Market Update April 2025

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Industry Market Trends

GENERAL MARKET TRENDS

Fuel Index:
  • Diesel National Averages:
    • This Week: $3.592/gallon
    • Last Week: $3.567/gallon
    • Weekly Change: $0.025
    • Year-over-Year Change:  $0.404

Summary: Diesel prices rose slightly by $0.025 WoW, maintaining a gradual upward trend. The largest increases were noted along the West Coast and Gulf Coast, driven by lingering supply chain constraints and seasonal refinery maintenance. With tariffs on imports from Mexico, Canada, and China now active since March 4, 2025, analysts anticipate potential further diesel price increases of 5-10% in Q2, particularly impacting long-haul and cross-border freight. As refinery maintenance continues, expect regional fuel price volatility to persist through April and May.

Reference: Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

RPM Monthly Movers:
  • National RPM Month-to-Month Changes:
    • Dry Van Markets (February – March) $0.03
    • Reefer Markets (February – March) $0.08
    • Flatbed Markets (February – March) $0.09

POTENTIAL MARKET DISRUPTORS

Seasonal Trends:

As Q1 transitions into Q2, freight markets are facing mixed conditions. Reefer demand is expected to rise sharply with produce season gains in California, Florida, and Mexico, while flatbed markets tighten due to infrastructure projects and seasonal construction activity. Tariffs and cross-border volatility continue to impact key trade lanes, creating regional rate disparities. Van capacity remains loose but may stabilize if retail restocking picks up. Expect gradual tightening across reefer and flatbed markets.

  • Reefer: Produce season is underway, with increasing demand from California, Florida, and Mexico. Volatility is expected through April and May as produce flows intensify, especially citrus and berries.
  • Flatbed: Elevated demand due to construction season, particularly in Houston, Atlanta, and Chicago. Infrastructure projects are bolstering demand, leading to regional capacity constraints and upward rate pressure.
  • Dry Van: Relatively loose capacity with stagnant or downward rate pressure. Anticipate minor tightening in Q2 due to retail restocking efforts and economic recovery.

Trade & Tariff Updates:

The March 4 tariffs are now in effect, impacting steel, aluminum, electronics, and agricultural products from Mexico, Canada, and China. China has responded with retaliatory tariffs of 10-15% on U.S. coal, crude oil, LNG, soybeans, and auto exports. This has reduced U.S. West Coast exports and created new challenges for cross-border freight flows.

What to Watch for in April:

  • Cross-Border Volatility: Continued unpredictability in Midwest and Northeast rates, especially if Mexico and Canada escalate retaliations.
  • Shifting Sourcing Strategies: As companies adjust to tariff-driven cost increases, expect changes in freight patterns, especially for industrial lanes and agricultural exports.
  • West Coast Freight Flow Concerns: Lower export volumes may impact outbound trucking demand from major ports.
  • Rate Fluctuations: Increased volatility expected for lanes tied to retaliatory measures, particularly those moving through key border crossings like Laredo and Detroit.

Forecast: Businesses are likely to continue adjusting sourcing strategies throughout April, with regional rate spikes possible depending on further retaliatory actions and economic conditions. Cross-border volumes may remain unstable, particularly in agriculture-heavy lanes.

MARKET PREDICTIONS & RATE TRENDS

Capacity & Rate Trends:

Dry Van:

  • Capacity: Market remains loose but is expected to gradually tighten as retail restocking and economic recovery progress into Q2. Despite recent downward pressure, some regional improvement is likely by late April.
  • Rates: Spot rates fell by 5.6% in February. Minor increases are expected in April and May due to retail restocking, though overall capacity remains ample.
  • Regional Trends: The Midwest and Southeast continue to experience oversupply, while cross-border lanes (Laredo, Detroit) remain susceptible to sharp rate spikes from tariff-driven volume surges.

Reefer:

  • Capacity: Moderate but tightening, particularly in California, Florida, and Texas, as citrus, berries, and other produce move north. The peak season is expected to drive tightening through April and May.
  • Rates: Spot rates dropped 7.1% in February but are beginning to rise with seasonal produce demand. March and April will likely see accelerated tightening as produce peaks, especially in Southern California and Arizona.
  • Regional Trends:
    • South Texas and Nogales, AZ: Increased outbound demand as produce season ramps up.
    • Florida: Strawberry & citrus season is contributing to outbound tightening.
    • Midwest: Easter-related demand for dairy, protein, and confectionery is boosting outbound reefer rates.
  • Forecast: Rates are expected to continue climbing through April and May. Tariff-related shifts in sourcing and supply chain disruptions may exacerbate regional capacity constraints.

Flatbed:

  • Capacity: Steady but tightening, especially in Midwest, Texas, and Southeast regions. Driven by robust construction activity, particularly in Houston, Atlanta, and Chicago.
  • Rates: Stable in February but projected to increase as infrastructure spending, energy projects, and homebuilding continue to rise. Rates are up $0.07 MoM since February.
  • Regional Trends:
    • Gulf Coast (Houston, New Orleans): Oil & gas equipment demand is driving higher volumes.
    • Midwest: Steel and lumber shipments are increasing, resulting in tighter capacity.
    • Southeast: Homebuilding remains strong, sustaining growth into Q2.
  • Forecast: Flatbed rates will likely continue to rise gradually through May, supported by both government infrastructure projects and private-sector construction demand.

Overall Capacity Rebalancing & Forecast:

  • As April progresses, regional tightening is expected across reefer and flatbed markets, driven by seasonal produce demand, construction projects, and infrastructure spending.
  • Dry van rates will likely experience slight upward pressure as Q2 demand gradually improves, but capacity remains largely available outside of peak seasonal trends.
  • Cross-border freight lanes remain volatile, particularly for reefer and flatbed shipments affected by tariffs, seasonal produce, and construction-related imports and exports.

Key Takeaways:

  • Dry Van Demand: Market remains loose but may see slight improvements from retail restocking and economic recovery in Q2.
  • Reefer Demand: Produce season continues to tighten capacity in California, Florida, Texas, and Mexico, with additional outbound activity expected through May.
  • Flatbed Demand: Driven by construction projects, particularly in Houston, Atlanta, and Chicago, with government infrastructure spending providing consistent support.
  • Tariff Impacts: Ongoing tariffs and potential retaliatory measures continue to influence cross-border freight patterns, particularly on lanes connected to Canada, Mexico, and China.

Port Adjustments & Supply Chain Rebalancing:

  • West Coast Ports: Lower import volumes as shippers shift supply chains to the Gulf and East Coast ports to avoid tariff exposure.
  • Inland Distribution: Increased truckload demand in hubs like Chicago, Memphis, and Dallas as freight is redirected away from congested West Coast ports.

Transportation Events

Upcoming Holidays
Gartner Supply Chain Symposium/XPO, May 5th – 7th, 2025

Procurment & Supply Chain LIVE: Chicago, June 4th – 5th, 2025

 Easter Sunday, April 20th, 2025

Memorial Day, May 26th, 2025

BM2 NEWS

Bonded Freight and BM2

BM2 specializes in bonded freight solutions, helping you defer tariffs and speed up customs clearance amid changing trade regulations (effective March 4). We move bonded shipments like auto parts, electronics, industrial goods, steel, and perishables across the U.S., Canada, and Mexico.

Why Choose BM2?

  • Expedited bonded drayage at key ports/airports
  • Customs expertise with proper documentation
  • Reliable cross-border transport network
  • Defer duties, avoid delays, and stay competitive

Recent News:

  • Carla Bay, BM2’s Senior Operations Support Manager, led a productive month for BM2 by representing the company at the 51st annual Transportation and Logistics Council (TLC) conference and conducting BM2’s bi-annual Fraud & Theft Prevention training.
    • At the TLC conference, Carla collaborated with industry leaders to share knowledge and explore best practices, reinforcing BM2’s commitment to maintaining its position as a leader and expert in the field. Additionally, she spearheaded the mandatory Fraud & Theft Prevention training, equipping BM2’s team with the latest insights into fraud trends to stay ahead of scammers and ensure customers’ freight remains secure.
  • BM2 proudly marked 17 years of serving its customers, staying true to the vision and mission set by founders Matt Mason, Jeff Mason, and Kevin Ball. The company remains dedicated to prioritizing customers and carriers, guided by its core principles: win the day, professionalism, excellence only, and trust the process. These values continue to fuel BM2’s success. A heartfelt thank you goes out to all the customers and carriers who have partnered with BM2 over the past 17 years.

INDUSTRY NEWS TO KNOW

Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

Canada diesel prices, 24-Mar-2025 | GlobalPetrolPrices.com

Mexico diesel prices, 24-Mar-2025 | GlobalPetrolPrices.com

CargoNet | The cargo theft prevention and recovery network

State of Freight Today (ftrintel.com)

US ports by volume: How maritime cargo trends are stacking up | Supply Chain Dive

Cargo Theft Surges to Record Levels as Holiday Season Approaches, Verisk CargoNet Analysis Shows | Verisk

Truck Tonnage Index (TRUCKD11) | FRED | St. Louis Fed (stlouisfed.org)

All Employees, Truck Transportation (CES4348400001) | FRED | St. Louis Fed (stlouisfed.org)

Producer Price Index by Industry: Truck Trailer Manufacturing: Truck Trailers and Chassis, Axle Rating 10,000 Pounds or More (PCU3362123362121) | FRED | St. Louis Fed (stlouisfed.org)

E-Commerce Retail Sales (ECOMSA) | FRED | St. Louis Fed (stlouisfed.org)

United States LMI Logistics Managers Index (tradingeconomics.com)

The Cass freight index | FRED Blog (stlouisfed.org)

Farmer’s Report – Produce Prices & Market Trends | US Foods

Market Update March 2025

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Industry Market Trends

GENERAL MARKET TRENDS

Fuel Index:
  • Diesel National Averages:
    • This Week: $3.635/gallon
    • Last Week: $3.697/gallon
    • Weekly Change: $0.02
    • Year-over-Year Change:  $0.361

Summary: Diesel prices increased slightly by 2 cents WoW, marking a shift in fuel cost trends. The biggest regional increases were observed on the West Coast and Gulf Coast, while the Midwest remains stable. Anticipated tariffs on Mexico, Canada, and China (effective March 4, 2025) could further drive fuel demand higher. Analysts predict a 5-10% diesel price increase in Q2, particularly affecting long-haul and cross-border trucking. Seasonal refinery maintenance cycles could further exacerbate regional fuel price volatility.

