costa Rica faces historic droughts and shipping constraints through the Panama Canal, with relief unlikely until March. Yet, the broader ProduceIQ Index rose just 0.8% this week, reaching $1.26/pound. As supply catches up, these frosty price hikes could start to thaw—but for now, the chill is here to stay.
MARKET UPDATE
?? Market Overview
The freight market showed mixed signals during Week 4, driven by seasonal trends and lingering winter conditions. The Logistics Management Index (LMI) dipped slightly to 57.3 in December, reflecting seasonal inventory drawdowns after a record-breaking holiday shopping season where U.S. consumers spent nearly $1 trillion. Transportation prices climbed 3.0 points to 66.8, the fastest growth since April 2022, as capacity stayed stable at 53.2. In the Great Lakes region, freezing temperatures tightened capacity, pushing spot rates higher, with Chicago outbound rates up $0.13/mile to $2.51/mile. While national load-to-truck ratios and linehaul spot rates showed minor fluctuations, regional weather disruptions highlighted localized challenges.
?? Dry Van Market Trends
Dry van capacity remained abundant despite spot rate increases in colder regions like the Great Lakes. The national dry van load-to-truck ratio ended at 7.76, identical to last year, signaling stability in load volumes. Chicago led regional price hikes, driven by seasonal cold weather, with rates reaching $2.51/mile. Further east, South Bend, IN, saw a $0.15/mile increase, while Michigan experienced a modest $0.01/mile uptick. However, the national dry van average fell $0.03/mile to $1.81/mile. Despite minor dips, spot rates remain $0.09/mile higher year-over-year, showing resilience amid fluctuating seasonal demand.
领英推荐
?? Reefer Market Insights
The reefer market experienced significant volatility as Super Bowl-related demand surged. Avocado shipments from Mexico peaked, with outbound McAllen, TX, rates jumping $0.74/mile to $3.00/mile, the second-highest winter rate in five years. High-volume lanes to Dallas and Fort Worth saw 16-25% year-over-year increases, with carriers earning $3.37/mile northbound. Nationally, the reefer load-to-truck ratio dropped to 11.43 as post-holiday volumes slowed. Spot rates averaged $2.16/mile, down $0.05/mile week-over-week but still $0.04/mile above last year. Rates are expected to cool further as the market transitions into spring shipping season.
??? Flatbed Market Overview
Flatbed freight showed strong regional performance, particularly in the Southeast, where winter storms disrupted operations. Outbound flatbed spot rates in the region climbed to $2.39/mile, $0.13/mile higher year-over-year, with volumes up 11% compared to the same period in 2024. High-volume lanes, such as Jackson, MS, to Houston, saw spot rates rise 16% year-over-year to $2.46/mile. Despite a slight national rate decline to $2.03/mile, DAT forecasts a $0.45/mile increase by mid-May, coinciding with seasonal demand peaks. Flatbed load-to-truck ratios also rose 4% to 27.41, reflecting tight capacity amid steady freight demand.
NEWS UPDATE
?? Winter Tires 101.
Winter roads mean one thing: traction is king. In a recent Noregon video, tire expert Mike McGuinness stressed the basics—keep an eye on ice, snow, and tire pressure. The colder it gets, the more your tire pressure drops—about 1–2 psi for every 10°F decrease. For example, in Ohio, a temperature drop from the 70s to the 30s could cause a tire to lose up to 12 psi, flirting with a flat condition. Neglecting this can lead to poor handling, reduced fuel efficiency, and uneven tire wear. The fix? Check tire pressure regularly, ideally first thing in the morning, and keep those treads above 4/32 inches for steer tires and 2/32 inches for all others.
McGuinness also flagged some less obvious but equally critical tips: ensure proper tire alignment, balance, and check inner tires on dual-wheel vehicles—often overlooked but essential for safety. Winter wear can also take a toll, leaving all-season tires brittle by spring. Shockingly, 50% of roadside emergencies involve tires, with many drivers unsure about proper inflation. Bottom line? Tires are the foundation of safety. Invest in tire maintenance and simple driver training to keep your fleet safe and rolling through winter’s worst.
?? Tariff Tango Heats Up.
Since his inauguration, President Trump has reignited the tariff debate, targeting Canada, Mexico, China, the EU, and Russia. Canada vowed retaliation with dollar-for-dollar counter-tariffs if Trump enforces a 25% levy starting February 1. Prime Minister Trudeau stressed the importance of collaboration over conflict but warned of economic warfare. Mexico, also in Trump’s crosshairs, urged calm and cited USMCA protections, with President Claudia Sheinbaum initiating diplomatic talks to avoid escalation. Meanwhile, Trump’s rhetoric against China, citing fentanyl concerns, revived trade war fears, with China’s officials countering that “protectionism leads nowhere.”
The EU and Russia are also feeling the heat. Trump criticized the EU’s trade imbalance, prompting European Commission President Ursula von der Leyen to promise firm countermeasures while advocating for negotiation. As for Russia, Trump tied new tariffs to ending the Ukraine war, signaling a potential economic squeeze if no resolution emerges. Amid this global standoff, trade volumes are shifting—U.S. imports from China are up 14% week-over-week—underscoring the complexity of modern supply chains. While Trump’s tariffs aim to rebalance trade, they risk sparking a global economic showdown.
?? Fast-Track Tech Training.
The FMCSA has greenlit a five-year exemption proposed by the ATA to cut the time required for technicians to qualify as commercial vehicle inspectors. Instead of the standard one year of experience, new techs can now become certified in as little as four months using the Technology & Maintenance Council’s Recommended Practices (RPs). These RPs, which cover over 500 procedures, aim to maintain high safety standards while addressing the ongoing shortage of diesel technicians—currently estimated at 40,000 nationwide. The ATA believes this streamlined approach will bring fresh talent to the industry faster, helping fleets keep their vehicles safe and operational.
TMC Executive Director Robert Braswell noted that this shift removes red tape and equips students with hands-on, lab-based instruction alongside classroom learning. The new policy allows technicians to self-certify training completion via TMC-based programs, enabling faster workforce entry without compromising safety. FMCSA’s approval underscores the flexibility needed to meet growing industry demands. By reducing barriers, the trucking world is poised to welcome a new wave of skilled techs, tackling a workforce gap where replacement roles outpace new growth positions by 4 to 1.
?? Egg Prices Take Flight.
Egg prices are cracking records as Maryland and Delaware battle a worsening avian flu outbreak. With over 134 million birds affected nationwide since 2022 and more than 20 million egg-laying hens lost last fall alone, the supply chain is struggling to recover. Grocery shelves are sparse, and prices for a dozen eggs have jumped from $2.71 in June 2024 to $4.14 by December. The Delmarva Peninsula, a top broiler chicken producer supplying 6.5% of U.S. poultry, has been hit hardest. The outbreak began in December with tainted wastewater in Delaware and quickly spread to Maryland, killing snow geese and devastating commercial flocks.
Local leaders are scrambling to contain the spread, with Maryland confirming its fourth case in a week and implementing quarantines and culls to stop the virus. Delaware and Maryland’s joint task force is working tirelessly to control the outbreak, but recovery will take time. According to the American Egg Board, replacing lost flocks could take up to nine months. Until then, consumers will feel the pinch as supply struggles to meet demand in this unprecedented crisis.
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