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

The PMI, the ISM’s index to measure growth fell 0.8 percent to 52.7 (a PMI of 50 or greater represents growth). PMI growth has been at 50 or higher for 31 straight months (with the overall economy growing for 74 months), and the current PMI is 1.7 percent below the 12-month average of 54.4.

The current status of FedEx’ planned acquisition of Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion, which was initially announced in April, remains in flux, with continued actions being taken by the European Commission.

Panjiva said that the 1 percent sequential growth was in line with typically flat growth from May to June, as higher monthly growth typically takes hold in July and August in advance of the holiday season.

Hackett officials described this new offering as a short-term index that offers up “the sentiment for trade at a glance,” akin to other key economic metrics like the PMI and Consumer and Carrier confidence indices, while providing access to specifically see where a group of economic indicators are in relation to trade for the current month, too.

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

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