Subscribe to our free, weekly email newsletter!


Trucking: Truckload spot market in June has a record month, says TransCore

By Jeff Berman, Group News Editor
July 18, 2011

Spot market truckload volumes in June were the second-highest ever recorded in 2011 and in the 15 years they have been tracked by TransCore, the company recently reported.

June came in second on both fronts only to March 2011 and compared to May it was up 15 percent and up 37 percent annually. The firm added that June is the sixth straight month that spot market truckload volumes have topped its five-year historical comparison.

These impressive volumes are not altogether surprising, given the ongoing tight capacity situation in the truckload market although anecdotal reports indicate that capacity is not as tight as in recent months.

A research note from Wolfe Trahan analyst Ed Wolfe cited a shipper saying capacity was particularly tight during March and early April, but has seemed to have “loosened up” and spot rates have flattened out sequentially from March to April levels, with rates up about ten percent annually, in line with Transplace data.

Shippers and carriers alike have told LM in recent weeks that the spot market is still attracting top dollar rates, as carriers are reluctant to add capacity at a time when the economic recovery appears tenuous, retail sales are flat, unemployment is high, and gas prices are about a dollar higher than they were a year ago at this time.

“Carriers today are not interested in adding capacity, because rates today are about equal to what they were in 2006,” said Lana Batts, a partner at Transport Capital Partners, in a recent interview. “The price of a truck has gone up from $80,000 to $120,000 and fuel is up, too. Everything is more expensive, and the industry is still charging 2006 rates. It is not sustainable. Trucking is not as easy of a business to get into as it was before.”

TransCore also reported that truckload freight rates increased on a seasonal basis in June for all equipment types, with the national average rate up 4.5 percent in June for dry vans compared to May and up 3.8 percent compared to June 2010. The firm said that rates for reefer vans were up 5.6 percent in June compared to May and up 4.9 percent annually. Flatbed rates saw a 0.6 percent gain in June and a 7.4 percent increase annually.

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

When an industry is changing rapidly, companies must adapt in order to survive. In this whitepaper, a global publisher was seeking a partner that could mitigate risk and build a platform flexible enough for their shifting customer expectations. The solution enabled the company to rewrite their operations game plan and transform their supply chain.

Global trade management technology provider Amber Road (formerly known as Management Dynamics) said this week it has acquired ecVision, a cloud-based provider of global sourcing and collaborative supply chain solutions.

While it is already reaping myriad benefits from ORION (On-Road Integrated Optimization and Navigation), a proprietary routing platform for its drivers rolled out in late 2013, transportation and logistics bellwether UPS announced big plans for the technology this week.

Diesel prices continued their recent stretch of gains with a 3.6 cent increase this week to $2.936 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

TSA has reaffirmed its March 9 general rate increase (GRI) of $600 per 40-foot container (FEU) for all shipments, and lines have also filed a previously announced April 9 GRI in the same amount.

Article Topics

News · Trucking · Logistics · Trucking Rates · TransCore · All topics

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