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FTR's Trucking Conditions Index from April and the Cass Transportation Indexes for May identify trends such as job growth and economic conditions that could point to a weakening after a nearly two-year cycle of surging freight volumes.
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High fuel prices and inflation are among the factors prompting analysts to say the freight pendulum is starting to swing back the other way.
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Whether you set rates by hours or miles, set them based on your trucking business.
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Spot truckload freight hit new highs in January, nearly $1 a mile higher than a year ago, according to DAT Freight & Analytics, even as the number of loads moved dropped throughout the month.
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As we neared the end of 2021 and took a look at third-quarter fleet earnings reports, the news looked good — good enough that the stock prices of the group were up 15.6% during the earnings reporting season, compared to the Standard & Poor’s 500 Index that was up 7.6%.
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The DAT Truckload Volume Index, a measure of dry van, refrigerated and flatbed loads moved by truckload carriers, fell 2% in January from December 2020.
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As the COVID-19 vaccine helps return life to normal later in the year, the effect on trucking freight and rates will vary as consumer spending is expected to shift back toward services. That’s one takeaway from the transportation analysts at FTR in a recent webinar, “Preparing for 2021.”
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The huge increases in freight volume since the economic contraction are slowing, but the trucking industry still looks to see a strong 2021 in terms of both demand and rates.
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With a severe driver shortage and a supply chain still in chaos from pandemic-induced shifts in consumer behavior, one industry observer is warning of likely hoarding as we get into the holidays. Longer term, vaccine distribution is “THE driver” for broader economy recovery and the post-2021 outlook.
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Pent-up consumer demand from COVID-19 shutdowns continues to buoy spot freight rates, but a still-weak manufacturing sector has experts at FTR cautioning that things could turn downward again.
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