Transportation Market Update

August 20, 2021

TRANSPORTATION MARKET UPDATE

Schneider’s goal is to provide the latest market insights to help you navigate the ongoing market volatility.

Whether moving a critical load, keeping your supply chain going or long-term planning, Schneider remains committed to

safely and securely delivering your freight.

Schneider leverages data and analytics from multiple sources to provide the most up-to-date insights available

including, but not limited to, FTR, DAT, FreightWaves SONAR, Cass Information Systems, Inc., FleetOwner, FMCSA,

The New York Times, ATRI and Transport Topics. For the latest information and updates, visit Schneider’s Trending

Topics page.

MISS OUR LATEST VIRTUAL EVENT? WATCH IT ON-DEMAND!SUPPLY DIGITIZATION TODAY AND TOMORROW

Join us for a discussion on the state of supply chain technology

today, where the value lies and how you create a roadmap to

the best strategies for your business. Some topics we

will cover are:

• Taking digitization beyond shipment level tracking and

utilizing data to optimize supply chains.

• Technology architecture ecosystems including

Transportation Management Systems (TMS), Warehousing

Management Systems (WMS), Application Program

Interfaces (API’s) and more.

• How the industry is approaching the exploration and

development of technology to meet shipper needs.

Watch now

NEXT WEEK IS CVSA BRAKE SAFETY WEEK – PLAN AHEAD FOR RELIABLE CAPACITY

During Brake Safety Week, commercial motor vehicle

inspectors emphasize the importance of brake systems by

conducting inspections and removing commercial motor

vehicles found to have brake-related out-of-service violations

from our roadways.

During last year’s Brake Safety Week, 12% of the 43,565

commercial motor vehicles inspected were placed out of

service for brake-related violations.

Get the details about this year’s Brake Safety Week

Contact Schneider to plan ahead for reliable capacity

Source: CVSA

CVSA Roadcheck Week: Proof that planning ahead for reliable capacity is important.

Recent results show that inspectors removed 6,710

commercial vehicles and 2,080 drivers from roadways –

a 16.5% vehicle and 5.3% driver out-of-service rate –

over the three days.

Read the full results from CVSA Roadcheck Week

Source: cvsa.org; Updated 8/16/21

IN THE NEWS: INDUSTRY APPLAUDS SENATE PASSAGE OF $1 TRILLION BILL TO MODERNIZE U.S. TRANSPORTATION

Regarding trucking policy, the legislation would:

– Approve an apprenticeship for truckers younger than

21 to operate commercial vehicles interstate.

– Establish a truck-leasing task force.

– Direct the secretary of transportation to further

research side-underride guards for commercial

vehicles.

– Require the U.S. Department of Transportation to

analyze the effectiveness of electronic logging

devices.

– Require certain commercial motor vehicles to be

equipped with an automatic emergency braking

system.

– Reauthorize the premier federal highway law, which

expires at the end of September.

Source: ttnews.com; 8/16/21

Source: Amanda Andrade-Rhoades/Bloomberg News

Read article

On August 10, senators voted 69-30 to pass the $1 trillion Infrastructure Investment and Jobs Act. Of which $550 billion in new funds to modernize highways, bridges, tunnels and a transportation system in need of major upgrades.

IN THE NEWS: CARGO AIRLINES CANCEL HUNDREDS OF CHINA FLIGHTS AMID COVID OUTBREAK

• China is trying to contain the spread of the Delta variant,

and it's affecting global supply chains during Peak Season.

• Lockdowns have been curbing production, now the Port of

Ningbo has closed and hundreds of air cargo flights have

been cancelled.

• Logistics experts say rates are likely to skyrocket because

the service cutbacks are hitting at the same time demand

to move seasonal holiday goods increases and many

businesses turn to air because of massive backlogs in

ocean shipping. o Source: Flickr/hans-johnson CC BY 2.0

Read article

Sources: freightwaves.com; 8/16/21

IN THE NEWS: CHIP SHORTAGE SINKS MEXICAN AUTO EXPORTS IN JULY

• Automobile manufacturing in Mexico fell 27% in July compared to the same month last year, while exports fell 24% year-over-year, according to Mexico’s National Institute of Statistics and Geography (INEGI) due to the semiconductor shortage.

• More than 76% of the vehicles assembled in Mexico were exported to the U.S., followed by Canada (6.7%), Germany (5.3%), Colombia (1.5%) and the United Arab Emirates (1.4%).

