The worst kept secret in the industry is that demand is in excess of capacity in every mode of truckload trucking, and has been for several months.
Carriers will have an amazing opportunity to participate in RFPs during this bid cycle. Before investing a ton of time, we discuss how best to think of the opportunities
Fleet execs are talking about the driver shortage as if it were the worst thing to happen in the industry, but they should be thankful. It keeps gives fleets pricing power.
Van and refrigerated spot rates remain near historic levels, according to the latest data from DAT. The firm said the national average van rate fell 1 cent to $2.06 per mile, but remains just 3 cents below the post-hurricane peak of early October.
For the first time since DAT began reporting its data in the current format, the monthly spot rate has exceeded the contract rate at the same time in all three modes. And the latest DAT Trucking Freight Barometers are continuing to signal that the ‘fall surge’ is happening for the first time since 2007. Now is a good time to have secured capacity and a bad time to be locked into contract rates.
The momentum in both contract and spot rate increases should feel like a rocket ship. For the first time in years, fleets will enjoy pricing power
Grain supplies have been trending up in the U.S. as prices have remained relatively stable, causing farmers to hold onto their crops longer hoping for a boost in prices. Hurricane Harvey, though, is making the situation worse as grain exports have nearly stopped.
The Port of Houston is expected to open today after shutting down operations last Friday ahead of Hurricane Harvey.
The Shippers Conditions Index has improved slightly in August, although it remains in negative territory, according to the latest update from FTR. At the same time, DAT reported a decline in capacity last week on the spot market, which occurred before Hurricane Harvey struck Texas.
Harvey is the kerosene to accelerate the trends towards a major capacity crunch in the truckload industry. With as much as ten percent of capacity being impacted, combined with surpluss demand coming from relief and rebuilding- the truckload market capacity is expected to be super tight
While the third quarter may be a slow time for contract renewals between carriers and shippers, a few deals have been done so far and the early indications are contract rates are heading up.
Citing the need to cover additional costs during peak holiday shipping periods, UPS has announced a new peak surcharge that will be added to packages shipped during certain weeks this holiday season.
Apple CEO Tim Cook confirmed in a Bloomberg interview on Tuesday that the company is working on autonomous technology, further fueling speculation that the software giant is developing a self-driving Apple car.
The nation is about to heat up starting this weekend, and that could drive more volatility to already rising spot rates for agricultural haulers and shippers.
If past Roadcheck trends hold true, shippers moving flatbed loads will face higher rates because of this year’s inspection blitz. But they won’t be the only ones impacted by the Commercial Vehicle Safety Alliance’s annual safety campaign, which begins today and runs through June 8.
A petition has been filed asking EPA to reconsider its Phase 2 GHG rules based on a procedural step that may have been missed. Also, spot rates climb and cargo theft remains a top concern.
With the summer months quickly approaching and bringing with them, many hope, more home building and construction jobs, flatbed haulers are hoping to continue the momentum they have built early in 2017.
The Northeast has exited a period of cloudy, rainy weather that has held down freight volumes into and out of the region. That is just one of the weather-related stories this week that have affected rates across the nation.
“If the thesis is that all of these small carriers who’ve been running illegally will be put out of business were they to comply with this mandate, there is no incentive for them to comply.” That is part of the reasoning that Stifel analysts have used to suggest the ELD mandate will not drive up shipping rates.
A futures market will react to the underlying fundamentals of its physical market because in the end, the futures price is linked to the physical market. But, the opposite is also true. A physical market can look to a futures market for transparency and guidance on rate structure. A developing trucking freight futures market might be the answer to solving these industry issues.
