Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/1009508
August 2018 | Overdrive | 25 www.texastrucktuning.com • 817.526.5770 Tuning solutions for EGR, DPF and DEF Problems • Nation wide network • Dealer opportunities available fuel economy Power increase possible • We Tune also construction and Agriculture equipment 5- 20% Performance and economy Tuning for all engines 10- 25% Legendary Consulting_OVD0718_PG.indd 6 6/4/18 2:17 PM Untitled-18 1 7/9/18 2:43 PM Rates in the second quarter contin- ued to increase, and conditions seem ripe for further strengthening of freight demand. "Rates are not going to be going down probably for the next year," said Avery Vise, vice president of trucking research for FTR, in June. "They're high and headed higher." The rate gains are being driven by a simple supply-and-demand imbalance, with the number of loads well outpac- ing available trucks. The spot market remains hot, Vise said, though it's still following normal seasonal trends. "Putting that another way, there doesn't seem to be structural shifts in the mix of freight," he said. "It's real- ly just a very tight market. There's a lot more freight than capacity." Spot market rates in June hit his- toric highs, according to data from Truckstop.com. Of note, reefer's per-mile average surged 21 cents in June, pushing its per-mile rate to $3.02, an 85-cent gain from the same month last year. Van's per-mile average jumped 21 cents in June from May to $2.73, a 69-cent gain from a year ago. Flatbed's per-mile average grew 13 cents in June from May to $2.88, 55 cents since a year ago. Freight availability on the DAT load boards set a new high in June, the firm reported in its monthly DAT North American Freight Index. Freight demand, measured by its ratio of loads to available trucks, climbing 9.3 percent from May. Compared to the same month last year, freight demand was up 18 percent. DAT says its data show five quar- ters of consecutive monthly rate hikes. "June capped an unprecedent- ed 15-month run of spot market rate increases, the longest sustained period of pricing power for truckers since deregulation," said Mark Montague, a DAT analyst. – James Jaillet Rates 'high and headed higher' " It's really just a very tight market. There's a lot more freight than capacity. " — Avery Vise, FTR