Table Talk Tuesday is back!
Today, Team Jake talks about industry changes over the years and how prices/costs have increased over the years. Better yet, they talk about how we handle them and how our customers should navigate the ever-changing dynamics of shipping freight. Enjoy today’s video below.
Today we’re reviewing the dry van market and it may appear to be what you expected.
It doesn’t always make sense. We often use numbers to explain why things are the way they are, but sometimes you have to dig a little deeper to understand why the numbers just seem…off.
That’s what happened when we checked out the DAT trendline data for dry vans. At first glance, it looks great- rates are declining quickly. However, if you take a deeper dive into it, it’s not exactly what it seems. Let’s work through it in pieces.
The number of van loads posted on the DAT load board compared to trucks available increased the last week of March, but compared to February, it decreased almost 38%.
The rates are still higher than they were a year ago by 14%, but the trend week over week and month over month is on the decline- at a rate of about 1-2% depending on the time frame.
For the first time since December 2021, van spot rates have dropped below $3 per mile on average. While that trend is definitely favorable for the freight industry, there’s also more to consider than just the spot rate: fuel & location being major contributors.
The graphics from DAT below don’t include fuel. The spot rate may be dropping, but the total rate with fuel included isn’t making that kind of significant drop.
Fuel is, however, starting to drop slowly, so the industry may start to feel the impact in the near future- just not yet. It also depends what part of the country you are in. If you’re in a hot market, rates are remaining steady or even dropping a little. If you aren’t, you’re likely still feeling increases.
The good news is, for the first time in a long time, trends are starting to turn in our favor. Whether or not that will continue and be sustainable is yet to be determined.
Apparently he calls himself “the game,” (yes, reference Triple H) but we haven’t ever heard anyone else call him that. We can’t imagine why (ha)!
Chad Rugenstein joined Premier Global about six months ago! He brings over twenty years of brokerage experience to the table.
Chad is a midwestern guy, originally from Indiana. He moved to Ohio years ago (apparently, if he tells us a date, it will show his age- like the grey hair doesn’t already give us an idea, right?).
Chad is married with two kids- both of which he says are handfuls- a son, Blake, and daughter, Addie. They are both multi-sport athletes, so they keep him extremely busy. He claims they already signed to contracts in crayon years ago! They recently added a new member to the family. He goes by Thor and is the family’s adopted dog. Thor keeps everyone on their toes, so much so, that the child locks are back on the cabinets.
Chad enjoys watching his children play sports and excel at competitive levels. He loves to spend time with friends and family at the lake- boating, fishing and just hanging out!
When asked why Chad joined PGT, the answer seemed to come easily to him.
“The owner takes pride in what he does and doesn’t discount his value! He understands that freight doesn’t sleep!”
Chad wanted to be a part of a growing company where voices are heard, and big things will happen! “That’s why PGT was the easy choice.”
His kids get their competitive drive honestly. Chad said “my motivation is winning every day! I want to prove that the impossible is possible while making a good living and providing great service to my clients so we can win together!”
In June 2020, PGT opened our doors and began building an operation. One year later, we became a nationally certified, minority owned business enterprise (MBE).
So, the real question is: how does that benefit our business partners?
There are several intangible and quantifiable benefits to working with a MBE. We will do our best to break it down for you.
Cost Savings.
In the modern era, many companies have diversity spend requirements. Partnering with PGT and other MBEs can offer cost saving strategies by taking advantage of numerous federal and state tax incentives, tax breaks, and potential rebates. We won’t pretend to know all of the opportunities on the tax side (you have an accounting/tax department for that, right?) but we do know there are a lot of perks. This could lead to expanded growth opportunities through associate investment, acquiring other companies, expanding your business, etc. There are tax incentives for the MBEs themselves and PGT loves to share those savings with you to help reduce your costs.
Brand Recognition.
