Beginning in the second quarter, there was a notable shift in the types of loads shippers were tendering. Why would this assist with increasing compliance?
We’re two weeks into the third quarter, a time when seasonal freight movement moderates ahead of the back-to-school season and the eventual peak holiday season. Thus far, the moderation simply hasn’t materialized.
There are many variables converging that will keep upward pressure on spot rates and tender rejections for the coming weeks. Carriers will be able to squeeze extra cents per mile over the next couple of weeks. Assets will come back online sooner rather than later, but volumes are beginning to pick up both seasonally and due to a whipsaw effect from the storm.
We may be seeing signs of a traditional January lull, but at a much higher level than years past. On a rejection-adjusted basis, tender volumes are running up 23% yoy versus 20% last week. Tender rejections continue to decline modestly, but carriers are still rejecting more than 1-in-5 contracted tenders. Stimulus can only carry the freight markets so long. Fortunately, the industrial economy is revving up and retailers have significant restocking ahead.
The stage is set for a historically strong Q1 for freight with a slow vaccine rollout keeping a lid on services spending, and consumers are flush with recent stimulus as well as the hopes for more to come. The freight bull market rages on to start 2021.
We have officially moved back into “broken record” territory that we have not seen since February. While volumes are flowing at record levels and capacity is as tight as it’s ever been, there is little volatility at the moment.
Carriers are rejecting as much freight now than at any point in the past three years. Spot rates poised to break $3/mile on a national level.
Accepted freight tenders are running up 18% year-over-year. Carriers are rejecting 1 in 4 contracted tenders and driving rates up. National spot rates above $2.75/mi. and trending higher.
By not nickel-and-diming through hidden fees, the Axle Fuel Card allows trucking companies to keep more hard-earned money in their pockets.
On today’s episode, Dooner and Chad are talking to Krispy Kreme Doughnuts guy Jayson Gonzalez, and TikTok trucker jonmosslol dials in to talk about the power of social media for […]
