The company usually relies more on rail for moving inventory from factories to distribution centers, but changes in production schedules necessitated a more flexible transportation option.
What happened
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Why it matters
In the current trucking environment, demand exceeds the supply of available trucks and drivers. Shippers pushed to the spot market will pay more than they're accustomed to for moving their freight.
The most recent spot market data from DAT shows van rates up 42% YoY and 11% MoM in March, and reefer rates were up 34% YoY and 9% MoM.
When transporting freight by truck, McNutt said Lamb Weston usually relies on contract carriers "as opposed to securing spot trucking, which tends to be higher cost." Even contract rates have risen as shippers lock in trucking capacity.
This news brief is based on reporting published by Supply Chain Dive on 2021-04-09. The original report is linked below.
Supply Chain Dive
https://www.supplychaindive.com/news/lamb-weston-rail-truck-spot-rates-freight-capacity/598108/This independent news brief is based on the public source identified above. It is an original summary or translation, not a reproduction of the source article. Rights in source text, research, trademarks and images remain with their respective owners; images are used under the licence or permission identified in the credit. Rights holders may contact rights@goodproductasia.com with evidence of ownership. Verified concerns will be corrected, replaced or removed promptly. This report is not investment, legal, medical or purchasing advice.
