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.
Load board operator DAT Solutions reported its Sept. 15 total spot rate is $2.15 per mile for average van rates nationally, down from June’s all-time high of $2.31 a mile. At the end of September 2017, the rate was $1.97 a mile.
"There is enough pressure from the economy to continue to push rates higher but at a more moderate pace going forward," said DAT industry analyst Mark Montague.
Trucks are rushing into the region to restock store shelves, but Peggy Dorf, a freight and logistics market analyst for DAT Solutions, says they won't be for much longer. "As soon as a storm is about to hit, all traffic stops in and out of the area u
"Anecdotally we've heard from at least two sources that pricing is in such flux that it doesn't make sense to sit down and negotiate a one-year agreement, so they're going to shorter agreements right now," said Mark Montague, industry pricing analyst
Desiree Wood, who is a one-woman trucking company, uses an app that shows drivers where the pay is best in the United States.