Subscribe to our free, weekly email newsletter!


Trucking news: TransCore says April spot market is down from March, up year-over-year


May 18, 2011

Following March, which saw the highest spot market truckload volume since March 1996, the April spot market was not as strong, due in part of harsh weather conditions, according to data from TransCore.

The truckload spot market in April was down 14 percent from April but showed a 12 percent annual gain compared to April 2010, said TransCore officials. They added that freight volumes in the South and Midwest regions of the U.S. were impacted most by the weather.

On a sequential basis, TransCore reported that truckload spot market capacity increased by 6.7 percent, while freight availability for dry vans was down 9.5 percent. The firm also noted that reefer capacity was up 3.4 percent, freight availability was down 5.1 percent, and flatbed capacity and freight volumes were down 2.6 percent and 9.7 percent, respectively.

Industry analysts have noted the spot market demand has moderated compared to major increases throughout 2010 and into early 2011, which were due to easy comparisons.

This was highlighted in a recent research note by Jon Langenfeld, transportation analyst at Robert W. Baird & Co.

“[A] lack of solid normal 2Q seasonal uptick has caused moderation spot truck demand and spot pricing,” wrote Langenfeld. “Industry capacity remains tight given numerous factors (multi-year fleet underinvestment; regulatory constraints; rising costs), contractual pricing will continue to move higher, and spot pricing could quickly given lean inventories.”

And the overall economy now compared to a year ago, when a significant inventory re-build was occurring, also is factoring into trucking market conditions, according to Doug Waggoner, CEO of Echo Global Logistics, a non-asset based freight brokerage company and a provider of technology-enabled transportation and supply chain management services, in a recent interview.

“In the first half of 2010, we saw capacity get real tight as there was a general inventory re-stocking take place, and in the second half of the year that restocking subsided and we settled in on a general economic rate, which is where we are now,” said Waggoner in an interview earlier this year.

This growth rate, said Waggoner, is modest and not taxing transportation capacity. And at the same time, he pointed out it is making all the asset-based transportation carriers more healthy again through things like modest rate hikes in the less-than-truckload (LTL) sector. While on the truckload side, he noted there appears to be modest excess capacity, with carriers practicing discipline by not adding capacity to fleets, as well as underlying themes like overall economic uncertainty, increases in fuel prices, and the outcome of various government regulations like CSA 2010.

Click here for more articles on trucking.

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

The PMI, the ISM’s index to measure growth, increased 1.8 percent to 57.1 in July. This is 1.8 percent higher than the 12-month average of 55.3. The PMI has grown in 18 of the last 20 months, with economic activity in the manufacturing sector expanding for the last 14 months as the overall economy was up for the 62nd consecutive month.

YRC Worldwide, whose regional and long-haul units provide the second-largest LTL capacity in the trucking industry, narrowed its second-quarter loss to $4.9 million on $1.32 billion revenue, compared with $15.1 million loss on $1.24 billion revenue in the year-ago quarter.

With NFL training camps in full swing, it stands to reason that Congress must be replete with football fans, given how it basically has elected to punt on federal transportation funding yet again, with the Senate yesterday signing off on a ten-month bill to keep federal surface transportation funding intact through May 2015 through a nearly $11 billion stopgap measure.

Carload volumes were up 4.3 percent at 306,988, and intermodal volume for the week ending July 26 was up 3.3 percent at 264,809

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA