On this week’s episode of Check Call, David Spencer, director of business intelligence at Arrive Logistics, joins host Mary O’Connell of FreightWaves to dive into the September market update.
Key quotes from Spencer:
“Given where we’re at with contract compliance across the board, really the lowest levels ever now in terms of rejection rates, it’s probably a carrier problem at that point. I would highly suggest reviewing who you’re working with. There are plenty of carriers out there that would be happy to put pricing on paper. Shippers should be expecting to see elevated levels of service and strong routing guide compliance.”
“In terms of what we see in the general economy, there is certainly speculation that we could see some harder times ahead in the economy largely driven by rising interest rates. We’re trying to slow down inflation. A lot of that comes from demand destruction. From that perspective it’s reasonable to believe we have seen a peak in the LTL [less-than-truckload] space.”
“Consumer spending is largely going to be tied to energy prices, what people are paying at the pump. As fuel has come down, people have diverted funds they were spending on fuel back to those categories that they may have stepped away from as fuel prices increase.”
“… I would be surprised to see any major disruptions in the fourth quarter. Not to say that there won’t be surges in demand on a regional basis. However, with spot rates remaining significantly below contract rates and a lot of speculation about where the economy can go next year, I expect to see shippers continue to see strong routing guide compliances despite what might pop up.”
Got any pain points or things you wish were better in the supply chain and the world of transportation? Contact O’Connell to be on a future episode of Check Call.