Trucking news: TransCore says truck capacity hits a six-month high

Recent data from TransCore indicated that spot market truck capacity recorded its single highest weekly volume in the last six months. The firm said that truck availability rose 8.0 percent on its DAT Network of load boards, with truck postings for all equipment types seeing gains, including: flatbeds up 8.4 percent; reefer vans up 8.3 percent, and dry vans are up 4.9 percent from the week of May 7 to the week of May 14.

By ·

Recent data from TransCore indicated that spot market truck capacity recorded its single highest weekly volume in the last six months.

The firm said that truck availability rose 8.0 percent on its DAT Network of load boards, with truck postings for all equipment types seeing gains, including: flatbeds up 8.4 percent; reefer vans up 8.3 percent, and dry vans are up 4.9 percent from the week of May 7 to the week of May 14.

TransCore also reported that with equipment capacity up, load volume saw a drop-off, with the overall load-to-truck ratio falling from 7.6 to 6.9 loads per available truck, and the ratios for reefers, dry vans, and flatbeds down 13 percent, 8.8 percent, and 7.5 percent on a week-to-week basis.

While spot market truck capacity is up, the industry is still up against some significant challenges, according to a recent research report from Avondale Partners analyst Donald Broughton.

“Unfortunately we see increases in operating costs as outpacing increases in rates in the short to intermediate term,” wrote Broughton. “Labor, fuel, depreciation / equipment rent and maintenance—all the largest line items a trucking company faces are accelerating faster than they can be recovered in rates in an environment of declining asset utilization. Unfortunately, costs don’t drive pricing; the balance (or imbalance) between capacity and demand drives pricing. Certainly demand is continuing to grow (although now at a decelerating rate), and while the market is tight, incremental capacity additions from a variety of factors have lowered the ceiling for pricing gains.”

And while the overall market is improving on an annual basis, there has been an ongoing trend of moderation in volumes of late, according to the American Trucking Associations’ (ATA) monthly tonnage reports and the Cass Information Systems Freight Index.

“We are at a very critical juncture right now, and I don’t know which way things are going to go,” said Mike Regan, CEO & Chairman of the Board, TranzAct Technologies, the author of LM’s “It’s Personal” blog. “With gas prices [mostly] rising and consumers pulling back, one of the issues you need to take a look at is the fact that consumers filling up their tanks once a week at these increased prices makes an impact on spending and freight volumes.”


About the Author

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. Contact Jeff Berman

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!

Latest Whitepaper
eBook: Why Multi-Tier Supplier Collaboration is More Important Now
Explore the benefits of supplier collaboration including sharing demand forecasts, faster reactions to demand or capacity changes and well-coordinated product launches.
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...