Freight companies announced rate increases despite the uncertain freight market. UPS said that the rate increases will support ongoing expansion and capability enhancements. LTL rates are primed for an overall 1.5% increase in 2016, and another 2% increase in 2017. (Read: Transportation Outlook: What if there’s Another Recession?)
Fleets Not Increasing Wages. Driver pay increases during Q2 sank to the lowest level in 7 years. The average increase was less than a half-cent per mile, the smallest change since the second half of 2009. National driver pay trends fell flat, but many fleets believe market conditions will improve in the next 12 months. (Source: Transport Topics) Find out the real story behind freight rates and driver pay here.
Drama on the Sea: $14B in Cargo Stuck in the Water. Hanjin Shipping Co. of South Korea filed for bankruptcy protection, so their cargo containers have been denied access to ports because of doubt about payments. Hanjin accounts for about 3.2% of global container capacity, and the disruption is expected to be costly. Hanjin has been ordered to return chartered-in ships to owners and to sell as much of its own fleet as possible. Transport Topics reported that Hanjin Shipping won’t allow containerships anchored at sea to complete their journeys to the US. The email was sent from Hanjin on September 22 to Wal-Mart, Target, Lowe’s, Home Depot, Hewlett-Packard, Medline and the holding group of HomeGoods, TJ Maxx and Marshalls. Most vessels will return to South Korea to discharge, and the retailers will have to find another way to get their cargo to the US. (Source: WSJ.com and Transport Topics.)
Survey Reveals Carrier Response to ELD Mandate. The survey gained insight into implementation preparedness and expected impact for transportation carriers. The study revealed a significant difference in the amount of implemented ELDs between large and small fleets. 81% of large fleets reported they had achieved full ELD implementation while only 33% of small fleets have fully implemented the technology into their fleet. (Find key observations from the study here.)