Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: https://read.dmtmag.com/i/904267
BUSINESS 24 | Overdrive | November 2017 BY JAMES JAILLET Shippers fear percentage rate increas- es above 10 percent as trucking capacity continues to tighten and spot market freight activity accelerates. Spot market rates have soared in recent months, and the contract market could be next, says Jonathan Starks, FTR analyst and COO. "Spot market rates are a leading indicator," he says. "Although there is a lag, contract markets are starting to follow suit. Shippers are now taking notice and are getting worried about dealing with double-digit rate increas- es as we head toward bid season." Load boards reported strong rate gains for September and into October. DAT Solutions reported record-setting year-over-year growth. Loads on DAT's load board in September were 74 percent higher than the same month last year. Likewise, Truckstop.com data showed leaps in spot market rates for all three major truckload segments. "While the recent weather events made it feel like it happened all at once, spot markets have actually been moving in this direction for the past year," Starks says. "Load activity was rising, truck availability was falling, and rates were already up 20 percent year over year before the storms hit." Dry van saw the biggest spot market gains, 20 cents to $2.20 a mile — the segment's best per-mile monthly aver- age since April 2015. September's average outpaced September 2016's average by 31 cents. Spot market reefer rates in September jumped 16 cents to $2.28 a mile. Other than July 2017, an out- lier for reefer rates, it's the segment's highest average since July 2015. Compared to last September, reefer rates were up 23 cents a mile. Flatbed gained 8 cents in the month, pushing its per-mile average to $2.42 — the highest point since September 2014 and a 38-cent gain from last September. Shippers shiver as rates start to climb Truckstop.com's dry van rates rose 20 percent from August to September, to $2.20 per mile. Only with complete records can you track the work done on your truck and, when necessary, prove that required maintenance has been done. Log dates for every visit, and keep a schedule of future work to be done. The Partners in Business program is pro- duced by Overdrive and the consultants at business services firm ATBS. It is spon- sored by Ryder and Truckstop.com. Free Partners in Business seminars will be held at the Great American Trucking Show in Dallas, Aug. 23-25, 2018. Want more Partners in Business tips and information on how to run your small trucking business more profit- ably? Visit OverdriveOnline. com/pib-podcasts to find 20-min- ute podcasts on topics such as managing time, budgeting money and controlling fuel costs. PARTNERS IN BUSINESS TIP: LOG YOUR MAINTENANCE RECORDS Max Heine $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 Sept. - 2017 Flatbed Reefer Dry Van Source: Truckstop.com