Rates

Given the decent health of the economy, specifically the freight economy, it comes as no surprise to see the less-than-truckload (LTL) market having a strong 2018. Less Than Truckload Pricing Report. Old Dominion Freight Pricing

A large majority of freight transportation and logistics industry stakeholders, including shippers, motor carriers, 3PLs, brokers, and others, continue to marvel at the overall state of market conditions, especially in the trucking sector. That comes with good reason, too, especially when considering that, in many ways, the confluence of factors contributing to the current market outlook paint a more than positive picture in various ways.

The prevalent theme of rate gains for both truckload and intermodal freight movements remained fully intact in April, according to data in the most recent editions of the of the Truckload Linehaul Index and Intermodal Index from Cass Information Systems and Broughton Capital.

If you are in the trucking business, things are going pretty well of late, it seems, right? A few key monthly reports issued this week-FTR’s Trucking Conditions Index (TCI), and the Cass Freight Index-indicate that the answer to that question is a resounding “YES” and truly drive home that there may be, at the moment, not a better time for the trucking industry.

Rate gains for both truckload and intermodal activity remains an ongoing theme, based on data in the the most recent editions of the Truckload Linehaul Index and Intermodal Index from Cass Information Systems and Broughton Capital.

I was having lunch with a friend of mine who had recently conducted a transportation sourcing event. As we ate, he bemoaned the results of his recent attempt to obtain better rates through his company’s process. “Our rates are going up and the carriers are completely unwilling to negotiate with us—where did we go wrong?”

In February, freight shipments and expenditures each saw annual gains, with shipments up for the 17th consecutive month and expenditures up for the 14th consecutive month.

December national averages for dry and reefer (refrigerated) van rates, respectively, saw 2017 highs, said DAT, and the national average flatbed rate was even with its high for the year, too.

For more than a while, we have seen slow and steady economic improvements that have manifested themselves in many ways through things like improving retail sales, United States-bound imports, modal volume, and some signs of sustained GDP growth. Now, take those factors and consider what is happening in trucking, with things like the recently implemented electronic logging device mandate, still-tight capacity coupled with increased demand, the ongoing difficulty regarding hiring and retaining truck drivers, and carriers now having the upper...

Less-than-truckload (LTL) shippers are facing what top trucking executives are calling a “new era” in LTL pricing because of a combination of pent-up demand, surging e-commerce deliveries and a tightening capacity due to increased government regulations and a shortage of qualified drives.

Trade and transport analysts see rates rising across all modes in accordance with continued expansion of domestic and international markets. Economists, meanwhile, say shippers can expect revenue growth in transport verticals to remain in the 3%-plus range.

DAT said that the primary drivers for rate gains stemmed from harsh winter weather, tight capacity, and the recently implemented ELD mandate.

While these ranges seem typical for a normal year, what may be going down in 2018 can be viewed as anything but typical.

October’s reading of 9.48 far outpaced September’s 3.5, with FTR explaining that a strong economy, combined with pressure from hurricane recovery and the ELD mandate, is creating a very tight market resulting in improved contract rates.

In the most recent edition of its Trendlines report, DAT said that the number of loads posted on the spot market increased 7.4% for the week ending November 18 compared to the week ending November 11, while the number of trucks posted remained flat.