Building a working relationship with a MBE can strengthen your brand. It can provide new marketing avenues and community outreach opportunities. Working with minority-owned companies like PGT shows you value inclusion, equality, and unification- all of which tend to paint a positive picture of your company within the local, regional, and national outlets. Your Public Relations team will have new opportunities to get in front of markets they may not have been active in prior to the relationship with a MBE. With more opportunities comes more brand recognition.
Culture.
The value MBEs can provide has proven to be crucial for a company’s culture. Diversity is highly valuable and having a business relationship with a certified MBE like PGT shows that your business recognizes that value. Partnering with MBEs shows that your business supports the expansion and development of minority communities.
Minority-owned companies are well-connected with each other and in local businesses. That alone can bring more opportunity through various networking events.
There are definitely other benefits to working with PGT and other MBEs. We would love to talk to you about it and work together to determine the best plan to build our partnership. We believe all good things start with the initial conversation, so give us a call. We’d love to hear from you and answer any questions you may have. You can reach us directly at 513-575-7645.
One advantage to working with PGT is that you don’t have to deal directly with truck problems. We do that for you. Let’s be honest, that’s a good thing for you.
Just like all aspects of logistics, carriers come with their own set of challenges. Our goal is to minimize those as much as possible, but sometimes things are just out of everyone’s control. Instead of passing that headache on to you, we handle it for you.
One of those challenges is “the fallout.”
Carriers often book loads and then have to drop off the load after the fact. As a broker and a shipper, that can be very painful, especially if the freight is time sensitive.
Why do carriers fall out?
We wish the answer was black and white.
There’s a long list of reasons a carrier may not be able to hold up their end of the agreement.
The reality is sometimes they just find a better load. “Better” could mean a few different things, too.
In today’s market, however, one of the most common reasons for fallouts is money driven. Due to the tight capacity across the country (see previous blogs on driver shortage), carriers have options to be pick and choose more than they ever have. Majority of the time, they will pick the loads that pay the most money per mile. Can you blame them? No, not really.
In an effort to minimize fallouts, PGT takes some extra steps.
Avoiding carrier fallouts is impossible, but we promise to handle it so you don’t have to. We will keep open lines of honest communication with you and will recover the load with a new carrier immediately. The conversation isn’t always easy, but we believe it is necessary in order to build a valuable partnership.
Are you organized? Can you multi-task? Are you good at problem-solving? Have you been thinking of a new career path? Or maybe you like the path, you just want to revisit who you work for at the moment?
If the common answer to those questions is YES, you’ll want to keep reading!
The logistics industry has a need for many different skillsets. At PGT, one position we have is a Logistics Administrator. You know what we think about them? They are the glue for the entire operations team.
We’ll explain what’s in it for you. Most people care about the pay first, so we will start there.
We take pride in our work here at PGT and want you to as well. This role offers competitive pay plus a the potential for bonuses throughout the year. The pay goes hand in hand with your experience. We are willing to train, but if you have the background in both administration and logistics, we aren’t afraid to pay you for that experience!
What else does PGT have to offer? Let us break it down for you by highlighting some of the most important parts.
The atmosphere. Relaxed. Casual. Fun. Sound good yet? PGT is all of those things and then some. We want everyone to enjoy coming to work. Sure, there are always going to be bad days, but we believe there are more good days than bad here. There are TVs going, music in the background, and often jokes and stories flying back and forth. We enjoy simple things like casual attire, walks around the building, flexibility, and team events outside of the office.
The benefits. Our list of benefits continues to grow as we grow. We currently offer a 401k with a 401k match! We want you to be with us until you retire, so let us help get you there. We pay a cell phone stipend and paid time off at time of hire. In addition, we can get you set up with medical, dental and vision insurance. Not bad for a company less than two years old, right?
Growth potential. New company = endless opportunities. We have a solid staff that has laid the groundwork for success, now we just need you to help build the foundation of our future. As we grow, so do the opportunities. The potential to move up into various other roles is endless. You can do as much as you want with us and go as far as you want to go. You control your destiny when you work at PGT. How far do you want to go?
Sounds good, right?