Read the full article

Sources: freightwaves.com; 8/16/21

Source: Sean Gallup via Getty Images

Source: Jim Allen/FreightWaves

Source: nytimes.com; Updated 8/16/2021

COVID-19 CASES ARE AT THEIR HIGHEST RATE IN SIX MONTHS AS THE DELTA VARIANT

CONTINUES TO TEAR ACROSS THE COUNTRY – ESPECIALLY IN THE SOUTHEASTERN U.S.

AS VACCINATION RATES SLOW, MANY STATES AND COUNTIES WITH LOW VACCINATION RATES HAVE BEEN HIT HARD BY THE LATEST CASE SURGE.

Providers are administering about 713,000 doses per day on average, about an 79 percent decrease from the peak of 3.38 million reported on April 13.

Source: cdc.gov, nytimes.com, nytimes.com; Updated 8/16/21

Percent of population vaccinated (8/2/21)

VaccinatedFully

vaccinated

United

States59% 51%

Canada 73% 64%

Mexico 43% 23%

More than 4.72 billion vaccine doses have been administered worldwide, equal to 61 doses for every 100 people.

OUTBOUND TENDER VOLUME INDEX

Outbound tender volumes represent demand for capacity in the origin area. An increase in volume represents an increase in demand. Source: FreightWaves; Updated 8/16/2021

2018-2019

2021

2019-2020

Important Reminder: As you review the next slides and the related YoY data, keep in mind that it was in April of 2020 when we saw

tender volumes and rejects begin to plummet as businesses were forced to close due to lockdowns caused by the COVID-19 pandemic.

The Outbound Tender Volume Index bottomed out on April 16th at 8439.35, while Overall Outbound Tender Rejects bottomed out on April

30th at 2.57%. After this time, both volumes and rejects began their slow climb upwards to extremely elevated levels.

Compared to the Outbound

Tender Volume Index levels

during this time in the previous

two years, current OTVI is 8.47%

higher than 2020 and 53.15%

higher than 2019.

Outbound tender volumes represent demand for capacity in the origin area. An increase in volume represents an increase in demand. Source: FreightWaves; Updated 8/16/2021

20182019

This chart combines the current year-to-date trend with full year trends from 2018-2020. You will see consistent

trends in reduced outbound tender volumes during holidays. More importantly, it shows the sustained length of

time that record-level outbound tender volumes have remained. Compared to the Outbound Tender Volume

Index levels during this time in the previous two years, current OTVI is 8.47% higher than 2020 and 53.15%

higher than 2019.

OUTBOUND TENDER VOLUME INDEX

2020

2021

Outbound Tender Rejects are declining but are still sitting at 21.58% overall. Truckload rejects are at 22.46%,

Flatbed rejects are around 33.19% and Reefer rejects are highest at 25.11%.

Outbound tender rejects are an indication of available capacity in the origin market of the freight. If rejections are increasing,

capacity may be tightening in that area.

OUTBOUND TENDER REJECT INDEX

Source: FreightWaves; Updated 8/16/2021

Truckload & Flatbed

Refrigerated

The graph below details outbound tender rejects based on length of haul, regardless of mode. Since our

last report, rejects have slightly increased all lengths of haul.

City/local (< 100 miles): 8.48%

Short-haul (100-250 miles): 17.37%

Mid-haul (250-450 miles): 28.31%

Tweener (450-800 miles): 29.62%

Long-haul (800+ miles): 21.16%

Source: FreightWaves; Updated 8/16/2021

OUTBOUND TENDER REJECT INDEX BY LENGTH OF HAUL

Outbound tender rejects are an indication of available capacity in the origin market of the freight.

If rejections are increasing, capacity may be tightening in that area.

TRUCK FREIGHT RECOVERY INDEX

Seasonally adjusted freight activity increased 2.5% as a slight decline in flatbed offset stronger gains in dry van and flatbed.

Volume was about 23% lower than the weather-related peak in February peak but about double the pre-pandemic base.

Read more

Source: Truckstop.com Spot Market Insights

Analysis by FTR | Transportation Intelligence

RAIL FREIGHT RECOVERY INDEX

Intermodal ticked down again in the latest week continuing its downward trend that began in March and April of this year. It is easing back toward full recovery after being well above that for most of the last year.

Read more

Source: Truckstop.com Spot Market Insights

Analysis by FTR | Transportation Intelligence

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