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

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.

By ·

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, 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
Reduce Order Processing Costs by 80%
Sales order automation software will seamlessly transform inbound emailed and printed purchase orders into electronic sales orders that can be automatically processed into your ERP system with 100% accuracy.
Download Today!
From the June 2016 Issue
In the wildly unstable ocean cargo carrier arena, three major consortia are fighting for market share, with some players simply hanging on for survival. Meanwhile, shippers may expect deployment shifts as a consequence of the Panama Canal expansion.
WMS Update: What do we need to run a WMS?
Supply Chain Software Convergence: Synchronization Realized
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Optimizing Global Transportation: How NVOCCs Can Use Technology to Operate More Profitably
Global transportation isn't getting any easier to manage, especially for non-vessel operating common carriers (NVOCCs). Faced with uncertainties like surcharges—but needing to remain competitive when bidding against other providers—NVOCCs need the right mix of historical data, data intelligence, and technology support to make quick and effective decisions. During this webcast you'll learn how Bolloré Transport & Logistics was able to streamline its global logistics and automate contract management.
Register Today!
EDITORS' PICKS
Top 50 U.S. and Global 3PLs 2016: Technology Now the Key Differentiator
Following last year’s merger and acquisition frenzy, the speed of technology implementation by the...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo