First-Quarter Trucking Outlook

Special Report

Day said that as the initial surge in rates following Yellow ’ s collapse ebbs , trucking companies are still raising prices through greater use of accessorial fees . Carriers are now charging anywhere from $ 1,000 to $ 5,000 per shipment for oversized freight such as pipes that don ’ t fit on standard pallets .

“ You still have carriers trying to chase away freight that doesn ’ t belong through bold pricing actions , [ like a ] 40 % increase with 30 days to cancel ,” Day said . Such actions are less frequent today than in 2021 and 2022 , when LTL networks were overflowing with freight , but they continue as a form of network management , he said .

“ Even though LTL linehaul rates are somewhat static , there are other actions that carriers are taking in their rules tariffs to either capture more revenue for what they ’ re doing or to drive shipper behavior and avoid less desirable freight ,” Day said .

Shippers , obviously , will be happy if LTL rates rise less than initially expected .

“ We have a lot of annual bids that take place in the first quarter , and that ’ s going to be the test of post-Yellow reset in LTL ,” Day said , adding that “ incumbent ” carriers will be more likely to raise rates to protect yields and cover costs . “ If you introduce that business to a new carrier , you may see a little more aggressive pricing than from an incumbent . We saw that in 2023 .”

email : bill . cassidy @ spglobal . com

Wilmington to add on-site transload facility in bid to pull new business

By Teri Errico Griffis and Ari Ashe

East Coast drayage and logistics provider PortCity is developing an on-terminal transload facility at the Port of Wilmington in North Carolina to capture new north-south business now moving through other gateways .

The move , though , is highly speculative as the port is attempting to court shippers in western North Carolina , Ohio and Kentucky who presently don ’ t use Wilmington , Will O ’ Shaughnessey , vice president of sales and marketing at PortCity , told the Journal of Commerce Jan . 18 .

“ We ’ re trying to convert long-haul drayage back to far western North Carolina , the Kentucky area , mid-west Ohio , that general region , and penetrate a market that has not really ever thought of Wilmington as a gateway strategically ,” O ’ Shaughnessey said , adding the planned 25,000-square-foot facility is due to open by the end of March .

Its size is a fraction of PortCity ’ s 3 million-square-foot warehouse in Savannah , Ga ., and 1 million-square-foot facility in Charleston , SC . Still , the transload facility would provide an alternative to a long-haul drayage from Wilmington , reducing transportation costs for customers .

O ’ Shaughnessey said cargo would be transferred between ocean containers and 53-foot dry-van trucks to keep equipment close to the port .

Brian E . Clark , executive director of the North Carolina State Ports Authority , said in a statement the facility “ will provide an additional innovative supply chain solution for Wilmington port users .”

PortCity will also be investing $ 25 million in a new warehouse with 150,000 square feet of cross-dock space less than a mile away from Wilmington ’ s container terminal . The project has been delayed , but O ’ Shaughnessey said it will still move forward on a to-be-determined timeline .

www . joc . com

A speculative play

The Wilmington transload facility is far from a sure thing , given that more than nine out of 10 loads through the port originate or terminate in Charlotte or Winston- Salem , NC , and Charleston , which are all close enough to Wilmington to be considered a short-haul dray .

Wilmington saw laden containerized import volumes drop 4.8 % last year compared with 2022 , according to data from PIERS , a sister company of the Journal of Commerce within S & P Global . But the transload facility could bring back volume , as O ’ Shaughnessey said the focus will be on products that can move quickly because the facility is not built for storage .

Target carriers include Crowley , Maersk Sealand and Seaboard Marine , which move textiles and apparel in the Carolinas region . In November , Seaboard launched a direct

“ We ’ re trying to convert long-haul drayage back to far western North Carolina , the Kentucky area , mid-west Ohio .”

service to Wilmington to expand its regional network between Central America and the US East Coast and offer another route to transport apparel , textiles , pork , poultry and agricultural goods .

“ We believe there is some play for importers who might be using Savannah or Norfolk to consolidate ... through Wilmington , or peel off seasonal programs or DC-bypass business through the Wilmington gateway ,” O ’ Shaughnessey said .

For north-south business , the primary port competition comes from the popular gateways in Florida that specialize in Latin America business .

email : teri . griffis @ spglobal . com email : ari . ashe @ spglobal . com

February 12 , 2024 | Journal of Commerce 31