Monthly Roundup - May 2023

Transportation Industry News - May 2023

DOT Week - International Roadcheck Week 2023

May 16 denotes the start of a 72-hour inspection period from the Commercial Vehicle Safety Alliance (CSVA). During this time, inspectors will conduct inspections of motor vehicles across Canada, Mexico, and US. Last year the number of inspections totaled 59,026. It’s expected that on average 15 vehicles are inspected every minute.

With only 72 hours of inspections, this week historically shows tighter capacity as carriers plan to avoid the roads the whole week. Drivers typically would rather miss out on delays, increased scrutiny, and potential violations.

Learn how to prepare for DOT Week 2023

TLI Reminds Clients of EPA SmartWay Certification

In recognition of Earth Day 2023, our team wanted to reshare our efforts on creating a sustainable future. TLI is proud to be recognized as an EPA SmartWay Partner.

Learn more on what a SmartWay Certification means to our shippers.

Truckload Market

Compared to March, last month showed an ease in capacity as Load-to-Truck ratios dropped 7.4% month-over-month. Spot load posts dropped 21.2% while spot truck posts only decreased 9.1%. The national average spot rate for dry van dropped $0.10 from March to April.

Contracted rates continued to fall into mid-April, per Cleveland Research Center (CRC). However, spot market rates are dropping as well. The market continues to favor spot market rates. Overall, CRC reports indicate that truckload pricing is likely to decline overall 10-15% in 2023.

Less-than-Truckload (LTL) Market

While truckload markets are showing decrease in rates, Less-than-Truckload (LTL) rates continue higher. In the past couple months, demand has also softened in LTL networks, however, carriers are passing through cost inflations to shippers. Carriers choose to reduce capacity/lower operational costs rather than lower price to grow their market share. Cleveland Research Center (CRC) reported to expect 4-6% increase in LTL expense in 2023. 

Economy Update - Manufacturing Outlook

According to ITR Advisor reports, US Total Manufacturing in the last 12 months through March was up 1.8% year-over-year. However, declining US total Corporate Cash and higher borrowing costs are likely to disincentivize business investment. These factors are expected to hinder production activity into 2024.

TLI is actively monitoring situations in the industry, such as acquisitions, embargos, and other industry disruptions. If a TLI client is directly affected by any of these events, your TLI representatives will reach out to discuss what this means for your account.

Please contact your TLI team at 610-280-3210 for any further questions. 

*Article written by Mitchell Kinek CTB, Marketing Coordinator, TLI. Any questions, please do not hesitate to reach out!