Reference: Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

RPM Monthly Movers:
  • National RPM Month-to-Month Changes:
    • Dry Van Markets (January – February) $0.12
    • Reefer Markets (January – February) $0.18
    • Flatbed Markets (January – February) $0.00

POTENTIAL MARKET DISRUPTORS

Seasonal Trends:

As was expected in Q1, post-holiday softening continues, but freight markets are positioned for gradual recovery heading into Q2. Shippers should secure capacity early, particularly in reefer and flatbed markets, as demand accelerates.

  • Reefer: March marks the ramp-up of produce season, with strawberries, citrus, and leafy greens expected to drive outbound reefer volumes in California, Texas, and Florida. Easter-driven demand for dairy, eggs, and confectioneries will further tighten capacity into April.
  • Flatbed: Construction season is beginning earlier than usual due to mild weather. Demand for steel, lumber, and heavy equipment transport is rising in Midwest, Texas, and Gulf Coast markets.
  • Dry Van: Retail restocking continues, but consumer spending uncertainty keeps demand inconsistent. Tariff concerns and import shifts may affect domestic shipping patterns.

Trade & Tariff Updates:

  • March 4 Tariffs on Key Goods: The confirmed U.S. tariffs on steel, aluminum, electronics, and agricultural products are now in effect. Businesses must prepare for cost increases and supply chain shifts over the next few months.
  • U.S. Tariffs:
    • Mexico & Canada: 25% tariffs on auto parts, aluminum, steel, and select agriculture goods.
    • China: Doubling of tariffs from 10% to 20% on key imports.
  • China Retaliates:
    • 10-15% tariffs added to U.S. coal, crude oil, LNG, soybeans, and auto exports.
    • U.S. West Coast exports will decline, lowering outbound trucking demand.
  • Freight Impact:
    • Cross-border trucking volumes surged pre-March 4 as shippers rushed to move goods before tariffs took hold.
    • West Coast freight flows remain uncertain, as China has enacted retaliatory tariffs on U.S. agricultural and energy exports.
    • Industrial freight lanes could see demand fluctuations, depending on how businesses adjust sourcing strategies in response to rising material costs.
    • Midwest & Northeast rates may spike if Mexico & Canada retaliate in Q2.

MARKET PREDICTIONS

Capacity & Rate Trends:

Dry Van:

  • Capacity: Market remains loose, with excess truck availability following a weak February. Q2 demand recovery is crucial to prevent further rate erosion.
  • Rates: Spot market dropped 5.6% in February, reflecting seasonal normalization and softer-than-expected demand. March will be pivotal in determining whether retail replenishment and construction bring stability.
  • Regional Trends:
    • Midwest & Southeast lanes remain oversupplied, keeping downward pressure on rates.
    • Cross-border lanes (Laredo, Detroit) could see sharp rate spikes if tariffs drive last-minute volume surges.

Reefer:

  • Capacity: Capacity is moderate but tightening in Florida, Texas, and California, where produce season is starting to build momentum.
  • Rates: Reefer fell 7.1% in February, despite early produce movements. Delayed harvests and weather disruptions slowed expected rate rebounds.
  • Regional Trends:
    • South Texas and Nogales, AZ seeing increased outbound reefer demand.
    • Florida strawberry & citrus season ramping up—expect outbound tightening in March.
    • Easter-driven dairy, protein, and confectionery demand may lift Midwest reefer rates.

Flatbed:

  • Capacity: Steady but tightening in Midwest, Texas, and Southeast, as early-season construction projects take off.
  • Rates: Flat MoM in February, but projected to rise in March and April as infrastructure spending, energy projects, and homebuilding accelerate.
  • Regional Trends:
    • Gulf Coast (Houston, New Orleans) seeing higher demand for oil & gas equipment.
    • Midwest steel and lumber shipments increasing, leading to tighter regional capacity.
    • Homebuilding in the Southeast will sustain growth into Q2.

POST-MARCH 4 MARKET SHIFT

Capacity Rebalancing:

  • Following the capacity shifts in February, March is expected to show a mix of regional tightening and market stabilization due to inventory replenishment and infrastructure recovery projects.
  • Midwest and Northeast capacity remained strained due to continued winter weather disruptions and fluctuating demand cycles.
  • Southern regions experienced a slight increase in outbound freight, particularly for reefer loads tied to produce movements.

April Freight Market Outlook:

Transitional Period:

  • April is expected to solidify the seasonal demand increases observed in March, particularly in reefer and flatbed markets. in reefer and flatbed freight.
  • Capacity tightening is expected in key markets as Q2 approaches.

Reefer Stability & Expansion:

  • Produce season in California, Florida, and Mexico is gaining momentum, leading to early capacity shifts.
  • Easter-driven demand in dairy, protein, and confectionery markets will drive outbound reefer activity, particularly in the Midwest and Southeast.
  • Potential supply chain disruptions due to tariff-related sourcing shifts may affect freight flows.

Flatbed Growth Accelerates:

  • Infrastructure and commercial construction projects in regions like Houston, Atlanta, and Chicago are accelerating demand for steel, lumber, and industrial equipment moves.
  • Government infrastructure spending continues to drive higher project freight volume, keeping flatbed rates stable or rising.

Rate Movements & Market Expectations:

  • Tariffs and global trade tensions may cause rate fluctuations, particularly in cross-border lanes.
  • Intermodal and rail volumes on the West Coast could shift freight flows inland, affecting truckload capacity in key Midwest and East Coast hubs.
  • If demand does not pick up in Dry Van, rates may remain suppressed into early Q2.

Port Adjustments & Supply Chain Rebalancing:

  • West Coast remains the primary import hub, but tariff adjustments are causing some diversification in freight distribution.
  • Shippers are shifting some freight inland via intermodal, affecting drayage demand and regional truckload capacity in major intermodal hubs like Chicago, Memphis, and Dallas.

Transportation Events

Upcoming Holidays
Air Cargo Conference, March 2nd-4th, 2025

TMP25 – Trans-Pacific Maritime Conference, March 2nd – 5th, 2025

ProMat 2025, March 17th- 20th, 2025

Gartner Supply Chain Symposium/XPO, May 5th – 7th, 2025

Procurment & Supply Chain LIVE: Chicago, June 4th – 5th, 2025

 Easter Sunday, April 20th, 2025

Memorial Day, May 26th, 2025

BM2 NEWS

Your Bonded Freight Partner, BM2, specializes in bonded freight solutions, helping you defer tariffs and speed up customs clearance amid changing trade regulations (effective March 4). We move bonded shipments like auto parts, electronics, industrial goods, steel, and perishables across the U.S., Canada, and Mexico.

Why Choose BM2?

  • Expedited bonded drayage at key ports/airports
  • Customs expertise with 7512 documentation
  • Reliable cross-border transport network
  • Defer duties, avoid delays, and stay competitive

Recent News:

  • Managed 300+ shipments in 5 days, showcasing large-scale logistics expertise
  • Gold sponsor at NKU’s Spring Career Expo, supporting future logistics talent
  • Expanding beyond FTL to LTL, rail, drayage, and data-driven solutions in 2025

INDUSTRY NEWS TO KNOW

CargoNet | The cargo theft prevention and recovery network

State of Freight Today (ftrintel.com)

US ports by volume: How maritime cargo trends are stacking up | Supply Chain Dive

Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

Cargo Theft Surges to Record Levels as Holiday Season Approaches, Verisk CargoNet Analysis Shows | Verisk

Canada diesel prices, 24-Feb-2025 | GlobalPetrolPrices.com

Mexico diesel prices, 24-Feb-2025 | GlobalPetrolPrices.com

Truck Tonnage Index (TRUCKD11) | FRED | St. Louis Fed (stlouisfed.org)

All Employees, Truck Transportation (CES4348400001) | FRED | St. Louis Fed (stlouisfed.org)

Producer Price Index by Industry: Truck Trailer Manufacturing: Truck Trailers and Chassis, Axle Rating 10,000 Pounds or More (PCU3362123362121) | FRED | St. Louis Fed (stlouisfed.org)

E-Commerce Retail Sales (ECOMSA) | FRED | St. Louis Fed (stlouisfed.org)

United States LMI Logistics Managers Index (tradingeconomics.com)

The Cass freight index | FRED Blog (stlouisfed.org)

Farmer’s Report – Produce Prices & Market Trends | US Foods

Trump’s China tariffs trigger retaliation against U.S. farm products | Reuters

Exclusive: Honda to produce next Civic in Indiana, not Mexico, due to US tariffs, sources say | Reuters

Mexico will impose retaliatory tariffs on US goods | AP News

China Says It Will Retaliate Against Tariff Hike

Market Update February 2025

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Industry Market Trends

GENERAL MARKET TRENDS

Fuel Index:
  • Diesel National Averages:
    • This Week: $3.359/gallon
    • Last Week: $3.715/gallon
    • Weekly Change: $0.056
    • Year-over-Year Change:  $0.208

Summary: Diesel prices have dropped 5.6 cents week-over-week and are down 20.8 cents year-over-year, offering slight relief for carriers. The Midwest and Gulf Coast saw the largest declines, while the West Coast remains the most expensive region. However, upcoming tariffs on steel, aluminum, and electronics could drive fuel demand higher, with analysts forecasting a 5-10% diesel price increase if enacted. This would likely push up freight rates, particularly in long-haul and cross-border lanes, as shippers adjust sourcing strategies. While fuel prices remain lower than last year, ongoing geopolitical risks and supply chain shifts could lead to volatility in Q2 2025.