Come join our team! Check out the job description on Indeed and apply while you are there! You can also give us a call at 513-453-6046 to set up an interview.
Fun and exciting things just keep coming at PGT. In April, we are introducing a new feature: Table Talk Tuesdays!
This could mean many different things: tips for customers, PGT insider information, industry changes, etc.
Our first episode of Table Talk is geared toward our carriers.
Check out the video below for Carrier Tips with Kandra, Taylor & Jake.
Spring is here. That means we’ve kicked off produce season.
What is produce season? It seems obvious, but the reality is, there are so many variations of fruits and vegetables that it makes it a little more complex. Add in the different types of weather and temperatures across the globe, and produce is technically moving year-round.
But…here we are, in peak season, which generally runs February through July. This is when the largest volume of fruits and vegetables are harvested and shipped to manufacturers, grocery stores and various other vendors across the country.
The real question this time of year: how does peak produce season impact truck rates?
I think we all know what happens when demand for trucks rises, right? If not, let us clarify. Capacity shrinks. It’s not the best ratio, but the number of trucks and drivers doesn’t change just because there is more volume. In addition to that, refrigerated trucks are in even higher demand, so the rate for reefers increases drastically this time of year.
That’s all great information, but what does the data tell us?
According to DAT, spot market freight rates rise over 30% in the spring, peaking toward the end of March. Because of this, carriers will intentionally position their trucks in the produce states- mostly southern states & California. This impacts shippers in other markets because they experience capacity shortages in their areas because more trucks are looking for the higher produce rates. This generally drives rates up for other equipment- vans, rail, LTL, etc.
How big is the increase? Spot rates (not including FSC), have increased by almost $1.00/mile in the last three months, per DAT. Comparing that to two years ago, rates have increased over 120% this time of year, averaging almost $5.00 per mile.
To try and combat higher prices, reach out to us. We can help with spot market rates with our preferred carriers, but we can also work together to put some contracted rates in place so you don’t feel such a dramatic price increase during peak season. And a big thing- put your focus on being that one shipper everyone loves. Have flexible shipping and receiving hours, driver-friendly facilities, and treat drivers like they will be handling your valuable freight…because, well, they are! By doing this, you will become a shipper that carriers will gravitate to and will be more willing to run at lower rates.
It’s time to meet the one that holds the sales floor together. She wears many hats- but is the go-to person for our daily operations.
Meet Jennifer, a Hoosier girl through and through.
She was born and raised in Indiana. She graduated from Vincennes University with an Associates Degree in Accounting (yes, that’s one of the hats she wears here at PGT).
Jennifer married her high school sweetheart, and they have three children and one grandson. They love to spend most of their time outdoors: kayaking, fishing, or going to the local “beach” at Brookville Lake (total Hoosier at heart, right?).
She started with Premier Global Transportation almost a year ago as a Logistics Administrator.
“I love what I do and I’m proud to be a part of the team.”
Jennifer has been in the industry for seven years, but one thing she loves about the industry is the daily challenge.
“It still challenges me every day to grow as a leader, professional, and even in my personal life,” she explains.
“If you’re looking to expand your experience or to start your journey in the freight industry, I highly recommend joining our team,” Jennifer explained.
“It’s great to be part of a team environment that works together to create personal and company success. We are always growing and striving to be better.”
We told you big things were happening at PGT!
The reality is, though, that it couldn’t have happened without all of our customers, carriers, team members, and families. Our business doesn’t work without each and every one of you, and we are extremely humbled by that.
Thank-you doesn’t seem like enough, but words are hard to come by around here right now. We are proud of our success and cannot wait to continue to grow with all of you! Thank you for all of your support, relationships, and work!
We couldn’t have hit $1 MILLION of revenue in a one-month period, less than two years in business, without you all. March was a big month for us and we are excited to continue sharing our milestones with you!
Because we don’t know what else to say: THANK-YOU one million times over! (I don’t really feel like typing “thank-you” a million times)
