Transportation Trend - November 2023

November 2023

The freight industry continues to be shaken up as more high-profile companies file for bankruptcy. TLI has announced a recent HQ relocation.

TLI News

Our company recently completed the move to a new Headquarters office in Exton, PA. The decision has been made to enhance accessibility to clients and have an improved geographical advantage.

Read the Full Release >

Industry News

The freight industry continues to shake as high-profile companies declare bankruptcy or participate in layoffs. 

Below are major updates:

Convoy, backed by investors such as Bezos and Gates, filed for bankruptcy back in October.

Minnesota-based truckload carrier Twin Express declared bankruptcy.

Pennsylvania-based brokerage Elite Transit Solutions has laid off 65 employees amidst inability to pay carrier partners.

Shipping giant Maersk announced a 10,000 employee lay-off amidst lower revenues and freight volumes.

Major national LTL carrier Yellow Corporation filed for bankruptcy in the summer. 

There are many reasons for these bankruptcies including a recent turn in profitability and debt at companies. This was caused by lower freight volumes and freight rates through out the year.

Less-than-Truckload

Recent conversations with LTL carriers highlighted a higher volume of freight in their systems. Most carriers are reporting higher year-over-year volumes in the mid-teens to twenty percent and operating above capacity levels. The main factors of higher volume appear to be Yellow’s bankruptcy fall out and other industry challenges.

An October 2 cyber-attack at Estes Express was another industry challenge. Estes worked to bring back their IT Systems one by one successfully over a three-week period. During the attack, shippers diverted some freight to other carriers. This added to the additional freight volume in other networks received by Yellow’s Bankruptcy. 

Truckload

Truckload capacity remains loose as shippers demand remains lower than available capacity. Spot posts are down 48.1% on DAT comparing year-over-year. Truck posts during the same timeframe are down 15.9% with load-to-truck set at a national average of 2.11 loads per truck. Carriers are feeling pressure to operate at lower rates to cover costs.