Reference: Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

RPM Monthly Movers:
  • National RPM Month-to-Month Changes:
    • Dry Van Markets (December – January) $0.05
    • Reefer Markets (December – January) $0.07
    • Flatbed Markets (December – January) $0.06

POTENTIAL MARKET DISRUPTORS

Seasonal Trends:

  • While post-holiday softening is typical in Q1, freight markets will gradually heat up by mid-Q2, especially in Reefer and Flatbed segments. Shippers should plan capacity ahead of peak surges, especially for perishables and construction-related freight.

Mexico Tariffs Delayed:

  • The proposed tariffs on imports from Mexico have been postponed by one month, delaying immediate cost impacts.
  • Businesses relying on cross-border trade should use this time to adjust procurement strategies and prepare for potential increases.
  • Freight Implications: Delays may cause a spike in volume next month as shippers attempt to move goods before tariffs take effect.

Winter Weather Disruptions Ongoing:

  • Severe storms in the Great Lakes and Northeast continue to disrupt freight flow, with delays on I-90, I-81, and I-94.
  • Southern California flooding has impacted I-5 and US-101, leading to temporary rerouting.
  • Freight Implications: Carriers should factor in transit time delays when planning shipments to and from affected areas.

Cargo Theft Risks:

  • High-value shipments (e.g., electronics, consumer goods) face heightened risks during winter delays.
  • Preventive Measures: Secure trailers with ISO-compliant seals, use GPS tracking, and avoid leaving freight unattended in high-theft areas.

MARKET PREDICTIONS

Capacity Trends:

  • Dry Van: Stable with inventory rebalancing; Q2 demand growth expected from CPG and e-commerce replenishment.
  • Reefer: Volatility persists—Valentine’s Day spikes floral shipments in February, Easter demand sustains volumes in March-April, and early produce seasons in CA, FL, and MX tighten capacity into Q2.
  • Flatbed: Demand rises March-June with infrastructure projects, residential construction, and industrial shipments driving volume in TX, Southeast, and Midwest corridors.

Rate Trends:

  • Dry Van: Gradual growth into Q2, supported by steady Midwest restocking and evolving consumer spending patterns.
  • Reefer: Seasonal surges drive fluctuations; rates tighten in Miami, LA, and key Midwest/Southeast markets.
  • Flatbed: Rising demand for steel, lumber, and construction materials will push rates higher in Houston, Atlanta, and Chicago.

Post-January Market:

  • Capacity Rebalancing:
    • After the brief easing of capacity in January, market conditions in February are expected to tighten slightly in response to restocking activity and infrastructure recovery projects, particularly in warmer regions.
    • Ongoing winter weather in the Midwest and Northeast may temporarily strain capacity, causing regional rate fluctuations.
  • Trade and Tariff Updates:
    • Tariffs on Key Goods: The proposed tariffs on steel, aluminum, electronics, and agriculture products, originally set to take effect this month, have been postponed by one month. While this provides temporary relief, businesses should remain prepared for potential cost increases if these tariffs are enacted in the coming months.
    • Impact on Freight: While the delay in tariff implementation provides a short-term buffer, increased costs for imported materials could still lead to higher domestic shipping volumes as companies adjust sourcing strategies.
  • March Freight Market Outlook:
    • Transitional Period: February serves as a bridge month between post-holiday softness and seasonal demand ramp-ups in March.
    • Reefer Volatility: Seasonal fluctuations persist, with produce seasons in California, Florida, and Mexico driving capacity shifts into Q2.
    • Flatbed Recovery: Capacity will tighten as construction projects gain momentum in warmer regions, particularly in Houston, Atlanta, and Chicago.
    • Potential Rate Volatility: Tariff discussions and geopolitical factors may create spot rate fluctuations if businesses accelerate freight movement ahead of policy changes.
    • Intermodal & Port Activity: The West Coast remains a key import hub, absorbing excess volume as businesses adjust logistics flows.

SEASONAL TRENDS AND CONSUMER DEMAND

Holiday and Produce Impacts:

  • Dry Van: Retail Inventory Rebalancing: Post-holiday shipments are winding down, with Q1 typically seeing a transition as inventory levels adjust from peak-season highs. Expect moderate demand for CPGs and durable goods, with inventory restocking occurring in major regional hubs; E-commerce & Distribution: While online shopping volumes decline post-holidays, warehouse replenishment remains steady, sustaining consistent dry van demand in urban fulfillment zones; Key Markets: Midwest (Chicago, Indianapolis), Southeast (Atlanta, Charlotte), Texas (Dallas, Houston)
  • Reefer: Valentine’s Day & Early Spring Produce: Flower shipments from Miami and Los Angeles peak in early February, driving short-term Reefer demand. Simultaneously, Mexico and Southwest U.S. produce seasons continue, increasing load volume for perishables such as strawberries, citrus, and leafy greens; Easter-Driven Perishable Demand: Reefer volumes will climb into March as eggs, dairy, candy, and specialty meats move ahead of the holiday;  Expect higher outbound rates from food processing hubs in the Midwest and Southeast; Key Markets: Florida (Miami, Orlando), California (Fresno, Los Angeles), Midwest (Chicago, St. Louis)
  • Flatbed: Construction Ramp-Up: Warmer regions such as Texas, Georgia, and the Midwest will see rising demand for steel, lumber, and construction materials as infrastructure projects resume; Manufacturing & Industrial Freight: Equipment and machinery moves are projected to increase in March, leading to more Flatbed loads from major industrial centers; Key Markets: Texas (Houston, Dallas, San Antonio), Midwest (Chicago, St. Louis), Southeast (Atlanta, Birmingham)

Record Cargo Theft in 2024

  • Cargo theft incidents surged 27% YoY, with over 3,625 reported thefts, the highest level on record.
  • High-Risk Areas: The largest spikes occurred in California (+33%) and Texas (+39%), particularly in Los Angeles, Dallas, and San Bernardino.
  • Targeted Goods: Criminals are increasingly targeting consumer electronics, copper products, and high-value food items (avocados, nuts, protein powders).
  • Freight Implications: Shippers and carriers should implement increased security measures, including GPS tracking, ISO-compliant trailer seals, and avoiding high-theft areas for parked freight.

Transportation Events

Upcoming Holidays
Manifest 2025: The Future of Logistics, February 10th – 12th, 2025

RILA Retail Supply Chain Conference, February 16th – 19th, 2025

Air Cargo Conference, March 2nd-4th, 2025

TMP25 – Trans-Pacific Maritime Conference, March 2nd – 5th, 2025

ProMat 2025, March 17th- 20th, 2025

Gartner Supply Chain Symposium/XPO, May 5th – 7th, 2025

Procurment & Supply Chain LIVE: Chicago, June 4th – 5th, 2025

 Valentine’s Day, February 14, 2025

President’s Day, February 17th, 2025

Easter Sunday, April 20th, 2025

Memorial Day, May 26th, 2025

BM2 NEWS

BM2 Freight successfully completed 451 drop trailer shipments in January, helping our customers avoid delays and keep their supply chains running smoothly despite severe winter weather challenges. By leveraging our drop trailer network, we provided flexible, efficient solutions when they were needed most. This is just another example of how BM2 anticipates challenges, adapts, and delivers for our customers, no matter the conditions.

BM2’s commitment to our customers runs deep. In January, we absorbed $90K in losses across 300+ shipments to ensure our contracted lanes were covered, despite massive market rate increases caused by severe winter weather. When others shy away from losses or give freight back, BM2 steps up and delivers. Keeping our promises isn’t just a priority, it’s who we are.

 

INDUSTRY NEWS TO KNOW

CargoNet | The cargo theft prevention and recovery network

State of Freight Today (ftrintel.com)

US ports by volume: How maritime cargo trends are stacking up | Supply Chain Dive

Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

CargoNet | The cargo theft prevention and recovery network

Cargo Theft Surges to Record Levels as Holiday Season Approaches, Verisk CargoNet Analysis Shows | Verisk

Exclusive | Holiday heist diverts $1M in toys on 3 different trucks in new type of scam

Canada diesel prices, 23-Dec-2024 | GlobalPetrolPrices.com

Truck Tonnage Index (TRUCKD11) | FRED | St. Louis Fed (stlouisfed.org)

All Employees, Truck Transportation (CES4348400001) | FRED | St. Louis Fed (stlouisfed.org)

Producer Price Index by Industry: Truck Trailer Manufacturing: Truck Trailers and Chassis, Axle Rating 10,000 Pounds or More (PCU3362123362121) | FRED | St. Louis Fed (stlouisfed.org)

E-Commerce Retail Sales (ECOMSA) | FRED | St. Louis Fed (stlouisfed.org)

United States LMI Logistics Managers Index (tradingeconomics.com)

The Cass freight index | FRED Blog (stlouisfed.org)

United States Building Permits

Worldwide Retail Ecommerce Forecast 2024 Midyear Update (emarketer.com)

Farmer’s Report – Produce Prices & Market Trends | US Foods

US_2024.pdf (usda.gov)
2024 Supply Chain Risk Trends Analysis | CargoNet

Market Update January 2025

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Industry Market Trends

GENERAL MARKET TRENDS

Fuel Index:
  • Diesel National Averages:
    • This Week: $3.503/gallon
    • Last Week: $3.476/gallon
    • Weekly Change: $0.027
    • Year-over-Year Change:  $0.373

Summary: Diesel prices have increased by $0.027 per gallon compared to the previous week, reflecting fluctuations in crude oil prices and seasonal demand variations. However, there is a year-over-year decrease of $0.373 per gallon, indicating a downward trend over the past year.

Looking ahead, potential Q1 2025 tariff implementations could drive a pull-forward of imports, placing pressure on logistics costs and diesel demand. Analysts forecast a 5-10% increase in diesel prices if tariffs are enacted, likely creating inflationary pressures across the supply chain. However, any potential domestic energy policy changes, such as expanding refining or drilling, may stabilize or slightly reduce costs mid-year.

Reference: Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

RPM Monthly Movers:
  • National RPM Month-to-Month Changes:
    • Dry Van Markets (November – December) $0.08
    • Reefer Markets (November – December) $0.00
    • Flatbed Markets (November – December) $0.02

POTENTIAL MARKET DISRUPTORS

Seasonal Trends:

  • Post-Holiday Freight Volumes: Easing nationally, but Midwest and Northeast restocking lanes remain active.
  • Produce Season: Reefer demand continues in the Southwest and Mexico, with frost risks driving volatility.

