Trucking Dive: The trucking freight cycle has reached its low point, analysts say
Recent data points to a potential positive transition in the freight cycle, analysts recently said, noting some changes show promise for carriers.
Recent data points to a potential positive transition in the freight cycle, analysts recently said, noting some changes show promise for carriers.
Seasonal trends were apparent, for the week of July 21-27, in spot market data provided to LM from DAT Freight & Analytics.
According to DAT Freight & Analytics, load posts declined 3% while spot rates slumped.
While the debate over broker transparency rages and FMCSA plans action on that front (possible as soon as three months from now), DAT Chief of Analytics Ken Adamo might have just handed over the goods -- partially, anyway.
Week over week, loads and rates were down for all three equipment types. On a year-over-year basis, however, last week's market report brought good news for the dry van and flatbed segments.
Overcapacity continues to suppress the freight market, holding down rates — but are we nearing the long-awaited uptick in the cycle? Most of the analysts think so, but there’s little agreement on how soon it will happen. Despite the evidence that there are still too many trucks available to haul the freight being offered, new trucks are selling.
Average spot rates' year-over-year declines are finally easing, freight volumes are making steady improvements, and unemployment is on the rise.
Summer seasonality continues to take hold in the spot truckload freight market. The number of loads posted on DAT One fell for the second straight week, dropping by 3% to 1.83 million last week. That’s down 7% year over year. Truck posts decreased 6% to 324,253.
Overcapacity continues to suppress the freight market, holding down rates — but are we nearing the long-awaited uptick in the cycle? Most of the analysts think so, but there’s little agreement on how soon it will happen. Despite the evidence that there are still too many trucks available to haul the freight being offered, new trucks are selling.
Trucking executives in the U.S. are fanning optimism that the end of their recession may be close as freight rates look set to grow for the first time in nearly two years.