Container Shortage Indicating Demand Surge
Empty rail container movements into Los Angeles have increased sharply, highlighting a strain on container availability, both domestically and internationally. Consumer goods from Asia, mainly routed through southern California, are transported eastward by truck and rail. This persistent demand has created a significant imbalance, with empty containers heading back to Asia, tightening capacity in the U.S. Despite rising tender volumes, the transportation market has handled the pressure well so far. Intermodal services have relieved some pressure on truckload capacity, which remains abundant, but tender rejections spiked in June, hitting multi-year highs.
Heading into Labor Day, truckload capacity remained stable, but concerns about credit instability in the trucking sector suggest carrier exits may tighten the market by the year’s end. With strong demand expected in Q4, the domestic transportation market faces growing risks. TLC is adapting to these shifts, ensuring clients’ freight moves smoothly despite market volatility. Contact us today to prepare for upcoming capacity challenges.
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