Ongoing West Coast Surge:

  • Volume Trends: West Coast ports, including Los Angeles and Seattle, are experiencing elevated activity, with volume increases of 15-20% noted due to a combination of holiday imports and labor disruptions on the East and Gulf Coasts.
  • Shipper Reactions: The impending ILA strike deadline (January 15, 2025) at East Coast ports has led many shippers to divert freight to West Coast routes.
  • Inland Impacts: This redirection is creating pressure on inland infrastructure, especially intermodal hubs, as rail and truck networks absorb the increased volumes.

 ILA Strikes:

  • Labor disruptions at Gulf and East Coast ports may lead to significant delays and rerouting to alternate ports.
  • Expect regional rate surges for Dry Van and Rail services as shippers adjust routing strategies.

Cargo Theft Risks:

  • High-value shipments (e.g., electronics, consumer goods) face heightened risks during winter delays.
  • Preventive Measures: Secure trailers with ISO-compliant seals, use GPS tracking, and avoid leaving freight unattended in high-theft areas.

MARKET PREDICTIONS

Capacity Trends:

  • Dry Van: Overcapacity persists but will rebalance by late 2025, with Midwest lanes tightening earlier.
  • Reefer: Seasonal tightness in Southwest and border lanes will dominate Q1.
  • Flatbed: Steady with localized demand in Gulf recovery regions, rebounding in Q2 with infrastructure projects.

Rate Trends:

  • Dry Van: Gradual growth in Q1, supported by Midwest restocking and retail demand.
  • Reefer: Year-over-Year growth of +12% by Q3, driven by produce and pharmaceutical shipments.
  • Flatbed: Stable through Q1, with modest increases in Q2 tied to infrastructure projects.

Post-January Market:

  • Capacity Rebalancing:
    • After the brief easing of capacity in January, market conditions in February are expected to tighten slightly in response to restocking activity and infrastructure recovery projects, particularly in warmer regions.
    • Ongoing winter weather in the Midwest and Northeast may temporarily strain capacity, causing regional rate fluctuations.
  • Tariff Implementation Impact:
    • If new tariffs take effect in Q1 2025, a surge of imports from Asia could continue into February, maintaining elevated activity at West Coast ports.
    • This pull-forward of freight may lead to congestion in intermodal and rail networks, particularly at inland hubs such as Chicago and Dallas.
  • Reefer and Dry Van Demand:
    • Reefer: Winter produce seasons in the Southwest and Mexico will sustain demand through February, with slight increases anticipated for seasonal produce exports.
    • Dry Van: Moderate demand will persist due to late restocking and shifts in supply chain patterns caused by port diversions.
  • Outlook for February:
    • February will reflect a transitionary period with continued volatility driven by geopolitical and tariff-related uncertainties. Reefer and Dry Van markets may see demand normalization by late February, while Flatbed rates are expected to begin recovering as infrastructure projects pick up momentum in warmer regions. The conclusion of holiday demand will bring a short-lived easing of capacity in January. However, the potential implementation of new tariffs in Q1 2025 may drive a pull-forward of imports, creating near-term volatility. Reefer and Dry Van demand may also see incremental boosts from post-holiday restocking activity.

SEASONAL TRENDS AND CONSUMER DEMAND

Holiday and Produce Impacts:

    • Dry Van: Active in Midwest and Northeast lanes for post-holiday restocking.
    • Reefer: Dominated by cross-border produce shipments and seasonal greens, with frost risks impacting capacity.
    • Flatbed: Declines outside of warm regions, but demand rebounds with infrastructure project launches.

TLDR: Seasonal Trends

  • Van Shipments:
    • Rates rose during the holiday season due to weather disruptions and demand peaks.
    • A slight dip in January is expected, followed by a potential rebound in February tied to restocking and tariff-driven imports.
  • Reefer Shipments:
    • Rates remain elevated, driven by strong produce demand and weather-driven capacity constraints.
    • Expect tight capacity and high rates to persist through early 2025, supported by Southwest and Mexico produce seasons.
  • Flatbed Shipments:
    • Rates declined seasonally but remain supported by Gulf Coast and Coastal Appalachia recovery projects.
    • Capacity is steady, with demand expected to recover in Q2 as infrastructure projects increase.

Transportation Events

Upcoming Holidays
SMC3 JumpStart, January 27th – 29th, 2025

Manifest 2025: The Future of Logistics, February 10th – 12th, 2025

RILA Retail Supply Chain Conference, February 16th – 19th, 2025

Air Cargo Conference, March 2nd-4th, 2025

TMP25 – Trans-Pacific Maritime Conference, March 2nd – 5th, 2025

ProMat 2025, March 17th- 20th, 2025

Gartner Supply Chain Symposium/XPO, May 5th – 7th, 2025

Procurment & Supply Chain LIVE: Chicago, June 4th – 5th, 2025

 Martin Luther King Jr. Day, January 20th, 2025

Chinese New Year, January 27th – February 2nd, 2025

President’s Day, February 17th, 2025

Easter Sunday, April 20th, 2025

Memorial Day, May 26th, 2025

BM2 NEWS

BM2 is proud to support meaningful causes through charitable contributions. Recently, we made a donation to Welcome House Inc., an organization committed to ending homelessness and helping individuals regain stability. We are grateful for the opportunity to contribute to such a remarkable mission.

BM2 would like to take a moment to express our heartfelt gratitude to our incredible customers and carriers. Your trust and partnership are the driving forces behind our success. As we celebrate this season of giving, we want to wish you and your loved ones a joyful and memorable holiday season. Thank you for being an essential part of the BM2 family!

DID YOU KNOW?

BM2 moved about 10,000 food and beverage shipments in 2024 (9752 to be exact)!

INDUSTRY NEWS TO KNOW

CargoNet | The cargo theft prevention and recovery network

State of Freight Today (ftrintel.com)

US ports by volume: How maritime cargo trends are stacking up | Supply Chain Dive

Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

CargoNet | The cargo theft prevention and recovery network

Cargo Theft Surges to Record Levels as Holiday Season Approaches, Verisk CargoNet Analysis Shows | Verisk

Exclusive | Holiday heist diverts $1M in toys on 3 different trucks in new type of scam

Canada diesel prices, 23-Dec-2024 | GlobalPetrolPrices.com

Truck Tonnage Index (TRUCKD11) | FRED | St. Louis Fed (stlouisfed.org)

All Employees, Truck Transportation (CES4348400001) | FRED | St. Louis Fed (stlouisfed.org)

Producer Price Index by Industry: Truck Trailer Manufacturing: Truck Trailers and Chassis, Axle Rating 10,000 Pounds or More (PCU3362123362121) | FRED | St. Louis Fed (stlouisfed.org)

E-Commerce Retail Sales (ECOMSA) | FRED | St. Louis Fed (stlouisfed.org)

United States LMI Logistics Managers Index (tradingeconomics.com)

The Cass freight index | FRED Blog (stlouisfed.org)

United States Building Permits

Worldwide Retail Ecommerce Forecast 2024 Midyear Update (emarketer.com)

Farmer’s Report – Produce Prices & Market Trends | US Foods

US_2024.pdf (usda.gov)

Market Update December 2024

/in

Industry Market Trends

GENERAL MARKET TRENDS

Fuel Index:

  • Diesel National Averages:
    • This Week: $3.539/gallon
    • Last Week: $3.491/gallon
    • Weekly Change: $0.048
    • Year-over-Year Change:  $0.607

Summary: Diesel prices have experienced a modest increase week-over-week, influenced by seasonal demand, refinery capacity issues, and geopolitical developments. Despite lower prices compared to last year, the upcoming administration’s tariff proposals on imports could elevate fuel costs further in Q1 2025. Analysts estimate a potential 5-10% increase in diesel prices should tariffs be implemented, driving inflationary pressures across the supply chain. However, a potential shift in domestic energy policies, such as the expansion of refining and drilling, may stabilize or lower costs in the medium term, as seen during the previous Trump administration.

Reference: Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

RPM Monthly Movers:
  • National RPM Month-to-Month Changes:
    • Dry Van Markets (October – November) $0.08
    • Reefer Markets (October – November) $0.05
    • Flatbed Markets (October – November) $0.04

POTENTIAL MARKET DISRUPTORS

  • Seasonal Trends: Seasonal demand has created surges in freight movement, particularly in Dry Van and Reefer equipment. E-commerce and holiday retail freight are leading the charge, with volumes peaking on high-demand lanes in the Midwest and Northeast. Reefer equipment remains under pressure as holiday perishables such as produce, meat, and floral shipments increase. This seasonal spike is expected to persist through mid-December, with inventory replenishments extending into early January.
  • Construction and Recovery Projects: While the construction market has seen typical seasonal slowdowns, recovery projects tied to recent Gulf Coast storms are sustaining flatbed demand in southern markets. Warm-weather regions, particularly in Texas, Gulf Coast and coastal Appalachia, are seeing consistent demand for building materials and heavy equipment shipments. This activity contrasts with northern regions, where weather conditions and reduced project timelines are curbing flatbed demand.
  • Port Operations: Ongoing West Coast Surge – West Coast ports are experiencing elevated activity due to holiday imports and shifts away from East and Gulf Coast labor disruptions. Volume increases of 15-20% have been noted at key hubs like Los Angeles and Seattle. The ongoing labor uncertainty at East Coast ports, particularly with the looming ILA strike deadline on January 15, 2025, has pushed shippers to rely more heavily on West Coast routes. Inland infrastructure is also under pressure as freight is redistributed to mitigate potential delays.

