SCS Weekly Rundown | June 25th, 2024
Southern U.S. Trucking Rejection Rates Rising
Breaking a stability trend, rejection rates have reversed course and hit a 2-year peak.
The trucking sector in the Southeastern U.S. is grappling with capacity challenges, as rejection rates for regional dry van loads have climbed to a two-year peak. This critical freight hub, including significant markets like Atlanta, now sees spot rates nearing or surpassing contract rates. This rise complicates shipper efforts to secure capacity during busy summer months, highlighting issues of uneven freight flows and the struggle to manage capacity nationwide.
Learn more about what's happening here.
------------------------------------------------------------------------------------------------------------------------
Disruption Ramifications Still Months Away
Shipping disruptions have become very common, but their drawbacks may be delayed.
Overseas shipping problems, especially in the Red Sea, have gone largely unnoticed by consumers up to this point, even as the cause of major disruptions. Rising freight rates and container shortages are affecting global trade, and in a few short months, consumers will likely begin seeing the ramifications. These issues further highlight the fragility of global supply chains and broader geopolitical instability.
Dive into more detail with the full article here.
------------------------------------------------------------------------------------------------------------------------
Texas Logistics Firm Leaves Thousands Jobless
Over two thousand USLS personnel were laid off with no warning and left without pay.
Texas-based U.S. Logistics Solutions, formerly Forward Air Solutions, suddenly ceased operations, impacting nearly 2,000 employees. The closure, confirmed by former president Eric Culberson, was an absolute shock decision by the private equity owner, Ten Oaks Group. The company did not file the required federal WARN Act notice, leaving workers without any warning of their impending lay-offs or their final checks.
Get the full breakdown on this story by clicking here.
------------------------------------------------------------------------------------------------------------------------
Extreme Weather Delays Mexico Freight Lanes
Freight lanes throughout the North American Southwest have been bogged down.
Tropical Storm Alberto is severely disrupting freight operations across South Texas and northern Mexico, causing delays and logistical challenges due to road closures and hazardous conditions. Logistics companies are facing significant impacts as they navigate these issues, and authorities are advising them to plan for potential delays and reroute shipments to ensure safety and minimize any disruptions.
Explore the impact of this story and read the full article here.
-----------------------------------------------------------------------------------------------------------------------