Domestic
Status: YELLOW
- Peak season is upon us. Meanwhile, capacity and labor constraints are growing and truckload pricing is setting new record highs.
- The driver shortage continues. The lack of qualified drivers entering the industry paired with a large portion of the workforce closing in on retirement will continue to be a major concern across the industry. This ongoing issue has only intensified by the pandemic as employers attempt to lure laborers back to work. The industry continues to find ways to attract drivers while the shippers and warehouse operations struggle to hire material handlers to keep the cycle flowing.
- E-commerce accounted for 21% of the total U.S. economy last year. A large slice of e-commerce is expected to significantly surge going into the holiday peak season, gobbling up capacity.
- In preparation for peak season, many of our partners have taken precautions through oversize fees and regional surcharges in an effort to protect capacity in a tight market.
- Imports will continue to bottleneck the ports as volumes increase and a lack of manpower to handle the flow.
- Demand for domestic warehouse space has climbed sharply. The national warehouse vacancy is very tight at 4.8% while space near the ports shrinks to a minuscule 1.4%.
- Last month, we presumed that FTL spot rates had plateaued because historically, truckload spot rates tend to decline in the Fall. However, 2020 and 2021 are now the exceptions. Dry van spot rates this month are up 14% year over year and Reefers and flatbeds are up 18% and 17%, respectively. All new record highs for spot market rates.sp
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IT :
Status: GREEN
- The current challenges in the business environment create the perfect opportunity for learning. Pegasus strives to have a culture of continuous improvement which has led us to go through our Business Continuity Plan (BCP) and improve our plan. Click the link below to read our article on what makes the Pegasus BCP exceptional.
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STATUS KEY:
RED: Selective lanes not moving, driver/labor shortages, regulatory shutdowns, geographic hotspots, border closures
YELLOW: Freight is moving with less capacity, increased expense, reduced handling, with potential risk of future unknowns
GREEN: Freight is moving with no abnormalities |
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