A new wave of trucking capacity tightness started on the West Coast and spread into inland markets. Outbound tender rejections in Los Angeles, Dallas and Chicago have all risen, particularly on lanes with backhaul (or unattractive) destinations. That matters because we’ve shown before that in a trucking markets rally, rates tend to move first where carriers already have pricing power, only gradually inflating on lanes headed into attractive headhaul markets.
The national average dry van truckload spot rate ticked up just barely to $2.85/mile including fuel, but we expect higher rates next week to reflect the currently rising tender rejection rates.
We don’t want to make too much of this week’s data; it’s just a few points in one week of improving conditions and is not setting an upward trend. But we also don’t want to understate the significance of the data we do see — a concerted move upward in tender rejections and spot rates across multiple major markets exactly when markets should be moving at the beginning of peak retail season.
For those reasons, we’re calling “game on” and telling clients that trucking markets — and intermodal too — deserve close scrutiny over the next two months as demand seems likely to further outstrip supply.
Members Only
You have selected content that's only available to members of FreightWaves Passport. As a member, you gain immediate access to the most in-depth and informative freight research available. It's your gateway to continuing education.
Members also get:
- Access to exclusive community dedicated to discussing the most important challenges facing freight.
- Monthly and Quarterly Freight Market reports keeping you informed of industry trends.
- Much, much more!
Click below to learn more and sign up today!
Subscribe
Existing Passport subscribers may log in using the form below.