Previously, on the team’s story, it has been reported that Uber Mexico freights are experiencing the early arrival of the peak season due to the demand, but though this has pleasant effects, such as encouraging cross-border deliveries, at the end of the day, the consequences outweigh the advantages.
In the continuation of this report, these Uber Mexico freights are also giving these effects: the climbing of cross-border rates, capacity tightening across North America, and the volatility of supply chains. Here’s the scoop on RSF.
Cross-border rates climb
Due to these recent happenings, freight rates between the USA and Mexico have risen sharply since February this year.
Reports found cross-border rates up eight-percent to 15 percent across the market with a number of big corridors witnessing increases approaching 30 percent in two months merely. Produce demand, drive shortages, and more also work to create an upward pressure on transportation expenditures.
Tightening capacity across North America
Beyond these cross-border markets, Uber Freight in Mexico likewise reported truckload conditions tightening across the country and in North America, despite a normally softer seasonal period. These are the pointers for remembering:
- Van spot rates increased 24.8 percent year over year in April
- Reefer rates rose 26.3 percent
- Meanwhile, Flatbed spot rates climbed 23.7 percent
- Spot market volumes were up 44 percent year over year
- On the other hand, first-tender acceptance rates slipped to 82 percent,
- Lastly, route-guide compliance fell to 86 percent, forcing more freight into the higher-cost spot market.
Regulatory and legal changes are also contributing to capacity constraints.
Supply chains remain volatile
Despite those domino-effect change, international freight markets continue to face uncertainties due to the impacts of the trade war, shifting sourcing strategies.
However, supply chains remain volatile.
Global schedule reliability remains almost 63 percent, with companies diversifying sourcing away from China, according to Uber Freight.
For Uber Freight shippers, the message is vivid: conditions that many expected to emerge during peak season are already here.
“The window to get ahead of these conditions is narrowing,” the findings stated, which means that shippers must secure capacity earlier, closely monitor tender acceptance rates, and devise contingency plans for critical domestic and cross-border lanes. RSF is following very closely. For more of these news, open your account!