December 2017

Overdrive Magazine | Trucking Business News & Owner Operator Info

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December 2017 | Overdrive | 25 Rising contract rates, dwindling capacity and climbing fuel prices have prompted FTR's Shippers Conditions Index to plunge of late. "Shippers are in a tough position right now," says FTR's Jonathan Starks, chief operating officer. "When you couple the hurricane impacts with increased freight demand and the fast-approaching ELD implemen- tation, there's a real fear that loads won't get delivered." Eric Starks, FTR chief executive officer, said at the CCJ Solutions Summit in November in Palm Springs, California, that rates could climb as much as 10 percent next year, given current capacity and economic conditions. Shippers face new rates reality Rates momentum persists Truckload rates in all three major segments in October continued their upward momentum, according to monthly spot market rates data from Truckstop.com. Flatbed rates in Octo- ber rose 2 cents a mile to $2.44 — the segment's highest average since September 2014. It's also a 40-cent increase over the same month last year. Reefer rates jumped 7 cents from September to $2.35 a mile. That's one of reefer's highest spot market averages since June 2015. Compared to October 2016, reefer rates were up 38 cents a mile. Dry van rates gained 6 cents from September to $2.26 a mile. That's van's highest monthly average in nearly three years and a 37-cent increase from the same month last year. Data from load board DAT Solutions corroborates Truckstop.com's numbers, noting strong gains for all three major truckload segments for October, as well as a 65 percent gain in spot market freight in the month compared to a year ago. $2.45 $2.40 $2.35 $2.30 $2.25 $2.20 $2.15 $2.10 $2.05 $2.00 $1.95 $1.90 $1.85 $1.80 June - 2015 July - 2016 Oct. - 2017 Flatbed Reefer Dry Van Source: Truckstop.com

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