MARKET PREDICTIONS

  • Capacity Trends: Tight capacity persists in Dry Van and Reefer markets, driven by holiday demand surges and seasonal weather disruptions. Flatbed capacity remains regionally balanced, with tightness observed in Gulf Coast areas due to recovery projects, while northern regions see easing availability amid construction slowdowns. Weather-related delays, particularly in the Midwest and West Coast, are expected to exacerbate capacity constraints on key freight corridors.
  • Rate Trends: Dry Van: spot rates are up +3.8% month-over-month, driven by peak holiday e-commerce and retail activity. Reefer: spot rates show a modest increase of +0.4% month-over-month, bolstered by perishable goods shipments tied to holiday demand. Flatbed: rates have softened by -0.4% month-over-month, reflecting reduced construction activity outside of storm recovery regions in the Gulf Coast.
  • Post-December Market: The conclusion of holiday demand will bring a short-lived easing of capacity in January. However, the potential implementation of new tariffs in Q1 2025 may drive a pull-forward of imports, creating near-term volatility. Reefer and Dry Van demand may also see incremental boosts from post-holiday restocking activity.

SEASONAL TRENDS AND CONSUMER DEMAND

  • Holiday Shopping: The holiday season is driving heightened demand for Dry Van and Reefer equipment as retailers and e-commerce platforms push to meet peak season delivery schedules. Seasonal surcharges are common on key lanes, particularly in the Midwest, Northeast, and California. Reefer demand is also surging for perishable freight such as produce, dairy, and meat, with tight capacity causing delays on key Southeast and Midwest corridors.
  • Produce Season Impact: Reefer markets are seeing elevated demand in port-adjacent regions like Texas and California, where domestic and imported produce moves through distribution networks. Frost risks in the Southeast are also contributing to localized disruptions, making reefer availability critical for time-sensitive shipments.
  • Construction and Flatbed Demand: In Flatbed markets are seeing typical seasonal slowdowns in northern regions as weather conditions curb construction activity. However, Gulf Coast and Coastal Appalachia recovery efforts are creating sustained demand for building materials and equipment, balancing regional demand disparities.

TLDR: Seasonal Trends

  • Van Shipments: Rates are up due to holiday and weather disruptions. Expect tight capacity and higher rates through December, with a slight post-holiday dip before a potential rebound in early 2025..
  • Reefer Shipments: Rates remain elevated due to strong holiday demand and weather-driven disruptions. Expect capacity constraints to persist, with rates staying high through early 2025
  • Flatbed Shipments: Rates show seasonal declines, but Gulf Coast and Coastal Appalachia recovery efforts maintain regional demand. Capacity remains steady with typical winter trends through early 2025.

Transportation Events

Upcoming Holidays
Gartner Supply Chain Planning Summit, December 3rd – 4th, 2024

Manifest 2025: The Future of Logistics, February 10th – 12th, 2025

Air Cargo Conference, March 2nd-4th, 2025

ProMat 2025, March 17th- 20th, 2025

 Black Friday & Cyber Monday, Friday, November 29th, Monday, December 2nd

Christmas, Wednesday December 25th, 2024

Hannukah, Wednesday Night, December 25th through Thursday night, January 2nd

Kwanzaa, Thursday, December 26th through Wednesday, January 1st

New Years, Tuesday night, December 31st through Wednesday, January 1st

BM2 NEWS

BM2 is excited to announce that we now offer rail and intermodal shipment services to our clients. As part of our ongoing commitment to growth and strengthening strategic partnerships, we’ve expanded into intermodal transportation. This allows us to deliver the same exceptional service our customers rely on, now across a broader range of logistics solutions.

BM2 is thrilled to welcome 11 new customers to our growing network! We’re dedicated to delivering exceptional service and tailored solutions to meet their unique needs. As we continue to expand, we’re not only enhancing our service offerings but also strengthening our commitment to excellence in every partnership.

BM2 has been successfully developing large-scale drop trailer programs designed to reduce costs by eliminating lengthy loading times, detention, and additional accessorial charges. Drop trailer programs are one of our core specialties, and we take pride in partnering with customers and shippers to design and implement these efficient, cost-saving solutions. We have successfully coordinated over 3,000 drop trailer movements this year and are expecting to grow these programs into 2025!

Cargo Theft

October 2024 saw high cargo theft activity in key hotspots like Southern California, Fort Worth/Dallas, Chicago, and Memphis. Electronics were the top target, with California alone accounting for 60% of incidents, followed by Arizona and Texas at 15% each. Theft methods were dominated by pilferage (52%) and full truckload theft (27%), while facility theft rose slightly in areas like SOCAL and Dallas. Sundays and the midnight-to-noon timeframe saw the highest theft spikes.

Looking ahead to December, theft risks will escalate as holiday volumes peak. Electronics, consumer goods, and parcels will remain key targets, with hotspots like SOCAL, Texas, and the Midwest staying active. Criminals are expected to exploit extended holiday breaks, targeting shipments left in unsecured areas. Into early 2025, theft may dip post-holidays, but high-value freight like electronics will remain at risk. Weather-related delays could create new opportunities for theft, particularly in northern states. Organized rings will likely continue targeting major freight hubs, making robust security measures essential.

To mitigate risks, secure trailers with ISO-compliant seals and GPS tracking, avoid leaving freight unattended, and partner with carriers prioritizing security.

DID YOU KNOW

Did you know over the last 3 years BM2 has successfully shipped over 7,000 high-value shipments? BM2 prides itself on going the extra mile to ensure the highest level of security, reliability, and care for each shipment. Our team is dedicated to protecting your valuable cargo with rigorous tracking, specialized handling, and robust risk management, giving you peace of mind that your high-value goods are in trusted hands every step of the way.

INDUSTRY NEWS TO KNOW

CargoNet | The cargo theft prevention and recovery network

State of Freight Today (ftrintel.com)

US ports by volume: How maritime cargo trends are stacking up | Supply Chain Dive

Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

Canada diesel prices, 21-Oct-2024 | GlobalPetrolPrices.com

Truck Tonnage Index (TRUCKD11) | FRED | St. Louis Fed (stlouisfed.org)

All Employees, Truck Transportation (CES4348400001) | FRED | St. Louis Fed (stlouisfed.org)

Producer Price Index by Industry: Truck Trailer Manufacturing: Truck Trailers and Chassis, Axle Rating 10,000 Pounds or More (PCU3362123362121) | FRED | St. Louis Fed (stlouisfed.org)

E-Commerce Retail Sales (ECOMSA) | FRED | St. Louis Fed (stlouisfed.org)

United States LMI Logistics Managers Index (tradingeconomics.com)

The Cass freight index | FRED Blog (stlouisfed.org)

Construction Market Trends for August 2024 – Building Permit Data

Worldwide Retail Ecommerce Forecast 2024 Midyear Update (emarketer.com)

Farmer’s Report – Produce Prices & Market Trends | US Foods

US_2024.pdf (usda.gov)

Market Update November 2024

/in

Industry Market Trends

GENERAL MARKET TRENDS

Fuel Index:

  • Diesel National Averages:
    • This Week: $3.573/gallon
    • Last Week: $3.553/gallon
    • Weekly Change: $0.02
    • Year-over-Year Change:  $0.881

Summary: Diesel prices have seen a slight increase this week but remain below year-over-year levels, providing some relief in overall transportation costs. The slight weekly rise is attributed to ongoing refinery maintenance and fluctuating crude oil prices.

Reference: Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

RPM Monthly Movers:
  • National RPM Month-to-Month Changes:
    • Dry Van Markets (September – October) $0.05
    • Reefer Markets (September – October) $0.01
    • Flatbed Markets (September – October) $0.03

POTENTIAL MARKET DISRUPTORS

  • Seasonal Trends: Seasonal demand is rising on East Coast-to-Midwest and East Texas outbound lanes, also, the West Coast, particularly near major ports like Los Angeles and Long Beach, is seeing a spike in volumes due to increased produce imports. This West Coast activity has led to higher outbound rates, especially as shipments support holiday restocking needs for East Coast retail hubs. Overall, the holiday retail cycle and agricultural shipments are likely to keep demand high on East Coast and Midwest lanes. Meanwhile, localized rate increases and capacity constraints on the West Coast are tied to port-specific produce imports, marking a departure from broader national trends.
  • Construction and Recovery Projects: Continued infrastructure work in the Southeast, Texas, and parts of the Midwest is driving robust demand for flatbed capacity. Recovery projects, especially in areas impacted by recent storms, are also contributing to demand in Southern regions. Projects include highway expansions, commercial developments, and hurricane-related repairs that sustain higher-than-average demand in these lanes.
  • Port Operations: West Coast Surge – West Coast ports, particularly Los Angeles and Long Beach, are experiencing a notable increase in produce imports, driven by fresh fruit shipments from countries like New Zealand, Chile, and Peru. This trend aligns with USDA forecasts projecting an uptick in U.S. agricultural imports for 2024. In response, ports have boosted cold storage and reefer plug capacity, but the increased demand occasionally strains reefer capacity in areas near these ports. For shippers using West Coast lanes—especially those distributing goods inland—this may mean localized rate adjustments or reefer availability constraints. Despite these pressures, national reefer rates remain broadly stable, with cost increases limited to high-volume port areas.

MARKET PREDICTIONS

  • Capacity Trends: Capacity is generally tightening on major holiday lanes from the East Coast to Midwest and East Texas. West Coast lanes are holding stable, though continued demand in dry and produce import sustains localized pressures near port areas. Overall, national capacity remains balanced with peak season volumes expected on holiday lanes through November​.
  • Rate Trends: Dry Van: Rates are expected to rise by 3-5% on high-demand lanes from East Coast to Midwest. Reefer: While rates remain broadly stable, slight increases are anticipated near ports due to the high volume of imported produce and seasonal demand for the holidays, along with shipments that need to be protected from freeze that would normally take up dry van capacity. Flatbed: Expected to decline in the northern regions due to winter’s impact on construction, while rates in the Southeast remain steady.
  • Post-November Market: The post-November period is expected to bring temporary relief in capacity, especially on primary holiday lanes. However, regional factors—like continued produce imports, recovery projects, and January restocking—are anticipated to sustain isolated demand spikes. Shippers should prepare for a fluctuating market, with anticipated rate adjustments heading into early 2025.

