Industry Market Trends

CVSA Roadcheck Impact: The CVSA International Roadcheck, which occurred in mid-May, resulted in temporary capacity tightness and an uptick in spot rates, particularly affecting already constrained regions. Carriers faced increased inspections, leading to a short-term reduction in available trucks on the road.
May Produce Season Surge: The month of May saw a significant increase in full truckload demand driven by the produce season, particularly in regions like California, Florida, and Texas. Key produce hubs such as McAllen, TX, and Nogales, AZ, experienced heightened activity, leading to tighter capacity and higher spot rates in these areas.
June Produce Season Continuation: The produce season will continue to drive demand through June, with an emphasis on regions like the Pacific Southwest, Texas, and the Southeastern United States. Expect ongoing tight capacity and elevated rates in these produce-heavy regions as harvesting peaks. As the summer progresses, agricultural shipments will remain strong, maintaining pressure on truckload capacity. Rates are likely to stay elevated in produce-centric areas, with potential easing in non-produce regions as capacity rebalances.

Increased Port Congestion: Major ports are facing congestion due to higher import volumes, with disruptions from geopolitical tensions and severe weather impacting schedules. Ocean freight rates are expected to stay high, influenced by continued port congestion and increased demand for summer goods.
Intermodal Volume Growth: Intermodal freight volumes have seen substantial growth, particularly in the international segment, which increased by 18% year-over-year through March. This trend is expected to continue into June as more shippers opt for intermodal solutions to mitigate truckload capacity constraints and leverage cost efficiencies.
Air Freight Demand: The demand for air freight remains robust, driven by high-value and time-sensitive shipments, especially in the electronics and pharmaceutical sectors. However, capacity constraints and rising fuel costs are expected to keep air freight rates elevated through June and the upcoming peak season.
Port Infrastructure Improvements: Significant investments in port infrastructure, particularly in the Gulf Coast and East Coast, are poised to enhance capacity and efficiency. The Port of New Orleans, for example, has been awarded $226 million for the construction of the Louisiana International Terminal, expected to boost breakbulk and container handling capacities by 2028.

Memorial Day and Summer Retail Activities: The Memorial Day spike in freight volumes for food and beverages, combined with summer retail activities, has led to tighter capacity and higher spot rates. Key regions include Los Angeles, Chicago, and Texas
Produce Season Impact: The ongoing produce season, particularly in California, Florida, and Texas, is driving high demand for reefer trucks to transport fruits and vegetables like berries, lettuce, citrus, and tomatoes. This trend is expected to continue into June, maintaining elevated reefer rates.
Construction and Flatbed Demand: Increased construction activities are boosting demand for flatbed trucks, especially in regions like Houston and Pittsburgh. This trend will likely persist as summer construction peaks, affecting flatbed rates.
Grain, Dairy, and Beverage Movements: The Midwest is seeing increased activity for grains and dairy products, demand for beverage shipments rises with summer events. Key regions include Iowa, Wisconsin, California, and New York

Transportation Events	Upcoming Holidays
Operation Safe Driver, July 7^th – 13^th, 2024 FMSCA Safety week, August 25^th – 31^st, 2024 CVSA Brake Safety Day, Planned but unannounced. TIA Conference	Juneteenth, Wednesday, June 19^th Independence Day, Thursday, July 4^th Labor Day, Monday, September 2^nd

T&LC is hosting a 90 min virtual workshop – Vetting Transportation Service Providers. June 26, 2024 @ 1400 EST. Join BM2’s own Carla Ray Rumford, and others as they help you safeguard your freight. Link to Register: Vetting Transportation Service Providers Avoiding Theft, Fraud & Scams (constantcontact.com)
BM2 hosted internal company wide trainings over theft, fraud, and reducing risk. We continue to develop our employees staying ahead of the scammers, protecting our partners!

At BM2 Freight, we leverage a vast network of over 40,000 carriers, but only the best make the cut as BM2 Primary Carriers. These top-tier service providers handle nearly 30% of our shipments, ensuring top-notch service and security for our customers’ freight.

Market Update June 2024