Subscribe to our free, weekly email newsletter!


TransCore reports a near 40 percent gain in spot market van rates

By Jeff Berman, Group News Editor
March 31, 2011

The trucking spot market saw modest gains for the week ending March 24, according to data released by TransCore.

TransCore reported that linehaul rates for vans on the spot market were up 38 percent in the 64 national lanes it tracks. But it also pointed out that rate declines in the remaining lanes left the national average up 0.8 percent.

Looking at lanes with the most significant weekly gains, TransCore said that outbound rates from Atlanta were up 5.9 percent, with Atlanta and Orlando van rates each up $0.19 per mile for a 9.5 percent gain.

On the other end, TransCore said that van rates from Dallas dipped by an average of 1.7 percent, with a decline of $0.22 per mile, and a $0.21 decline from Dallas to Laredo.

“The spot market is the segment of the market that is under the most stress,” said Noel Perry, FTR Associates Managing Director and Senior Consultant, in a recent interview. “And March is the beginning of the seasonal spike in volumes, so I would expect to see what we are seeing now in the spot market.”

Perry added that at the moment on the supply side there is a belief that smaller fleets that made up a high portion of spot market capacity are the ones that are most targeted during the downturn, which, in turn, leads to restricted supply. What is happening with the spot market now, he noted, is a reflection of the upturn in the economy coupled with capacity tightening.

A recent report from Donald Broughton, an analyst at Avondale Partners, stated that the Avondale Truckload Spot Market Index is also showing that capacity is relatively tight, although it has leveled off in recent months.

“While it remains at nominally high levels and is showing ~60% YoY growth, the current directional trend suggests contract rate increases in the mid to low single digits, rather than the high single digit increases expected by some,” wrote Broughton. “Rate increases in low to mid single digits are certainly a positive for the TL carriers, however me remain cautious given that cost headwinds (i.e. driver pay, fuel, equipment) may offset much of the gains seen from pricing.”

For related stories, please click here.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

NRF's Jonathan Gold explains that the past year was replete with disruptions, slowdowns and partial shutdown, which can no longer be the norm, saying ports and dockworkers must adapt to ensure they provide shippers with the predictability and stability they need.

Last month, I gave a presentation to a group of senior transportation and supply chain executives. It was entitled “Predictable Surprises,” because it addressed how transportation and supply chain professionals can eliminate unpleasant surprises by looking at and evaluating issues in the transportation industry, and projecting how those issues will affect their companies.

The Port of Los Angeles (POLA) and the Port of Long Beach (POLB) said this week that they have formally established working groups, which they said will aim to seek new supply chain efficiencies, and focus on various aspects of port operations, including peak operations and terminal optimization in an effort to augment the San Pedro Bay port complex.

A month ago, the Shippers Conditions Index (SCI) from freight transportation consultancy FTR indicated that shippers might be traveling on a rocky road in the coming months. And one month later it appears those concerns appear to have been confirmed.

The American Association of Port Authorities (AAPA) had nothing but praise for the Senate passage over the past weekend of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015).

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA