While the truckload spot market finished 2020 from a position of strength, in that it hit various highs, DAT Freight and Analytics recently pointed out that spot rates have subsequently fallen 10% since the end of the year and are pegged to head down another 8%-to-10% in the coming weeks.
Jeff Hopper from DAT provides supply chain expert commentary on the COVID-19 vaccine's 'last mile' in the distribution process, in what could be the largest product rollout of the history of the world.
A recurring theme in this pandemic-driven freight market has been tight capacity, which has fueled a seven-month rally in spot truckload rates and pushed contract rates higher at the same time.
Experts say the pandemic prompted changes in consumer behaviors that affected shipping in major and intricate ways. As an example, Adamo points to the changing consumption of nonalcoholic drinks such as soda and iced tea.
According to shipping broker DAT Freight & Analytics, in November, there were 4 1/2 truck loads needing to be shipped for every truck out there. That’s double what it was last year.
From July through the end of November, almost 31,000 trucking firms registered or obtained motor-carrier authority with the FMCSA — more than in all of 2015.
Spot market rates for van and refrigerated (“reefer”) freight again rose to all-time highs in November
Spot truckload freight postings, for the week ending December 13, fell 15%, and trucks available on the spot market rose 13%, which it said serves as an indication that spot truckload capacity is loosening up in advance of Christmas.
Spot truckload freight postings fell 15% by volume while the number of trucks posted as available on the DAT load boards increased 13% last week, a sign metrics are loosening ahead of the Christmas holiday
With less freight and more trucks in the marketplace during the week ending Dec. 13, spot truckload pricing was generally flat compared to the previous week