SEASONAL TRENDS AND CONSUMER DEMAND

  • Holiday Shopping: The holiday season brings heightened freight demand across segments, particularly for dry van and e-commerce-driven lanes as retailers and online platforms work to meet increased consumer spending. This spike, especially pronounced on East Coast to Midwest lanes, is expected to sustain high rates through December. Seasonal produce imports like citrus and avocados are driving reefer demand near West Coast and Gulf ports, adding isolated rate pressures in port-proximate areas but with minimal national impact. Flatbed demand remains steady in warmer regions like the Southeast and Texas, supporting construction and ongoing recovery projects, while winter slows projects in colder areas. Shippers should plan for potential peak surcharges, particularly for e-commerce and reefer capacity near ports.
  • Produce Season Impact: Domestic produce demand is on the decline, with steady interest primarily in winter crops like Florida citrus. However, rising imported produce volumes on the West and Gulf Coasts—particularly near ports like Los Angeles and Houston—are tightening reefer capacity in those areas. As a result, shippers near these key ports may experience slight capacity constraints, though national reefer rates remain largely unaffected.
  • Construction and Flatbed Demand: In warmer regions like the Southeast and Texas, flatbed demand is expected to remain steady due to ongoing construction and recovery projects, while colder regions will likely see a seasonal dip. This shift could free up some flatbed capacity, redistributing it to areas with consistent demand and helping balance regional constraints. Additionally, recovery projects focused on hurricane damage repairs and infrastructure recovery are likely to sustain flatbed demand in Southern and coastal areas, even as the broader national market cools.

TLDR: Seasonal Trends

  • Van Shipments: Holiday demand drives van shipments high on East Coast to Midwest lanes, with continued high demand on West Coast-to-inland routes due to sustained import volumes.
  • Reefer Shipments: Demand is regionally driven, and less robust overall as domestic produce continues to wind down. Key agricultural markets, as well as West Coast ports and the Southeast, continue to experience tight capacity. However, overall reefer volumes are softening. Rate volatility is expected to persist throughout Q4.
  • Flatbed Shipments: Southeast demand remains strong due to construction, with some easing in northern regions as winter impacts projects.

Transportation Events

Upcoming Holidays
Gartner Supply Chain Planning Summit, Dec 3rd – 4th, 2024

Manifest 2025: The Future of Logistics, Feb 10th – 12th, 2025

Air Cargo Conference March 2nd-4th, 2025

ProMat 2025, March 17th- 20th, 2025

 Veterans Day, Nov 11th, 2024

Thanksgiving Day, Nov 28th, 2024

Black Friday & Cyber Monday, Friday, Nov 29th, Monday, Dec 2nd

Christmas, Dec 25th, 2024

BM2 NEWS

BM2’s very own Snr. Operations Support Manager, Carla Bay was named a recipient of the 2024 women in supply chain award – workforce innovator category!

BM2 is proud to maintain and strengthen our valued partnership with E2open clients. With over 15 E2open customers currently supported, we are excited to continue expanding our services and building on this successful collaboration.

BM2 has been steadfast in supporting communities affected by Hurricanes Helene and Milton. By addressing critical transportation challenges, we have played a key role in streamlining relief efforts and ensuring essential goods reach those in need. Our commitment to solving these logistical issues remains unwavering, as we continue to work closely with partners and agencies to facilitate recovery and rebuild impacted areas.

DID YOU KNOW

Since Hurricane Helene made landfall on September 26, 2024, BM2 has successfully delivered 418 critical shipments to the hardest-hit areas, including Florida, Georgia, South Carolina, and North Carolina. These efforts have been instrumental in ensuring that essential supplies reached those in need quickly and efficiently, helping communities recover and rebuild in the aftermath of the storm. BM2 remains committed to providing continued support and solutions as recovery progresses in these impacted regions.

INDUSTRY NEWS TO KNOW

CargoNet | The cargo theft prevention and recovery network

State of Freight Today (ftrintel.com)

US ports by volume: How maritime cargo trends are stacking up | Supply Chain Dive

Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

Canada diesel prices, 21-Oct-2024 | GlobalPetrolPrices.com

Truck Tonnage Index (TRUCKD11) | FRED | St. Louis Fed (stlouisfed.org)

All Employees, Truck Transportation (CES4348400001) | FRED | St. Louis Fed (stlouisfed.org)

Producer Price Index by Industry: Truck Trailer Manufacturing: Truck Trailers and Chassis, Axle Rating 10,000 Pounds or More (PCU3362123362121) | FRED | St. Louis Fed (stlouisfed.org)

E-Commerce Retail Sales (ECOMSA) | FRED | St. Louis Fed (stlouisfed.org)

United States LMI Logistics Managers Index (tradingeconomics.com)

The Cass freight index | FRED Blog (stlouisfed.org)

Construction Market Trends for August 2024 – Building Permit Data

Worldwide Retail Ecommerce Forecast 2024 Midyear Update (emarketer.com)

Farmer’s Report – Produce Prices & Market Trends | US Foods

US_2024.pdf (usda.gov)

Market Update October 2024

/in

Industry Market Trends

GENERAL MARKET TRENDS

Fuel Index:

  • Diesel National Averages:
    • This Week: $3.539/gallon
    • Last Week: $3.526/gallon
    • Weekly Change: $0.013
    • Year-over-Year Change:  $1.047

Summary: Diesel prices have seen a slight increase this week but remain below year-over-year levels, providing some relief in overall transportation costs. The slight weekly rise is attributed to ongoing refinery maintenance and fluctuating crude oil prices.

Reference: Gasoline and Diesel Fuel Update – U.S. Energy Information Administration (EIA)

RPM Monthly Movers:
  • National RPM Month-to-Month Changes:
    • Dry Van Markets (August- Sept.) $0.03
    • Reefer Markets (August- Sept.) $0.03
    • Flatbed Markets (August- Sept.) $0.01

POTENTIAL MARKET DISRUPTORS

  • Seasonal Trends: The shift from back-to-school to holiday season preparations is expected to tighten capacity in van markets. Reefer demand, while showing slight easing in some areas, remains high due to ongoing agricultural activity, especially in California and the Pacific Northwest. Construction is maintaining flatbed demand but will likely see a decline in northern regions as winter approaches.
  • Construction Projects: Continued high demand for flatbed equipment in southern U.S. regions due to ongoing infrastructure projects. However, construction activity in northern states is expected to slow down as colder weather sets in, impacting flatbed capacity and rates.
  • Port Operations: East Coast ports face potential disruptions due to looming labor strikes, which could worsen congestion and affect freight flows. High import volumes continue to strain capacity, particularly in major hubs like Savannah and New York.

MARKET PREDICTIONS

  • Capacity Trends: Tightening is expected for van and reefer markets as holiday retail demand increases. Reefer capacity shows regional tightness in agricultural hubs but is slightly easing overall. Flatbed capacity is gradually loosening due to reduced construction activity in colder northern markets.
  • Rate Trends: Van rates are likely to rise modestly as holiday demand peaks. Reefer rates will remain volatile, with specific increases in agricultural lanes, particularly in California. Flatbed rates are expected to soften as construction slows but remain stable in areas with ongoing projects.
  • Post-October Market: As we move into Q4, market volatility will continue, driven by retail freight movements and potential disruptions from labor issues at ports and ongoing geopolitical tensions. The logistics landscape will remain complex, requiring strategic planning to navigate capacity constraints and fluctuating rates.

SEASONAL TRENDS AND CONSUMER DEMAND

  • Holiday Shopping: The focus is shifting from back-to-school to holiday shopping, increasing Van demand in major retail hubs such as Los Angeles, Chicago, and Dallas. Reefer demand remains strong in agricultural regions like the Central Valley in California, the Southeast and the Rio Grande Valley in Texas, but there are signs of easing as some harvests conclude. Expect tight capacity in key markets like Los Angeles, Dallas, and Chicago due to heightened retail logistics needs. Agricultural regions like California’s Central Valley will continue to experience tight Reefer capacity due to ongoing produce shipments, though some relief may be seen as the Midwest harvest season winds down.
  • Produce Season Impact: Reefer demand remains strong but shows signs of softening in some areas as harvest seasons end. Key commodities such as grapes, tomatoes, and strawberries continue to drive capacity constraints and higher rates, particularly in California’s Central Valley, Florida, and Texas. The Midwest is seeing a reduction in demand as its produce season tapers off. Shippers should be prepared for tight capacity and elevated rates in key agricultural hubs like California’s Central Valley and the Rio Grande Valley in Texas. However, there may be some easing of Reefer demand in the Midwest and Northern Plains regions as harvests conclude.
  • Construction and Flatbed Demand: Ongoing construction projects continue to support Flatbed demand, especially in Southern states like Texas and Florida. However, in colder Northern regions, such as the Midwest and Northeast, construction-related freight is likely to decline as temperatures drop, leading to loosening capacity and softening rates. Businesses relying on Flatbed equipment should anticipate tight capacity and steady rates in Southern markets, while Northern states like Ohio, Michigan, and Pennsylvania may see loosening capacity and decreasing rates as winter weather sets in.

TLDR: Seasonal Trends

  • Van Shipments: Anticipate demand fluctuations with a slight dip after back-to-school but an upswing as holiday shipping ramps up. Capacity may tighten approaching key retail deadlines.
  • Reefer Shipments: Demand is regionally driven and less robust overall. Key agricultural markets maintain tight capacity but broader reefer volumes are softening. Expect volatility in rates through Q4.
  • Flatbed Shipments: Ongoing demand in southern construction zones will taper off in colder regions. Rates expected to remain stable with potential softening as winter approaches.

