Heading into the long weekend, shipper conditions are more favorable compared to carriers, particularly for those relying on the spot market for freight. The latest data shows improved conditions for shippers, while rates remain challenging in the spot market, especially for those in need of flatbed loads.
Used truck sales remain robust in the United States; however, prices are gradually declining from the exceptionally high levels witnessed last year. The positive news for buyers is the increased availability of inventory at more reasonable prices.
In the U.S. spot market, the week ending June 23 exhibited strength for van and reefer haulers, while presenting a weakness for those in search of flatbed loads.
During the week, loadboard Truckstop observed a surge in pricing for dry van and refrigerated loads, indicating strength in these sectors. Conversely, flatbed rates experienced a significant decline, marking the most substantial price decrease since March. On the other hand, van rates reached their highest point since mid-May, as reported by Truckstop.
“The true test of van rates’ resilience will be seen in the current week,” stated the company. “Traditionally, spot rates in the final week of June are the strongest for refrigerated and dry van, second only to rates during the December holiday season. To meet seasonal expectations, substantial rate increases for both equipment types will be necessary, and such an outcome is plausible.”
Shippers experienced better conditions in April, as indicated by the Shippers Conditions Index (SCI) from FTR. The index rose from a reading of 4.5 in March to 7.1, reflecting an improvement in shippers’ overall situation.
The better shipper conditions were driven by a combination of factors in April. A decline in freight rates and reduced carrier utilization outweighed the effects of increased freight demand and the slowdown in fuel cost reductions, contributing to the overall improvement.
Industry forecaster FTR predicts that shippers will continue to experience a favorable environment until mid-2024.
According to Todd Tranausky, FTR’s Vice President of Rail and Intermodal, shippers experienced an improvement in conditions in April due to lower rates and carrier utilization.
The outlook suggests a consistently positive balance of power between shippers and carriers for at least the next 12 months. However, any economic uncertainty or unexpected weakness could potentially extend this period further and prolong the favorable conditions that shippers have enjoyed in recent months.
Source : trucknews.com
Komentar