Today we are going to talk about the current freight market conditions. We know this industry is all about time. We bring you a brief about present freight market conditions so you can be updated with what is going on in the trucking industry market just by reading this summary we made for you.
Key Points This Week
·Spot rates down another $0.05/mile again for all 3 equip types - $0.33/mile y/y
· Shipper contract rates up 1% f/f – replacement rates up 11% f/f
·Top 40 lanes boy vol ave $2.31/mile excl FSC – up $0.30/mile on net average
·Carriers- do not forget to make your submission to the FMCSA on speed limiters – the deadline is just 17 days away. Roadcheck Week started yesterday.
Let's dive into our weekly market update. Low post volumes continue to track with 2018 from a demand perspective equipment posts are tracking the closest with 2019 and 2020 both were down years for truckers so if you're thinking about what the current market looks like, demand looks like 2018, supply looks like 2019-2020. Low post volumes were about 42 per cent lower than this time last year. The equipment post did increase last week after being flat for the last couple of weeks. The load to truck ratio ended last week, it's 3.44 loads per truck. The refrigerated category is almost identical to 2017 in terms of the load to truck ratio increased to 5.40. Low post volumes in the refrigerated sector are about half what they were the previous year and about eight per cent lower than in 2018.
Instead of resolving the more immediate and urgent issues faced by truck drivers on a daily basis, the FMCSA plans to impose speed limiters on all heavy vehicles. This proposal brings up more questions than answers.
Make no mistake: this is the second phase of a leveling of the transportation playing field in the sake of productivity and enhanced safety. Despite the evident lack of safety benefits for both, step one was ELDs, and phase two is now speed limiters for all trucks. It's not speed that's the issue, according to a driver with 2 million miles on the road; it's the incorrect speed for the conditions that's the issue. It's also not linear; the quicker you drive, the riskier you become. Running, 75 mph in 1-95 in Northern Maine or 80 mph on I-40 east of Reno is perfectly OK, but not through the townships of Bangor, ME, or Winnemucca, NV, on the same interstates. According to studies, the more a motorist deviates from his or her typical speed, the higher the risk of an accident.