B-Stock is observing historically high levels of shipping demand nationwide.
Updated on: 10/20/2020
B -Stock Shipping Update
Shipping Latest:
What does this mean for you?
Because of the abnormally high peak demand for shipping and lack of current capacity, we expect this to cause downstream pain points both in forward, and reverse logistics operations during Q4 of 2020.
Specifically, we expect to see:
- A lack of capacity to process and stage inventory for liquidation
- Missed shipping appointments for live loading
- Increasing costs for secondary warehousing options
Current Market Conditions
Nationwide Lack of Capacity
Rolling 6 Year View
Order Tender Rejection Rate
Tender rejection rates — the rate at which carriers reject electronically tendered load requests from shippers — have been a strong leading indicator in the past on what happens to contracted rates in the future.
The OTRR remains historically high above 25% indicating that one in four loads is being rejected at their current rates across the country
Trailer Capacity
The LMI is a diffusion index, where a reading above 50% indicates expansion and a reading below 50% indicates contraction.
The survey captures the rate of change in activity for key supply chain trends in areas like transportation, inventory and warehousing.
Trailer capacity has contracted at an incredibly quick rate to a new two year low of 23.8.
This has happened earlier in peak season than usual, and at a faster rate of decline.
The survey captures the rate of change in activity for key supply chain trends in areas like transportation, inventory and warehousing.
Trailer capacity has contracted at an incredibly quick rate to a new two year low of 23.8.
This has happened earlier in peak season than usual, and at a faster rate of decline.
Warehouse Capacity and Costs
The LMI is a diffusion index, where a reading above 50% indicates expansion and a reading below 50% indicates contraction.
The survey captures the rate of change in activity for key supply chain trends in areas like transportation, inventory and warehousing.
Warehouse capacity and costs continue to increase as overall warehouse capacity begins to contract
The survey captures the rate of change in activity for key supply chain trends in areas like transportation, inventory and warehousing.
Warehouse capacity and costs continue to increase as overall warehouse capacity begins to contract
