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

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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.

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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.

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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.

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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!

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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.

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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.

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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)

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

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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.

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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.

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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.

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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.

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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.

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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, 16-Sep-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)

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

• 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)
• 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)
• State of Freight for July: ‘Bullish’ market coming for freight economy – FreightWaves
• How freight fraud became the perfect crime – FreightWaves

Industry Market Trends

GENERAL MARKET TRENDS

POTENTIAL MARKET DISRUPTORS

• 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.

Ocean, Air, Port, and Intermodal Impacts

• 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.

Seasonal Trends

• 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 7th – 13th, 2024 FMSCA Safety week, August 25th – 31st, 2024 CVSA Brake Safety Day, Planned but unannounced. TIA Conference	Juneteenth, Wednesday, June 19th Independence Day, Thursday, July 4th Labor Day, Monday, September 2nd

BM2 NEWS

• 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!

DID YOU KNOW

• 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.

 

INDUSTRY NEWS TO KNOW

• State of Freight webinar for May: Not an inflection point yet but a benchmark turns higher – FreightWaves
• ECONOMIC TRUCKING TRENDS: Truck tonnage dips, and Roadcheck rate bump underwhelms – Truck News
• Spot Market Insights from FTR & Truckstop.com – week of May 27, 2024 (ftrintel.com)
• Driver employment sees strong growth, THRC report reveals – Truck News
• CBSA strike potentially looms in June – Truck News
• Texas ports brace for predicted above-average 2024 hurricane season – FreightWaves