We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Truckload spot market to remain weak throughout 2015, panelists say
newsworthy

Truckload spot market to remain weak throughout 2015, panelists say

April 15, 2015
DC Velocity Staff
No Comments

The spot market for truckload capacity, which began the year on a weak note, will stay soft for the rest of 2015. The lackluster demand should create breathing room for shippers and intermediaries who saw spot rates soar last year on the heels of a brutal winter that paralyzed many truck operations, and concerns about a West Coast port shutdown that never materialized.

A group of panelists at the NASSTRAC annual shipper conference and expo in Orlando said yesterday that current truck supply and demand is balanced and predictable. The market is not plagued with so-called exception freight, meaning that carriers are better able to handle overflow loads beyond their contractual commitments. That, in turn, means that less freight needs to be pushed into the spot market.

"There won't be much of a spot market this year," said Greg Ritter, senior vice president, strategic accounts, for XPO Logistics Inc., a third-party logistics provider that generates most of its revenue from freight brokerage. Brokerage is a transactional business that relies on the spot market to match loads with trucks.

Carrier lending is picking up steam, said Thom Albrecht, managing director, equity research at the investment research and banking concern BB&T Capital Markets. BB&T lends to about 200 carriers, and funding to support truck-leasing activity has increased by double-digit amounts. "We are providing capital," he said. "Whatever angle you're coming from, there's money right now."

Albrecht said the headline number of 3.5 percent year-on-year increases in heavy-duty net replacement capacity should be taken with a grain of salt. The totals were skewed by 5-percent gains in less-than-truckload (LTL) and tank truck capacity, and by some growth in private fleets, he said. There is virtually no growth in dry van fleets, the most prevalent form of truck carriage, he said. "It is unbelievably challenging to add capacity," he said, echoing comments made yesterday at the conference by Derek J. Leathers, president and chief operating officer of truckload and logistics giant Werner Enterprises Inc.

Albrecht added he hadn't found a shipper that had seen its truckload rates go up less than 5 percent. The level of increases may decline as the year progresses, though, Albrecht added, perhaps falling to an average of 3 percent by the third quarter. That may depend on whether, and to what degree, growth in capacity exceeds increases in the nation's industrial production, he said.

Transportation Trucking Truckload Less-than-Truckload
KEYWORDS BB&T Capital Markets XPO Logistics
  • Related Articles

    Truckload spot market rates, imbalances extend 2015 weakness into 2016

    TransRisk launches futures market to trade truckload spot market price

    Morgan Stanley's truckload spot-market index hits seasonal lows not seen since '09

Recent Articles by DC Velocity Staff

ATA cheers court ruling upholding looser hours of service caps

Carry (or at least measure) that weight

December cargo volume up in Houston, Oakland

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • Autonomous trucking firm Plus prepares its tech for mass launch in China in 2021

  • The Home Depot opens automated DC in greater Atlanta

  • For container lines and ports, what a difference a year makes

  • Outlook 2021: What’s in store for logistics supply chain?

Now Playing on DCV-TV

Jlt procure rugged devices thumb

What it takes to procure the right rugged devices for your warehouse

DCV-TV 4: Viewer Contributed
Procuring new rugged devices for your warehouse is often a big decision and a significant investment. It needs careful planning and consideration. It involves more than ticking boxes on a spec sheet. It includes testing and getting employee buy in. And it's about finding a partner that can work with you to deploy...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing