National average spot rates inclusive of fuel rose 10 cents last week (3.6%) to $2.85 per mile. This was a positive development as it was the second straight weekly increase (following four straight weeks of falling rates). Spot rates are higher by 43.2% year-over-year. Given the stabilization and move up in tender rejections over the past few weeks, spot rates are trending up.
Contracted tenders fell 2.5% week-over-week, continuing a slow and modest down drift dating back to early January. It is important to note though that prior to Presidents Day, volumes were only down 0.5% and winter weather could represent another temporary drag. Contract volume on a tender rejection-adjusted basis is outpacing 2020 levels by 15% (down from 19% last week).
Relative capacity tightened by 98 basis points (bps) week-over-week to 22.65%, which indicates the fall in tenders was mostly driven by falling load volumes.
The backdrop for truckload (at least through 1H 2021) remains healthy with a strong consumer, further stimulus forthcoming and a recovering industrial economy. The back half of 2021 is much more uncertain.
Consumer spending, according to Bank of America card spending data, was up a strong 9.7% year-over-year last week.
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!
Existing Passport subscribers may log in using the form below.