Rail Freight Tightness Pushing Capacity Onto OTR, Trucking Rates Rising with Low Availability
Shipping hubs and major ship-from locations across the country are struggling to meet freight requirements via all types and lanes, causing the tightness of the railroad freight markets to have big implications further down the supply chain. The lack of rail freight availability has pushed capacity to OTR methods, further affecting those lanes that were relatively cheap and easy to book.
In less than a month, quotes for OTR lanes in certain markets have been quoted as much as 40-100% higher.
To alleviate these concerns and ensure that freight arrives at its desired destination, logistics managers are making allowances for minor flexibility in shipping dates and additional transit time, as well as permitting freight companies to ship with other partial loads, depending on the product being shipped and its requirements. Regardless of your role in the logistics industry and your outlook on the near future, a one-size-fits-all solution to the current market does not exist. Managers need to assign costs and allow for extensive lead times and planning for the near and even semi-distant future.
With the increased demand on rail freight, trucking availability is tighter, and more expensive than ever