Uncertainty abounds as we begin to look forward to the New Year. As we have seen in 2020, freight patterns and rate levels can shift suddenly, so it pays to have a strong awareness of factors that can affect the marketplace when bidding on future freight.
As we move into the fall, the truckload market is still seeing record-high spot rates. Total volumes were only up 1.6% in September compared to September 2019, but network imbalances continue to push shipments into the spot market and place pressure on pricing.
Annual bids are exceptionally important to shippers to set their plans and budgets, but all too often they are poorly executed and create problems for both shippers and carriers that persist throughout the year.
The DAT iQ analytics team takes a weekly look at how the freight markets are responding to the COVID-19 crisis, offering updates on supply and demand, pricing, plus a detailed look at DAT iQ forecasting models and how they are reacting to the business climate.
This week, DAT Chief of Analytics Ken Adamo speaks with Chris Caplice; Chief Scientist at Chainalytics, Executive Director of Center for Transportation and Logistics, and Senior Research Scientist at MIT. Chris will be transitioning to DAT as part of the recent FMIC acquisition. Watch Ken and Chris discuss further in this interview.
As we wrap up the month of May and roll into June, it becomes much more evident that the freight markets are soundly in recovery mode. Most of our key indicators are tracking towards 2019 levels and testing where they sat before COVID-19 hit the U.S.
COVID-19 has dealt a heavy blow to trucking companies. With large swaths of the economy closed, demand for truckload shipments has plummeted, and carriers have found themselves on the wrong side of a supply and demand imbalance.