Thursday, January 5, 2017

Truck Freight in 2017

Truck Freight in 2017


Mark Montague Post

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.    
2. Dry van rates rose by a penny, the first positive year-over-year comparison in a long time.

  • 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.

 National Van Demand and Capacity



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.
4. By mid-year, carriers that still lack ELDs will find it increasingly difficult to maintain ongoing relationships with shippers, and with the large fleets and freight brokers that serve them

  • 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.

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