CCJ: Gap between contract, spot rates narrowing
Contract rates have spent the second half of 2022 on a slide, following a downward trendline that spot rates have seen for almost the entire calendar year.
Contract rates have spent the second half of 2022 on a slide, following a downward trendline that spot rates have seen for almost the entire calendar year.
As we close out the year, a brief recovery in truckload spot rates on DAT’s Top 50 Lanes. But overall, a lump of coal for trucking companies in 2022 as markets have shifted toward shippers.
Shippers of grain, food and other products expect to face better prospects for logistics in 2023, hoping much of the COVID-induced issues are in the past, as well as a nationwide strike by railroad workers that was averted by legislative action.
Shippers are in the driver’s seat as spot and contract rates continue to soften, but industry analysts said rates likely will stabilize throughout 2023.
Shippers of grain, food and other products expect to face better prospects for logistics in 2023, hoping much of the COVID-induced issues are in the past as well as a nationwide strike by railroad workers that was averted by legislative action.
A little glimmer of Christmas hope in the spot truckload data. The DAT Top 50 Lanes shows truckload spot rates are up 0.5% month over month.
One of the biggest problems in trucking is the way some shippers, receivers, brokers and others coerce truckers into situations where they end up violating the regulations.
The November edition of the DAT Truckload Volume Index (TVI), which was recently issued by DAT Freight & Analytics, showed relative strength, paced by volume gains as the month progressed.
Shippers turned to the spot market in the latter half of November to reduce the risk of disruptions, but rates continued their months long slide, according to a new DAT Freight & Analytics report on the month.
Economic forces, consumer demand, seasonality, natural disasters and myriad other factors contribute to transport’s cyclical market.