The January 2018 freight trends report shows a significant increase in truck capacity, and a resulting drop in freight rates. Overall, rates remain higher than any time in 2017. The frigid weather and heavy snows that are affecting many parts of the country will have an effect on productivity with increased near term rate increases.
January 2018 Freight Trends
|Jan 7-Jan 13 vs. Dec 31-Jan 6||Dec 2017 vs. Nov 2017||Dec 2017 vs. Dec 2016|
|Spot Market Loads||+17%||+7.0%||+86%|
|Spot Market Capacity||+52%||-14%||-5.9%|
|Van Rates (Spot)||-0.9%||+1.9%||+22%|
|Flatbed Rates (Spot)||-0.4%||+0.0%||+19%|
|Reefer Rates (Spot)||-0.4%||+1.2%||+24%|
With the January 2018 Freight Trends showing the usual glut of truck capacity, now is a good time to review some tips and ideas on keeping trucks moving. Proper planning and attention to detail can make quite a bit of difference in the profitability of a fleet.
Watch Freight Trends. Paying attention to where freight is available show be a daily routine. Avoid areas that offer little outbound freight. If a load is paying above market rates, think about why. Is it poor freight availability in the delivery area?
Watch Fuel Prices. Diesel prices can be volatile this time of year. Just like freight availability, diesel prices should be monitored on a regular basis. If you are taking a load into a high price area, make sure your rate reflects your increased costs.
Watch the Weather. Driving in snow or ice is no fun for anyone. People in the northern part of the country don’t enjoy it, despite what you may think. For drivers unaccustomed to operating in wintry conditions, it can be a nightmare. Experienced truck drivers watch the weather and plan accordingly. Consider the weather and road conditions when bidding on a load.
The January 2018 Freight trends report shows a drop in rates due to the increase in truck capacity. As rates tighten up, don’t let the lack of available cash keep you from bidding on and taking profitable loads.
TCI Business Capital offers invoice factoring for trucking companies. Our factoring programs are customized to meet the unique needs of each company. We have more than 20 years of experience providing factoring services to fleets from 3 – 300 trucks.
If your company is being held back by slow cash flow, or if you need money to meet those daily expenses, call TCI Business Capital at (800) 707-4845, or contact us via the web for a free, no-obligation factoring consultation and quote.