Trucking news: Spot market rates continue their ascent

As truckload capacity continues to tighten, spot market rates continue to rise. That appears to be the consensus based on research released by Avondale Partners and TransCore.

By ·

As truckload capacity continues to tighten, spot market rates continue to rise.

That appears to be the consensus based on research released by Avondale Partners and TransCore.

In a research note issued this week, Avondale analyst Donald Broughton wrote that since the Avondale Truckload Spot Market Index went positive year-over-year in November 2009 for the first time in more than a year, the index continues to rise at a very impressive—in fact, record setting—rate.

The Avondale report stated that its index continued to show steady improvement on a three-month average basis, coming in at a 253 percent increase in May, which was down slightly from April’s 260 percent gain. Despite the significant increases, Broughton noted that the year-over-year strength is somewhat exaggerated by the severe weakness in last year’s index.

“On a nominal basis the index reported a stronger reading than all historical levels reached for the month of May, as it did in April,” wrote Broughton.

“The result suggests that in the spot market, the ratio of the number of loads available versus the number of trucks available has improved so dramatically that contract market pricing has to move up materially.”

TransCore reported that its North American Freight Index saw a 3.2 percent decline in May from April, following 25 and 44 percent month-to-month gains in April and March, according to published reports. Even thought May was down sequentially, TransCore said load volume in May reached its highest level for the month in ten years.

“Spot prices have moved up dramatically, and I expect that by the end of the third quarter if will show up in data from publicly traded carriers,” said FTR Associates Partner Noel Perry. “And it takes time for price changes to mature [which impacts pricing]. If you sign a contract in December, prices won’t change until the next December.”


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!

Article Topics

All Topics
Latest Whitepaper
Is Your Logistics Strategy Keeping Pace with Your Manufacturing Efficiency?
U.S. manufacturers continue to invest in world-class technology and innovation, as a growing number of businesses choose to expand U.S.-based production — or return manufacturing from Asia.
Download Today!
From the April 2017 Issue
While adoption rates have remained relatively flat, yard management systems (YMS) are helping logistics operations turn that important space between the loading dock and the gate into a vital link in the supply chain.
Information Management: Wearables come in for a refit
2017 Air Cargo Roundtable: Positive Outlook Driven by New Demand
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
EDITORS' PICKS
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...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...