TRUCKING MARKET * USA: Spot market truckload rates tumbling
* DC - Amid low demand, spot rates, US truckers look to cut costs
--- Lower economic activity and high inventories have sent spot market truckload rates tumbling even lower than they fell in 2015, and are not expected to disappear any time soon... This was supposed to be the year when higher truckload costs pushed more freight to intermodal rail and less-than-truckload carriers, as happened in the expansion of 2014. This was supposed to be the year when shippers agreed to pay even more to fund higher truck driver wages... This was supposed to be the year … but it was not, and it will not be. Instead, the first half of 2016 proved the softest for the U.S. economy since 2011. That’s still much better than 2008 or 2009, but cold comfort to businesses fighting to find traction in an increasingly digital economy evolving at unprecedented speed. Whether the economy improves in the second half of 2016 or slides toward recession, trucking companies will have to travel in new directions, driven by high inventories, e-commerce, new regulations and increasingly complex supply chains... There are signs the trucking market already may have hit bottom and is inching upward early in the second half of 2016. Spot market load availability rose 28 percent in June thanks to seasonal freight, boosting total volume to levels seen in 2012 and 2013, and only 12 percent below 2015 totals, according to the DAT North American Freight Index...
Washington, DC, USA - JOC, by William B. Cassidy - Aug 17, 2016