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Market Update 1.29.26

Weather Updates:

  • Freeze protection services are currently active across Canada and most of the U.S. east of the Rocky Mountains, spanning from Montana through New Mexico, except in the southern coastal states. For shipments containing freezable freight, please ensure to add freeze protection service. Please note that this service brings additional charges and transit delays.
  • ‌A major winter storm hit the South last week, from Texas to the Carolinas and along the East Coast. Service disruptions from road closures, power outages, and hazardous conditions are clearing, and regular transit times will return when backlogs of freight clear over the next week or two.

‌Small Parcel Updates:

  • ‌UPS and Amazon: United Parcel Service said Tuesday it plans to cut an additional 30,000 jobs this year as it winds down its Amazon partnership and executes a multiyear turnaround plan. The company also identified 24 buildings for closure in the first half of 2026, after shutting 93 facilities last year, with further closures possible later in 2026.
  • ‌Parcel Weather Impacts: Winter Storm Fern disrupted parcel networks nationwide with severe weather from Texas to the Northeast. FedEx issued a national service disruption despite contingency plans at its Memphis and Indianapolis hubs. UPS suspended pickups and deliveries in more than 3,000 ZIP codes, and air operations were disrupted at its Louisville hub. USPS suspended Priority Mail Express service guarantees and temporarily halted live animal shipments.

LTL Updates:

  • ‌Magnum Improvement: Magnum LTL has opened a new 23 door LTL terminal in Sioux City, Iowa, replacing its previous facility and expanding dock and storage capacity to support rising freight volumes in the growing market. The Sioux City location operates as part of a nationwide network that includes more than 30 terminals and a fleet of roughly 2,000 trucks.
  • ‌A. ‌Duie Pyle Future Growth: A. Duie Pyle acquired a 43-acre site in Suffolk, Virginia, to develop a 52-door LTL cross dock with 200,000 square feet of warehouse space to support freight moving through the Port of Virginia. The facility is slated to open in Q2 of 2027 and will strengthen Pyle’s regional network by integrating LTL, warehousing, and transloading services across key freight corridors.
  • Diesel Rates: National diesel prices increased, up $0.094 from last week, averaging $3.624 per gallon, $0.035 lower than the same time last year. The West Coast less California region experienced the largest increase, up $0.162 to $3.944 per gallon.

TL Updates:

  • ‌Market Activity: Spot load posts were down 2.3% from last week, and spot truck posts increased by 1.5%. The Load-to-Truck Ratio (LTR) was up for reefers and down for vans and flatbeds. ‌
  • ‌Outbound Tender Rejection Index (OTRI): The OTRI has surged as the impact from winter storm Fern continues to linger. The OTRI currently sits at 10.72, up sharply from last week’s 9.15 value. ‌‌
  • Dry Van: National van demand decreased by 8.9% to a 6.00-1 LTR nationally, with the highest demand spread across most the United States, other than CA and IL, exceeding 5.5+ to 1 LTR. The spot rate per mile (RPM) for dry vans is up $0.02 from December, averaging $2.31 nationally, with the Midwest holding the highest RPM at $2.64. The VOTRI gained over 1.5 points this week, currently sitting at 10.80 compared to last week’s value of 9.23. ‌
  • ‌Flatbed: National flatbed demand decreased by 8.2% to 37.43-1 LTR, with the highest demand spread across most the United States, other than AZ, DE, MD, NJ, OK, RI, TN and TX at over 18+ to 1 LTR. The flatbed spot RPM is up $0.06 from December, averaging $2.59 nationally, with the Midwest region holding the highest RPM at $2.77. The FOTRI was the largest gainer of the week, jumping to 22.20 compared to last week’s value of 14.66. ‌
  • ‌Reefer: National reefer demand increased by 11.5% to a 14.42-1 LTR nationally, with the highest demand spread across most the United States, other than CT, MD, NC, OR, RI, SC, VT and WA at over 12+ to 1 LT R. The spot RPM for reefers is up $0.09 from December, averaging $2.79 nationally, with the highest rates in the Midwest at $3.21. The ROTRI has increased by over 1.5 points, buoyed by freeze protect demand associated with frigid winter weather. The ROTRI currently sits at 19.56 compared to last week’s value of 17.85.

‌International Updates:

  • ‌FBX Trends: Container rates were relatively flat from last week with the global average cost of an FBX container down 1% to $2,406, and the FBX01 container average increased less than 1% to $2,675. The FBX03 decreased less than 1% from last week to $3,928.
  • ‌Port of LA: The port reported a 15.63% YOY volume decrease from 17 scheduled vessels during the week of January 25, 2026. For the week of February 1, volume is projected to decrease 4.56% YOY from 19 scheduled vessels moving 106,348 TEUs.

Embargoes:

  • ‌ABFS (ABF Freight)
    • ‌Wichita Falls, TX
    • ‌Sherman, TX
  • DAFG (Dayton Freight Lines)

‌Protect From Freeze