Summary of "Trucking and Freight Market September 5, 2024: Trucking Is Sort Of Stuck"
Latest Update on the Trucking and Freight Market
As of September 5, 2024, the speaker discusses the current state of the industry, noting a stagnant environment post-holiday. Key insights include:
- Carrier Population Decline: The market saw a net loss of 227 carriers last week, indicating a tightening in capacity.
- Contract vs. Spot Rates: Contract carriers are earning an average of 61 cents more per mile than spot carriers. The relationship between contract and Spot Rates is influenced by rejection levels, which have recently declined to a low of 4.56%.
- Volume Trends: Overall freight volumes are higher than in 2023 but experienced a typical post-Labor Day drop. The speaker questions how much they will rebound.
- Diesel Prices: Diesel Prices have decreased, currently averaging $3.71 per gallon nationally, which could affect operational costs for trucking companies.
- Equipment-Specific Insights:
- Dry Vans: Spot market rates increased by 6 cents week-over-week due to pre-holiday demand, but year-over-year rates are down by 4%. The best markets for Dry Vans include Ontario, CA, and Atlanta, GA, based on rejection and volume data.
- Reefers: Spot Rates for Reefers increased by 13 cents week-over-week, but year-over-year rates are down by 1.7%. Key markets for Reefers include Allentown, PA, and Joplin, MO.
- Flatbeds: Rates for Flatbeds decreased by 3 cents week-over-week, with year-over-year rates down by 3%. The market for Flatbeds remains challenging, with volumes down 4.5% year-over-year.
- Future Outlook: The speaker highlights that while there are signs of volume increases in certain areas, particularly for Dry Vans and Reefers, Flatbeds are struggling. The construction sector's health, indicated by building permits, is also a concern for flatbed carriers.
The video concludes with a personal reflection on the market's current state, expressing a somewhat pessimistic view of the immediate future for flatbed carriers.
Presenters/Contributors
- The speaker (not named in the subtitles).
Category
News and Commentary
