Zach Strickland and JP Hampstead discuss how the capacity maximums are affecting shippers, carriers and everyone in between.
After a week full of announcements from the election to COVID-19 vaccines, what is the current state of the freight market?
Strickland asked Hampstead how capacity is different this year than in years past.
Hampstead said capacity is very much more constrained than usual, but he thinks that the ceiling has already been hit for tender rejection rates.
However, both believe that the markets are at an earlier point in the capacity cycle than they were in 2018, which makes a difference in how the rest of the year will go.
Hampstead said a lot of the turnover has to do with driver turnover in smaller fleets and that larger fleets haven’t necessarily seen a good ability to fill their trucks with drivers.
Some shippers are upping their orders despite a continued driver shortage, as long as they are able to manage the capacity they’re holding.
Hampstead pointed to the partnership with Reliance Partners as a key source of data FreightWaves uses to understand how capacity is moving.
Looking forward, Hampstead said some of the larger shippers may try to control costs but that the carriers are subject to the driver market.
Hampstead predicted tender rejection rates will not increase, but Strickland thinks they will.
As peak freight season approaches, stick with On The Spot for weekly updates on the current market state.