Truckload rates

Freight market staying ‘lower for longer,’ Cass says

July data from Cass Information Systems showed the freight market is staying “lower for longer” as both shipments and expenditures fell sharply.

Shipments during the month were down 8.9% year over year (y/y) while expenditures were off 24.4%, according to the Monday report. The drop in freight costs also incorporates lower fuel surcharges. Fuel prices were down 27% y/y in the month.

The reading on the July shipments subindex was slightly lower than the January level. Normal seasonal trends have...

https://www.freightwaves.com/news/freight-market-staying-lower-for-longer-cass-says

A major cause of inflation may have peaked; that’s good news for consumers but bad news for trucking companies 

A truck rolls down the highway. (Photo: Jim Allen/FreightWaves)

Note these sobering statistics:

  • Truckload spot rates have fallen by nearly one-third since the start of the year, while truckload contract rates have risen. 
  • The spread between truckload spot and contract rates are near an all-time high. 
  • Spot rates always lead contract rates, usually by about three months. 
  • Shippers (firms that buy trucking capacity from trucking companies) buy most of their capacity in the truckload contract market, which means they have not seen a reduction in freight rates...

https://www.freightwaves.com/news/a-major-cause-of-inflation-may-have-peaked-thats-good-news-for-consumers-but-bad-news-for-trucking-companies

Truckload van spot rates fall even faster

Trucks use highways to move America's goods. (Photo: Jim Allen/FreightWaves)

Over the past four days, the deterioration in truckload van spot rates has accelerated, falling over $.02 per mile per day on the FreightWaves National Truckload Index Linehaul Only ([fuel removed] 7-day moving average (SONAR NTIL.USA). In the past seven days, van truckload spot rates fell by $0.011/day and $0.007/day in the prior three weeks. 

The blue-shaded area is the National Truckload Index Linehaul Only (NTIL), which is based on an average of booked spot dry van loads from 250,000 lanes...

https://www.freightwaves.com/news/truckload-van-spot-rates-are-falling-even-faster

Fuel price volatility: Positive and negative implications for transportation providers

Chart of the Week: Diesel Truck Stop Price Per Gallon, Ultra-Low Sulfur Diesel Rack Price, Fuel Spread – USA  SONAR: DTS.USA, ULSDR.USA, FUELS.USA

The retail price for diesel fuel has jumped 28% since Russia’s invasion of Ukraine, or roughly $1.12 a gallon. Fuel prices are higher than they were in 2009 when the DOE reported an average price of $4.72 that May. There are still questions about how long this will last, but there are both good and bad implications for carriers and the results vary...

https://www.freightwaves.com/news/fuel-price-volatility-positive-and-negative-implications-for-transportation-providers

Truckload rate inflation suggests that service was extremely undervalued by shippers

Chart of the Week: Van Contract Initial report average base rate per mile, Van Outbound Tender Rejection Index – USA  SONAR: VCRPM1.USA, VOTRI.USA

Contract rates for dry van truckload have increased roughly 25% over the past year, or 59 cents per mile, according to FreightWaves invoice data. In the meantime, carrier compliance rates for accepting electronic requests for capacity have only improved to 81.9% from 78.5%, according to FreightWaves tender data — basically simple cost inflation for...

https://www.freightwaves.com/news/truckload-rate-inflation-suggests-that-service-was-extremely-undervalued-by-shippers

Cass index on freight costs to climb 25% in 2022

Cass data up and to the right in December

Another month, another increase in freight shipments and expenditures, according to a Wednesday report from Cass Information Systems. The Cass Freight Index saw shipments move 7.7% higher year-over-year in December with expenditures up 43.6%.

Freight found its way through the supply chain and to consumers during the holiday season even as congestion and bottlenecks remained formidable. The shipments subindex increased 4.2% seasonally adjusted from November with the monthly year-over-year growth...

https://www.freightwaves.com/news/cass-index-on-freight-costs-to-climb-25-in-2022

Truckload rate increases have done little to improve carrier reliability

Chart of the Week: Outbound Tender Rejection Index, Van Contract initial reporting average base rate per mile – USA  SONAR: OTRI.USA, VCRPM1.USA

The national Outbound Tender Rejection Index (OTRI) that measures the percentage of electronic requests for truckload capacity from shippers that carriers rejected pushed back over 22% over the Christmas holiday period, despite the fact that contract rates have increased approximately 17% over last year. Simply put, these rejections cost a lot more than...

https://www.freightwaves.com/news/truckload-rate-increases-have-done-little-to-improve-carrier-reliability

Shippers convert back to rail out of California as truckload costs continue to rise

Chart of the Week: Total Outbound Domestic Rail Container Volume (Loaded) – Los Angeles, Outbound Tender Volume Index, Ontario, Los Angeles SONAR: ORAILDOML.LAX, OTVI.ONT, OTVI.LAX

Truckload tender volumes have dropped approximately 11% over the past month out of Los Angeles while loaded domestic container shipments moving on the rail have increased 3%. It is somewhat normal for freight shipments to fade coming from Southern California this time of the year, but the extreme divergence between...

https://www.freightwaves.com/news/shippers-convert-back-to-rail-out-of-california-as-truckload-costs-continue-to-rise

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