January 1, 2020, marked a big change for marine vessels. The IMO (International Maritime Organization) has implemented a significant reduction in the sulfur content for the shipping industry in 2020. The reduction brings the previous 3.5% sulfur content (bunker fuel), plummeting down to the new 0.5% sulfur requirement. Goldman Sachs estimates the monetary impact could be as much as $240 billion during the 2020 calendar year.
It is no secret that 2019 has not been kind to the trucking industry. In 2018, 310 freight companies were forced to close down. During the first half of 2019 alone, that number was approximately doubled, showing 640 closures. Looking at data like this, you can understand why the trucking industry is looking for ways to diversify and adapt, to stimulate the LTL industry. With Celadon, one of the industry titans in North America closing their doors, there have been more than a few eyebrows being raised around the industry. In times like this these, communication is key for maintaining peak efficiency across all operations.
If you drive the major highways anywhere in the United States, you are certainly aware of toll highways. Tolls not only increase the cost of passenger car trips but also impact the freight cost to transport products by truck throughout the United States. The toll money collected from toll payments helps pay for road maintenance, rest areas, grass mowing, road salting and snow removal (in the northern states). States are rapidly investing in toll booth modernization and the implementation of cashless toll booths, E-Z Pass technology and license plate photos are all ways to reduce toll collection costs and increase the flow of traffic for all vehicles.
In September, demand for freight continued to remain strong. However a combination of tighter capacity and fuel price increases were causes for higher spot market rates. Refrigeration and flatbed freight dropped from August to September according to DAT Truckload Freight Volume Index. The index reflects changes in the actual number of spot market loads moved each month.