Transportation Events

Upcoming Holidays
  • CSCMP Edge Conference, Sept 29th – Oct. 2nd, 2024, Our team will be there, don’t miss us! 
  • E2 Open Connect 2024, Oct. 1st– Oct. 4th, 2024, Our team will be there, don’t miss us! 
  • Performance Food Group Conference, Oct. 1st– Oct. 4th, 2024, Our team will be there, don’t miss us! 
  • Reyes Logistics Carrier Conference, Oct. 14th– Oct. 15th, 2024, Our team will be there, don’t miss us! 
  • Gartner Supply Chain Planning Summit, Dec 3rd – 4th, 2024
  • Manifest 2025: The Future of Logistics, Feb 10th – 12th, 2025
  • Air Cargo Conference March 2nd-4th, 2025
  • ProMat 2025, March 17th- 20th, 2025
  • Columbus Day/Indigenous Peoples’ Day, Oct 14th, 2024
  • Halloween, Thursday, Oct 31st, 2024
  • Veterans Day, Nov 11th, 2024
  • Thanksgiving Day, Novr 28th, 2024
  • Black Friday & Cyber Monday, Friday, Nov 29th, Monday, Dec 2nd
  • Christmas, Dec 25th, 2024

BM2 NEWS

  • BM2 Freight Services is at the forefront of reducing fraud, theft, and claims for our customers, boasting an industry-leading claims rate of less than 0.14%. When you ship with BM2, you can be confident that your freight is protected every step of the way.
  • In September, BM2 proudly welcomed six new customers to our network! We are grateful for the opportunity to serve and are committed to building lasting, trust-driven relationships with our new partners.
  • BM2 expertly manages a balanced mix of contracted and spot shipments, maintaining an ideal 50/50 split. This strategic blend allows us to swiftly respond to market changes, provide reliable capacity through contracted lanes, and offer seamless coverage for last-minute shipments—all while enhancing operational efficiency.

DID YOU KNOW

  • At BM2 Freight, 18% of our spot shipments are tendered to us the same day, showcasing our expertise in handling urgent shipments promptly. When time is of the essence, trust BM2 Freight to swiftly get a truck to the shipper and reliably move your goods to their destination.

INDUSTRY NEWS TO KNOW

Market Update September 2024

/in

Industry Market Trends

GENERAL MARKET TRENDS

POTENTIAL MARKET DISRUPTORS

Current Market:
  • Agricultural and Seasonal Trends: As we move into September, the Midwest is expected to continue experiencing high demand for freight services, driven by ongoing agricultural shipments. The harvest season for key crops like corn and soybeans will be in full swing, maintaining tight capacity and elevated spot rates for Reefer and Dry Van equipment. The record yields observed in August are anticipated to extend into September, sustaining this trend. The increased export demands that began in late summer will likely persist, keeping rates high and capacity tight.
  • Back-to-School Freight Demand: The demand for Dry Van equipment is expected to slightly ease in early September as the back-to-school rush winds down. However, this temporary relief may be short-lived as retailers begin preparing for the upcoming holiday shopping season. The high inventory levels noted in August will influence September’s freight dynamics, with retailers aiming to restock and reposition goods in anticipation of increased consumer spending.
  • Construction Projects: September typically marks a high point for construction activities, particularly in Texas and California. The demand for Flatbed equipment will likely remain strong as major infrastructure and development projects continue. Data from August, showing a significant increase in construction permits, indicates that this trend will continue, with high Flatbed demand and increased competition for available capacity.
  • Port Operations: The East Coast ports, especially Savannah, are expected to face ongoing congestion in September due to rerouted shipments from the West Coast. Although the improvements at West Coast ports have alleviated some pressure, the continued high volume at East Coast ports will likely keep delays and capacity challenges in play. August’s 25% increase in container volumes at these ports suggests that shippers should prepare for sustained congestion and plan accordingly.
Market Predictions:
  • Capacity Trends: As we move into September and the upcoming Q4 2024, we anticipate a gradual tightening of capacity across all equipment types, including Dry Van, Reefer, and Flatbed. This is due to increased retail demand driven by holiday preparations, ongoing agricultural activities, and construction projects. The post-summer peak in shipping volumes typically eases slightly, but the buildup to the holiday season will soon reverse this trend, particularly impacting major distribution hubs and urban areas.
  • Rate Trends: Spot rates are expected to begin rising steadily as we approach the peak holiday shipping season. Historical trends show that demand increases for Van equipment, particularly for moving consumer goods, will lead to rate hikes. Seasonal agricultural shipments and continued construction activities will maintain pressure on Reefer and Flatbed rates in select regions.
  • Post-September Market: As we transition into the fall, market activity may begin to stabilize; however, the lead-up to the holiday season will keep freight demand high. The ongoing agricultural and construction projects will continue to support elevated market activity levels.
Seasonal Trends and Consumer Demand:
  • Back-to-School and Holiday Shopping: August’s back-to-school shopping led to an 8-10% increase in consumer spending, boosting freight demand​. This surge will taper off in early September, creating a brief lull. However, freight demand will rise again by late September as retailers gear up for the holiday season, particularly for Black Friday and Cyber Monday. This preparation phase will tighten capacity and may increase spot rates, marking the start of a busy end-of-year shipping period.
  • Produce Season Impact: The demand for Reefer equipment will stay high in September, driven by ongoing harvests across key agricultural regions. California, Florida, and Texas continue to see strong demand due to grapes, tomatoes, and strawberries. The Midwest is also a critical player, with apple and corn harvests ramping up in Illinois, Iowa, and Michigan. Tight capacity and elevated rates are expected to persist, particularly in these areas. As the season progresses, shippers should anticipate potential delays and plan for higher costs due to increased demand.
  • Construction and Flatbed Demand: The U.S. construction industry shows mixed results in 2024. In July, building permits fell by 7% year-over-year, indicating a slowdown in new residential projects. However, total construction starts increased by 10%, driven by a strong rise in nonresidential buildings and infrastructure projects​, with California; has seen a 13% increase in single-family home permits, reflecting strong demand for residential housing. Conversely, multifamily housing permits dropped by 27%, the lowest in over a decade, signaling a shift towards less dense housing options and Texas; continues to experience robust construction activity, with a 41% increase in residential construction permits in the first half of 2024. This growth supports high demand for flatbed trucks to transport building materials​.
    • Regions with Low Starts or Decline:
      • Midwest: Significant declines in construction activity continue, making it the region with the most pronounced downturn in July 2024​.
      • Northeast: Both new construction and alteration activities have declined year-over-year​.
      • Southwest: A slight decline in new construction starts reflects potential market saturation and higher borrowing costs​.
  • Grain, Dairy, and Beverage Movements: Seasonal demand for grains and beverages will continue to drive freight volumes in the Midwest, California, and New York. The increase in grain shipments observed in August is expected to persist, supporting high demand for transportation services in September.

Ocean, Air, Port, and Intermodal Impacts

  • Ocean Freight Challenges: The increase in ocean freight volumes seen on the East Coast due to rerouted shipments will likely continue into September. Geopolitical tensions, such as those affecting shipping routes through the Red Sea, will contribute to global shipping delays, influencing freight planning and costs.
  • Air Freight Demand and Constraints: Air freight demand will remain strong in September, driven by the need for quick transport of high-value and time-sensitive goods. The limited availability of aircraft observed in August will continue to pose challenges, making it critical for businesses to plan ahead and secure capacity early.
  • Rail Strike Resolution: What Happened and What Was Avoided:
    • Quick Resolution of the Rail Strike: The recent rail strike in Canada, involving two major rail operators, was swiftly resolved through negotiations, avoiding significant disruption. The strike, which focused on labor contracts, was quickly settled to prevent delays in shipments across critical supply chains.
    • Potential Impact of the Strike: Had the strike continued, it could have severely impacted the transport of essential goods, especially grain shipments from the Midwest to export ports, disrupting the North American supply chain. Prolonged disruption would have led to shortages, increased shipping costs, and delays in goods reaching their destinations, significantly affecting industries dependent on rail transport.
    • What Was Staved Off: With the quick resolution, the economy avoided a potential ripple effect of supply chain delays, increased freight rates, and congestion in other modes of transport as companies sought alternatives. This also helped maintain stable prices for consumers and ensured that businesses reliant on timely rail shipments continued their operations without interruption.
  • Predictions and Impacts: The congestion and high demand at major East Coast ports will continue, affecting processing times and shipping costs. Rates for all types of freight equipment are expected to remain elevated due to persistent high demand, seasonal factors, and the impact of fluctuating fuel prices. Intermodal solutions will remain a reliable and cost-effective option for long-haul transportation, with investments in rail infrastructure supporting efficient freight movement.

Seasonal Trends

  • Van Shipments: After the back-to-school rush, which led to an increase in freight demand, a slight dip is expected in early September. However, demand will likely pick up again towards the end of September as retailers start stocking up for the holiday shopping season. The transition from the back-to-school period to holiday preparations means that while there may be a brief lull, overall, the demand for Van equipment will remain high. Shippers should plan early to avoid capacity shortages and potential rate increases as holiday preparations accelerate
  • Reefer Shipments: Reefer demand will remain strong through September, driven by ongoing produce harvests, particularly in states like California, Texas, and Florida. Crops such as apples, grapes, and various vegetables will continue to require temperature-controlled transportation. In addition, the increase in dairy and beverage shipments typically seen in September will add to this demand. The higher rates and tight capacity observed in August are expected to persist, necessitating early bookings and strategic planning to manage logistics effectively.
  • Flatbed Shipments: While the demand for Flatbed equipment will remain high in September due to ongoing construction projects, this demand is expected to decline as we move into Q4. As winter approaches, construction activity typically slows down, which may ease some of the capacity constraints. However, in the immediate term, shippers can still expect high demand and tight availability, particularly in areas with significant infrastructure projects.

Transportation Events

Upcoming Holidays
  • IANA Intermodal Expo, Sept 9th-11th, 2024
  • CSCMP Edge Conference, Sept 29th – Oct. 2nd, 2024
  • Gartner Supply Chain Planning Summit, Dec 3rd – 4th, 2024
  • Manifest 2025: The Future of Logistics, February 10th – 12th, 2025
  • Air Cargo Conference March 2nd-4th, 2025
  • ProMat 2025, March 17th- 20th, 2025
  • Labor Day, September 2nd, 2024
  • Columbus Day/Indigenous Peoples’ Day, Oct 14th, 2024
  • Halloween, Thursday, October 31st, 2024
  • Veterans Day, November 11th, 2024
  • Thanksgiving Day, November 28th, 2024
  • Black Friday & Cyber Monday, Friday, November 29th, Monday, December 2nd
  • Christmas, December 25th, 2024

BM2 NEWS

  • We proudly welcomed 5 new team members to the BM2 Crew! From new college Grads to talented professionals changing industries, our newest class proves that careers in freight are limitless!
  • Community engagement. BM2 is excited to be engaged in a partnership with NKU college of business. Our engagement into the success of the students at this university has provided internships, community engagement opportunities for BM2 and New graduates!
  • August 28th, 2024 – BM2 very own Snr. Operations Support Manager Carla Bay, was a moderator on T&LC Virtual Workshop for Claims & Loss Prevention!

