Trucks.com: Q1 Truck Orders Plunge as Industry Works Down Backlog
Spot freight rates began falling in late 2018 and continued to decline through the first quarter, according to DAT Solutions, which tracks load prices.
Spot freight rates began falling in late 2018 and continued to decline through the first quarter, according to DAT Solutions, which tracks load prices.
Average national trucking costs hit a record $2.32 per mile in June 2018, up 29% from a year earlier, according to DAT. Since then the market has cooled, with costs averaging $1.87 per mile so far this month.
The freight matching process begins with pricing. Whenever ShipEx Logistics gets a new business opportunity from a customer or prospect, a salesperson uses DAT RateView to analyze historical rate trends for specific lanes.
Regulation remains a key concern of the trucking industry, including Federal and state rules governing driver hours and pay, according to DAT Solutions, a Portland, Ore.-based company that matches freight with carriers.
Trucking companies face an uphill climb in 2019 as a freight boom that delivered record profit for carriers over the past year begins to soften.
Following a record year for freight demand and the highest tonnage in two decades, the trucking industry expects to see slower growth in 2019, a result of economic uncertainty.
Orders for heavy-duty trucks declined in November for the first time this year, falling to the lowest level in 14 months and providing a fresh sign the North American trucking market is cooling down.
A new survey from Citi Research confirms the sticker shock of US truck rates is over and shippers may have more leverage in 2019 contract negotiations than previously thought.
Trucking companies are flexing their pricing power, pushing retailers and manufacturers to pay more to buy into a strong U.S. economy and adding to inflation pressures in supply chains.
Shipments on trucking spot markets declined 12% from August to September, according to DAT Solutions Inc., which matches available trucks and loads.