Why Are Truckload Spot Rates Lower Than Last Year?
June freight volumes have been rising the past two weeks, ever since International Roadcheck took some capacity off the road during the first week of June. In fact, June freight volumes in the Top 100 van lanes are up 22% compared to June 2018. So why are rates 41¢ per mile lower this year?
There are a number of contributing factors. For one, a record number of truck purchases last last year has led to increased capacity. That means that shippers, freight brokers, and 3PLs have an easier time covering these volumes. In addition, the difference between truckload contract rates and spot rates is near a historic high. It’s likely that freight is switching from contract carriers and intermodal back into the spot marketplace.
Another factor is that produce harvests have been muted this year, which has slowed demand for reefer trucks. When reefer freight is soft, that capacity moves to the van market.
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