DID YOU KNOW

  • At BM2 Freight, we uphold a 75% prebook percentage for shipments tendered to us with a 24-hour lead time. This proactive approach ensures that drivers are assigned to your shipments in advance, minimizing the risk of service failures, delays, and increased costs due to fallouts. Trust BM2 Freight to deliver your goods reliably and efficiently.

INDUSTRY NEWS TO KNOW

Market Update August 2024

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Industry Market Trends

GENERAL MARKET TRENDS

POTENTIAL MARKET DISRUPTORS

Current Market:
  • Agricultural and Seasonal Trends: The Midwest is seeing a surge in freight demand due to ongoing agricultural shipments of corn, soybeans, and other seasonal produce, leading to tighter capacity and higher spot rates for Reefer and Dry Van equipment. Recent reports from June and July 2024 highlight record yields and increased export demands.
  • Back-to-School Freight Demand: The back-to-school season is driving increased demand for Dry Van equipment to transport educational supplies and apparel, adding to the existing capacity strain. Retailers are reporting higher-than-expected inventories due to early school year preparations.
  • Construction Projects: High demand for Flatbed equipment in Texas and California due to significant construction projects, including highway expansions, new commercial developments, and residential projects. Recent data indicates a 15% increase in construction permits issued in these regions compared to the same period last year.
  • Port Operations: Recent improvements at West Coast ports, including Los Angeles and Long Beach, have reduced congestion. However, East Coast ports, particularly in the Southeast, are now experiencing increased volumes and delays due to rerouted shipments from Asia. Reports from July 2024 indicate a 25% increase in container volumes at the Port of Savannah.
Market Predictions:
  • Continued Tight Capacity: We anticipate tight capacity in the Midwest and Southeast through August due to sustained high demand for Reefer and Flatbed equipment, driven by summer goods and holiday season preparations. Expect heightened demand as agricultural yields continue to peak.
  • Rate Increases: Spot rates are expected to rise further, influenced by ongoing consumer demand and seasonal trends.
  • Potential Delays: Customers should prepare for potential delays and higher shipping costs, especially in regions affected by seasonal produce trends and ongoing construction projects.
  • Post-August Market: The market is expected to stabilize post-August but will maintain elevated activity levels due to continuous produce shipments and construction projects in key regions like California, Texas, and the Midwest.
Seasonal Trends and Consumer Demand:
  • Back-to-School and Holiday Shopping: Seasonal retail activities, including back-to-school and early holiday shopping (Prime Day), are driving up freight volumes and capacity demand, particularly affecting Dry Van equipment availability. Retail analysts report a 10% increase in consumer spending on school supplies compared to the previous year.
  • Produce Season Impact: Ongoing produce season in California, Florida, and Texas is driving high demand for Reefer equipment. Specific crops such as grapes, broccoli, carrots, tomatoes, and strawberries are significantly contributing to this demand. USDA reports from July 2024 highlight a 12% increase in strawberry shipments from California.
  • Construction and Flatbed Demand: Increased construction activities across the USA, particularly in Texas and California, are driving up demand for Flatbed equipment. Projects involving infrastructure upgrades and commercial developments are straining capacity and pushing up rates. The National Association of Home Builders reports a 20% increase in construction activity in the first half of 2024.
  • Grain, Dairy, and Beverage Movements: Seasonal demand for grains (corn, soybeans), dairy products, and beverages (both alcoholic and non-alcoholic) is impacting freight demand, especially in the Midwest, California, and New York. Industry reports from July 2024 indicate a 15% increase in grain shipments compared to the same period last year.
Emerging Threats and Security Concerns:
  • Incident Surge: In June 2024, 272 incidents were reported, reflecting a significant increase over the previous month. Food and beverage commodities, particularly non-alcoholic beverages, hard liquor, footwear, supplements, copper, and vehicle maintenance products, remain primary targets.
  • Evolving Theft Techniques: Sophisticated fictitious pickup schemes in Southern California are bypassing identity verification and compliance tools, leading to an increase in cargo theft. The use of street transloads is becoming more common than public crossdock warehouses.
  • Geopolitical Instabilities: Recent attacks by Houthi rebels in the Red Sea are causing diversions and delays in global shipping routes, contributing to overall supply chain disruptions. July 2024 reports indicate an increase in insurance premiums for shipments passing through the region.

Ocean, Air, Port, and Intermodal Impacts

  • Ocean Freight Challenges: Ocean freight volumes are increasing, especially on the East Coast due to rerouted shipments from the West Coast. This shift has led to tighter capacity in ports like Savannah and Charleston. Geopolitical tensions, such as attacks in the Red Sea, are causing global shipping delays, resulting in longer transit times and higher freight rates.
  • Air Freight Demand and Constraints: Air freight demand remains strong, driven by high-value and time-sensitive shipments in sectors like electronics and pharmaceuticals. However, capacity constraints due to limited aircraft availability and increased competition are pushing rates higher and causing potential delays. Businesses are advised to secure air freight capacity in advance and explore alternative routes.
  • Predictions and Impacts: We anticipate ongoing congestion at major East Coast ports, particularly in Savannah and Charleston, due to increased rerouted shipments from Asia, leading to longer processing times and higher port fees. Ocean and air freight rates are expected to remain elevated due to high demand and capacity constraints, while spot rates for Van, Reefer, and Flatbed equipment are predicted to rise further due to seasonal demand, fuel price volatility, and tight capacity. Intermodal freight will continue to be a stable option for long-haul shipments, driven by its cost-effectiveness and reliability, with investments in rail infrastructure and technology improving efficiency. Geopolitical tensions and economic factors such as fluctuating fuel prices will continue to impact global shipping routes and freight costs, necessitating contingency plans to address potential disruptions.

Seasonal Trends

  • Seasonal Trends for Van Shipments: The back-to-school season is significantly impacting Van shipments as retailers stock up on educational supplies, apparel, and electronics. This period typically sees increased freight volumes and tighter capacity, leading to higher spot rates. Additionally, preparations for the holiday season are expected to surge with the transportation of consumer goods, including toys, electronics, and household items. This trend usually begins in late summer and peaks in early fall, creating a ripple effect on freight rates and capacity. Shippers should plan for increased demand and secure capacity early to avoid premium rates and potential disruptions.
  • Seasonal Trends for Reefer Shipments: The ongoing produce season in regions like California, Florida, and Texas is driving high demand for Reefer equipment. Key crops such as grapes, broccoli, carrots, tomatoes, and strawberries are in peak harvest, requiring temperature-controlled transportation to maintain freshness. This seasonal demand leads to higher spot rates and tighter capacity, especially in agricultural hubs, necessitating early booking and strategic planning for shippers. Additionally, summer months typically see an increase in dairy and beverage shipments, particularly for items like milk, cheese, and non-alcoholic beverages. This spike is driven by higher consumption rates during warm weather and increased production to meet demand, making it crucial for shippers to secure reliable carriers and plan their logistics well in advance.
  • Seasonal Trends for Flatbed Shipments: Summer is peak construction season, leading to a surge in demand for Flatbed equipment to transport building materials such as steel, lumber, and concrete. Major infrastructure projects, highway expansions, and commercial developments in states like Texas and California are significantly contributing to this demand. Shippers in the construction industry should anticipate higher rates and limited availability, making early booking and strong carrier relationships essential. Additionally, there is a notable increase in the movement of agricultural equipment and supplies, such as tractors, irrigation systems, and fertilizers, particularly in agricultural states like Iowa, Nebraska, and Kansas. The heightened activity in this sector drives up demand for Flatbed services, impacting rates and capacity availability.

Transportation Events

Upcoming Holidays
  • Brake Safety Week, August 25th – 31st, 2024
  • CSCMP Edge Conference, Sept 29th – Oct. 2nd, 2024
  • Gartner Supply Chain Planning Summit, Dec 3rd – 4th, 2024
  • Labor Day, September 2nd, 2024
  • Columbus Day/Indigenous Peoples’ Day, Oct 14th, 2024
  • Veterans Day, November 11th, 2024
  • Thanksgiving, November 28th, 2024
  • Christmas, December 25th, 2024

BM2 NEWS

  • BM2 is a proud member of CSCMP! We sponsor round tables in multiple markets, as well as encourage our team members to learn from the CSCMP events. BM2 will be at the 2024 CSCMP Edge conference in Nashville TN (Sept 29 – Oct. 2). Reach out to us to connect if you will be there as well!
  • BM2 continues to dedicate resources to improving its technology. Recently, we launched Dialpad. A dynamic phone software, which allows us to connect and communicate with our customers and carriers in a more streamlined way. If you want to learn more about this integration, please read the article posted by Dialpad and BM2’s Director of IT, Kevin Ruschman. (How BM2 Freight Services Future-Proofs its business with Dialpad Ai | Dialpad)

DID YOU KNOW

  • At BM2 Freight, we’re passionate about leveraging technology to enhance our services! Nearly 90% of all BM2 shipments are tracked through our technology providers, giving you real-time visibility into the whereabouts of your freight at every stage of its journey. What if a driver turns off tracking or fails to accept tracking? Rest assured, BM2 has your back. We go the extra mile by maintaining direct communication with our drivers throughout the shipment, ensuring updates are provided manually if necessary. While some may consider this approach old-school, we believe it’s essential for proactive engagement with our drivers to deliver the best service and prevent issues before they occur. When technology encounters hiccups, count on BM2 Freight to deliver the answers you need!

INDUSTRY NEWS TO KNOW

BM2 Freight
(800) 319‑1115
sales@bm2freight.com
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50 E Rivercenter Blvd. Ste. 525
Covington, KY 41011