State of Freight

State of Freight Overall

Not enough truck drivers in the market to handle capacity
Until the driver market increases, we will see capacity crunch.
Drivers are seeking lanes where amenities are available (parking, showers, …).
Industries are not able to maintain adequate inventory - lots of spot orders.
Truck carriers are trying to give assets to their established customers, so new customers are being turned down

Smaller carriers are handling more loads, but it's not enough coverage to make up for larger carriers not handling amount of loads they have in the past
Freight has always been more difficult to secure in the Northeast, but now more than ever
Rates have increased substantially - customers will be paying more
Tolls have also increased substantially for trucks.
Many accessorials have increased, along with FSC, adding to the overall rate increase. Tank cleaning, steaming and driver detention are the ones with the largest increases
Paying more does not guarantee capacity
Drivers are dictating more today where they want to go
Compartment trucks are extremely difficult to secure and carriers not investing in this equipment - it is expensive and has more temperature issues
Kosher and food grade loads are also extremely difficult to secure. Most kosher & food grade equipment is already in use
Dedicated is preferred by some carriers, but only if they have trailers. If too much dedicated business is serviced, it removes overall trailers for all customers
Carriers need to go to certain locations to keep their system in balance
Texas and Louisiana lanes are easier to cover rather than Georgia, North Carolina & South Carolina - drivers make more money on longer hauls
CSXT secured Quality, one of the largest carriers in the country, for servicing their yards and this took away capacity to companies

Securing available railcars for lease has been more difficult than just as little as six months ago
Rail rates increase each year, there is very little room for negotiation
Fuel surcharges (FSCs) have increased each month. CSX has gone from $0.11/mile in January 2021 to $0.33/mile in August 2021

We are in the process of leasing additional railcars
Asking customers if they can supply their own railcars for pick-up of product
Identifying any customers that can take rail rather than trucks and converting when we can work it
Clean railcars coming back from shop are earmarked for a fleet so they are not used carelessly
Continuing daily Unconfirmed Loads meetings for trucks where we prioritize customers. Salesperson and customer input and cooperation is critical
Cold calling new carriers for any capacity
Customers are looking for their own trucks which is showing that customers are starting to get involved in securing their loads
Keeping terminals stocked with product is key
Investigating terminal options for lanes/products that make sense and have the biggest impact on easing capacity
Creating a survey for drivers to complete as they leave TRT to understand their experience and what amenities they would want
Distributing weekly demurrage reports for our railcars, so we can remind our customers to keep them moving
Carriers added additional driver training locations. They believe enrollment will increase once bonus unemployment benefits run out. Until new drivers enter the market, there will be a capacity crisis
Follow-up conference calls with our carriers
Exploring intermodal rates again for the lanes over 1,000 miles