Truck Freight in 2017
1. E-commerce was a major source of spot market freight for what is usually a quiet season.
- Ordering online is putting a hurt on the traditional retail stores. Top stories today is about Kohls and Macy's stock getting thrashed because of weak sales. I know a lot of online orders is providing good business for the spot market and I think with good technology the spot market will provide a better, faster and more reliable service than the large fleets.
- I would be interesting to see how far this goes back for a first positive year-over-year. But we do know that the demand for van hit in December was the highest ever in the past two and half years.
3. Federal government transitions to a new administration.
- I don't like to get my hopes up in anything quoted by politicians. That's just me, and I would say that about all parties but the election year is OVER and that means not knowing what to do and who is going to win is behind us. I would assume working on getting something done has got to be better than spending a year not knowing what will happen.
- To add to this, I can also see brokers wanting to create more of a relationship with those that become ELD compliant before the mandate. Priority loads given to a carrier that can verify the drivers hours is a huge confidence booster for the broker that can come with some good money.
5. Should yield additional rate increases for motor carriers in 2017
- I am thinking should is an understatement. I think we are going into the best time for the spot market that I have ever seen in 6 years. Too many great signs are pointing at good stuff to come. But Mark does make some excellent points that could diminish outcomes.
6. It's not business as usual.
- So true and this is a great read for 2017