Reefer capacity remains tight, volumes are strong and spot rates are very high. In fact, at $3.29/mile including fuel, national average reefer spot rates on Truckstop.com’s load boards have not yet retreated from their YTD high. Midwest to the East Coast lanes have the most momentum and may continue
Carriers are still exercising optionality and charging a premium to drive into backhaul markets.
Expect volatility to the upside in Q4.
The pricing accuracy of any given lane is based on its daily load volumes. In financial jargon, volume is referred to as liquidity. The more volume, the less friction in buying and selling, the more liquid a transaction becomes. Stocks traded on the New York Stock Exchange (NYSE) are one
Shippers, especially retailers, are giving ground on price to secure capacity for what promises to be an unpredictable Q4.
Rates pulled back by 1.3% w/w, but moves by brokerages and carriers indicate they think the rally has legs.
Tender rejections have fallen for a week, but that doesn't mean that rates will.
The reefer market is following the dry van market, broadly speaking, and setting new highs in tendered loads, tender rejections and spot rates. The average reefer spot rate on Truckstop.com’s load boards rose to $3.33/mile last week, the highest rate in several years. Reefer capacity is tighter now than
It’s official: Freight brokers have officially lost control of truckload spot rates. One of the most commonly cited benchmarks in the freight brokerage industry is the important, dense and liquid Chicago to Atlanta lane, which most brokers worth their salt can quote in their sleep. Long suppressed by carrier density
Everything is in place for a face-ripping rally in Q4.
Relationships between shippers and transportation providers are being reshuffled.
Los Angeles and Dallas are driving the national market.
Reefer markets took a leg up in August, supported by fundamentally strong demand, constrained capacity, and a renewed sense of confidence among carriers that now is the time to exercise pricing power. In spot markets, carriers are falling off loads, naming their price, and managing yield. 3PLs are giving
There's a routing guide shake-up happening right now.
Rejections and rates set to go higher from here on sustained shifts in consumer behavior.
In our view, COVID-related demand and capacity dislocations have touched off an upcycle in trucking markets supported by fundamentally constrained capacity. This week, a new batch of corporate earnings (UPS, WERN, USX, CHRW) helped us understand how transports experienced that volatility. In 2020, COVID-related volatility hit parcel carriers first
We don't think that capacity will loosen soon, but upward pressure on contract rates will take time.
Echo Global Logistics’ (NASDAQ: ECHO) second-quarter results and management commentary confirmed our basic view of the trucking market, which is that tighter capacity has made markets more sensitive, and strong volume growth is pushing spot rates up. Positive revenue guidance for Q3 was another strong signal of a fundamentals-driven recovery
First, reports came out that Uber Freight (UF) was being “re-evaluated,” although its demise was not imminent. The more recent news about a potential deal to sell an equity stake in Uber Freight has renewed the industry conversation around Freight’s business model, sustainability and future. In what follows, we
Contracted truckload volumes have recovered, tender rejections are still elevated, and while some rates came in after the holiday, others didn’t. Freight brokers we spoke to were surprised that trucking markets did not meaningfully cool off after July Fourth and are increasingly convinced that freight patterns this year will
The question on our minds now is whether Dallas is the first stage of another March-like surge in refrigerated volumes driven by the coronavirus. In response to a spike in new infections, Texas officials closed bars and limited restaurants, causing outbound and inbound Dallas reefer volumes to turn upward to