How is the Truckload Market Now?
The domestic trucking market can sometimes be described as a roller coaster. Sometimes the market outlook is improved, and sometimes there are situations that could negatively impact the market. The Cass Truckload Linehaul Index recently reported on some news that shows that the market is not doing well. According to their report, there is a 2.9% increase in truckload rates from the previous time 12 months ago. These rate increases are based on contract prices and spot rates.
There are numerous reasons that attributed this increase. Most truckload carriers are feeling the pain from a market that has a lower truckload demand than in the past. The trucking market is dealing with some uncertain times ahead. For example, trucking companies are consistently trying to cut prices to compete with each other, but there are always rising expenses. One issue that might have caused the rate increase includes recent trucking regulations. These new regulations limit the hours that a truck driver can be on the road for safety purposes. The website of Trucking Info also reported that the number of trucking companies that closed last year increased. Trucking volumes will also plummet if the GDP growth remains low.
There are two pieces of good news for businesses that depend on truckload shipping. First, you can work with a trusted third-party logistics provider to help find better shipping quotes for you from the nation’s leading carriers. Second, gas prices are not rising, which means that this will not impact a trucking rate increase.
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