Good News--The Freight Market is about to Soar

Transportation Industry is Zooming Up

I sure enjoy reading some good news.  I like news that shows we are on the upswing...news that shows forward movement is on the horizon. I read this very encouraging article by Craig Fuller,  CEO and founder of Sonar, Freightwaves.com.  Thanks Craig.   Here is my recap of and a link to the article:

Freight Market forecasting is tricky, especially today, because of the unprecedented nature of COVID-19.  Craig Fuller points out in his article that electronic tenders are an excellent way to forecast the future of the freight industry.  A tender is an actual, real time request for a load.  The tender is sent from a shipper to a trucking company a few days before the needed pick up.  Thus the tender request is a leading indicator of the direction of the freight market.

In the article Craig has excellent graphs showing this indicator.

Many groceries, consumer goods and healthcare products have consistent freight demand.  Other items such as beverages and produce are more seasonal in nature.  The predictable freight is contracted freight. Contracted freight is largely handled by major carriers.  When this contract market bottoms out then the spot freight market heats up.

Craig writes:  "Over the next few weeks we can expect parts of the economy that impact freight demand will start to come back...spot rates will firm starting in May."

That is excellent news for freight brokers.  Some of the industries that will be slow to restart like travel, large outdoor events and restaurants do not effect the freight industry in a major way.

Stay the course if you are a freight broker or take our course if you'd like to learn a career where the sky is the limit.

Moving forward,

Jeff Roach
www.brooketraining.com
214-206-1169

Trucking is Great

I'm reposting this article I found in today's trucker.  I love good news in the industry.

Trucking Conditions Rebound, Best This Year

Posted: Aug 12, 2015 1:52 PM | Last Updated: Aug 12, 2015 1:52 PM

BLOOMINGTON, IN -- While business conditions in Canada are shaky, the situation in the U.S. for the trucking industry is the best so far this year, according to the freight transportation forecasting firm FTR. 
Its just released Trucking Conditions Index (TCI) measure for June rose from May, jumping 56% to 7.66, hitting the highest level of 2015.
While freight growth slowed during the second quarter of the year, FTR said rates continue to show growth and margins are still good. Also, freight growth is on track for the sixth straight year of annual gains.
It expects regulatory conditions and a continued economic recovery to fuel an accelerating index during 2016.
Drops in fuel costs continue to be a positive for everyone involved - truckers, shippers, and consumers - said FTR, however, labor costs have shown substantial increases, which is keeping up the pressure for rising rates.
“May was the lowest level in three years, but June was the best month so far in 2015,” said Jonathan Starks, FTR’s director of transportation analysis. “Continued declines in fuel prices during July and August should help to keep the index elevated as the industry prepares for the fall shipping season."
According to Starks, the fall peak may not be as strong this year but the economy continues to chug along, and contract rates are still growing versus last year.
“The spot market has certainly slowed in 2015, relative to a very robust year in 2014. For the last week of July, the Market Demand Index (MDI) from Truckstop.com was down over 50% from 2014," he said. “Spot rates are also down, but not nearly as dramatically, and half of the decline stems solely from lower fuel prices. The truck market is quite stable at the moment and seems likely to maintain that pace until we get into 2016.”
FTR noted if fuel prices jump during 2016, just as capacity is tightening, it could cause a significant acceleration in rates.http://www.todaystrucking.com/trucking-conditions-rebound-best-this-year