Wednesday, May 21, 2025
FreightWaves Passport
  • Home
  • Research
    • 3PLs
    • Carrier Outlook
    • Featured
    • Financials
    • Freight Market Outlook
    • Global Trade
    • Intermodal
    • Most Popular
    • News
    • Special Topic
    • Trucking
  • Education
  • Community
  • Events
  • Resources
    • Webinars
    • Meet the Team
    • Contact Us
  • Sign Up
  • Account
  • Log In
No Result
View All Result
FreightWaves Passport
  • Home
  • Research
    • 3PLs
    • Carrier Outlook
    • Featured
    • Financials
    • Freight Market Outlook
    • Global Trade
    • Intermodal
    • Most Popular
    • News
    • Special Topic
    • Trucking
  • Education
  • Community
  • Events
  • Resources
    • Webinars
    • Meet the Team
    • Contact Us
  • Sign Up
  • Account
  • Log In
No Result
View All Result
FreightWaves Passport
No Result
View All Result
Home 3PLs

Trucking Markets: Spot freight strikes back

by Tony Mulvey
Tuesday, June 16, 2020
in 3PLs, Trucking
Reading Time: 1 min read
0

(Photo: Jim Allen / FreightWaves)

Spot freight is coming back and tightening capacity across the country, even as rates out of Los Angeles fade (typical for this time of year).

On a national basis, contracted truckload tenders are being rejected at a rate of 6.4%, just below the crucial 7-10% level that ‘flips’ the market into an inflationary melt-up. When large asset-based carriers reject 7% or more of their contracted freight, it flows into the spot market, raising rates, and attracting more capacity, which results in more contracted freight being rejected, and the flywheel turns faster, until demand cools or contract rates are reset higher.

One broker we talked to this morning said that as the summer heats up, freight brokers will see margin compression, especially on their contracted freight. While July is typically softer than June, the shape of this summer is not set in stone by any means. There’s too much uncertainty on both the demand and capacity sides of the trucking market to predict capacity availability or the governing dynamic between the contract and spot markets.

We simply don’t know how the summer is going to shake out, but we tend to agree with Susquehanna analyst Bascome Majors that the chances of a ‘melt-up’ are significantly higher now than they were a month ago, and the balance between volume and capacity may be more fragile than most shippers realize.

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.

 
 
Forgot Password
Tags: 3PLfreight brokeragetrucking capacity
ShareShareTweetSend

Tony Mulvey

Research Associate, FreightWaves

Related Posts

3PLs

Rocky road on the way in 2023?

Monday, December 12, 2022
Department stores find leading economic indicators in freight market data
3PLs

Department stores find leading economic indicators in freight market data

Thursday, November 17, 2022
Lumber companies face complex freight decisions
3PLs

Lumber companies face complex freight decisions

Wednesday, October 26, 2022
Next Post

Intermodal Markets: Starting to look cheap again

Popular Research

  • How much freight do the top 100 shippers in the U.S. control?

    How much freight do the top 100 shippers in the U.S. control?

    0 shares
    Share 0 Tweet 0
  • Rocky road on the way in 2023?

    0 shares
    Share 0 Tweet 0
  • Trucking spot market prices in LA weakness

    0 shares
    Share 0 Tweet 0

By Categories

  • 3PLs (119)
  • Carrier Outlook (6)
  • Featured (71)
  • Financials (22)
  • Freight Market Outlook (1)
  • Global Trade (6)
  • Intermodal (109)
  • Most Popular (27)
  • News (81)
  • Passport Research (35)
  • Rail (98)
  • Shippers (33)
  • Special Topic (99)
  • Technology (19)
  • Trucking (160)

FreightWaves Passport




Research built for present and future c-suite executives.





Benefits

  • Research
  • Education
  • Community
  • Events

Research by Topic

  • 3PLs
  • Carrier Outlook
  • Featured
  • Financials
  • Freight Market Outlook
  • Global Trade
  • Intermodal
  • Most Popular
  • Special Topic
  • Trucking

Resources

  • Webinars
  • Meet the Team
  • Contact Us

© Copyright 2021 | FreightWaves, Inc. | All Rights Reserved

No Result
View All Result
  • Home
  • Research
    • 3PLs
    • Carrier Outlook
    • Featured
    • Financials
    • Freight Market Outlook
    • Global Trade
    • Intermodal
    • Most Popular
    • News
    • Special Topic
    • Trucking
  • Education
  • Community
  • Events
  • Resources
    • Webinars
    • Meet the Team
    • Contact Us
  • Sign Up
  • Account
  • Log In

© Copyright 2020 | FreightWaves, Inc. | All Rights Reserved