Trucking Insights: Navigating the Dynamics of the Freight Market – December 21, 2023

Trucking Insights: Navigating the Dynamics of the Freight Market – December 21, 2023

1-Authorities.png
Source: FREIGHTWAVES SONAR

This Freight Market Update for December 21 provides a detailed analysis of recent developments in the freight market and trucking industry, drawing insights from the valuable information shared by Trucking Made Successful on YouTube.

Net Change in Authorities

As of the preceding Friday, December 15th, a significant decrease of 284 carriers week over week has been noted. Throughout 2023, a consistent decline in carriers has persisted, with no month experiencing a surge in carriers. The gradual exit of capacity is evident, paralleled by a chart illustrating a substantial drop in transportation revenues since 2022.

1-Authorities.png
Source: FREIGHTWAVES SONAR

 

 

 

 

 

 

 

TransportationRevenues.png
Source: FTR Intel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spot Vs. Contract Rates

Analyzing the difference between spot and contract rates for 2022 (green) and 2023 (blue), a two-week lag in the presented numbers is observed. Despite this lag, the data indicates that contract rates in 2023 are lower than those in the corresponding period of 2022. Two weeks ago, contract carriers received $0.62 per mile more than spot carriers, with this gap progressively narrowing. Anticipated downsizing and shutdowns among contract carriers may lead to an increase in tender rejections.

Source: FREIGHTWAVES SONAR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Volumes and Rejections

Freight volumes continue to adhere to the annual cycle, remaining above the levels seen in 2019, 2020, and 2022. While volumes are currently on a downward trend, in line with the year-end pattern, rejections have exceeded 2022 levels, reaching 4.85%. This suggests that approximately 4.85% of total freight is flowing into the spot market. Despite the seasonal decrease in volumes, a substantial surge in spot market volumes is not anticipated at present.

Source: FREIGHTWAVES SONAR

 

 

 

 

 

 

 

Source: FREIGHTWAVES SONAR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diesel Prices

Diesel prices show a downward trend, but a recent slight uptick raises concerns about the future. Comprehensive market recovery assessment requires attention to the expense side of trucking, with the national average currently standing at $4.06 per gallon.

Source: FREIGHTWAVES SONAR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spot Market Conditions

Turbulence is observed across all equipment types in the spot market. Contrary to the typical year-end pattern, dry van spot volumes have significantly decreased over the past two weeks. Reefers also experienced volume decreases, deviating from historical expectations. Flatbeds, however, showed no change in volumes, departing from historical patterns that usually indicate an increase.

Source: FTR Intel

 

 

 

 

 

 

 

Source: FTR Intel

 

 

 

 

 

 

 

 

Source: FTR Intel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spot market rates continue to disappoint, with dry vans experiencing a further decrease to around $1.95 per mile on average. Reefers are also down to around $2.20 per mile on average, while flatbeds remain stable, though at a low average of around $2.30 per mile.

Source: FTR Intel

 

 

 

 

 

 

 

Source: FTR Intel

 

 

 

 

 

 

 

 

Source: FTR Intel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Headhaul Index

The headhaul index identifies areas where carriers have negotiating power. For flatbeds, the Pacific Northwest is cooling down, while the South and Southeast present a lack of capacity compared to available freight. 

Source: DAT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The reefer headhaul map indicates that Central CA and Idaho are better areas, while the Midwest is hit and miss, and the Northeast and Southeast are saturated with reefers.

Source: FREIGHTWAVES SONAR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dry vans suggest a need for trucks in the Southeast and parts of the Midwest, with an oversupply of trucks in other regions.

Source: FREIGHTWAVES SONAR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Where to Go Next Week

For reefers, markets with elevated volumes and rejections include Twin Falls ID (23.64% rejection, volume index of 34) and Ontario CA (10.21% rejection, volume index of 56).

Source: Freightwaves SONAR

 

 

 

 

 

 

 

 

 

 

Dry vans may find relatively better conditions in Green Bay WI (15.33% rejection, volume index of 64), Rock Island IL (12.15% rejection, volume index of 62), and Columbus OH (7.33% rejection, volume index of 171). Overall, adhering to the Midwest appears to be a relatively safer strategy based on the current market dynamics.

Source: Freightwaves SONAR

 

 

 

 

 

 

 

 

 

 

 

This insightful update is made possible by the expertise and content shared by Trucking Made Successful on YouTube.

T: (425) 242-5252
O: 425-242-5252
E: dom@dokagency.com
A: 1500 Benson Road South, Suite 201 Renton, WA 98055

Dominik Kunigk

Managing Broker & President

Dominik was a German exchange student in high school before graduating from the University of Washington in Business Administration – Information Systems and Retail Management. His insurance career started in 2008 when he decided leave his retail management career behind to start his own business. His American Family Insurance agency quickly grew to service 700 clients and families. While the idea of becoming an independent broker started in 2010, a horrific car accident put that plan on hold. In 2014, Dominik and his wife Michele changed from a captive agency to become the independent agency that you see today.

Our Insurance Partners

The great thing about an independent insurance brokerage like the DOK Insurance Agency is that we can offer insurance policies from literally hundreds of insurance companies and still be your advocate to each one of them.

Get a free insurance quote today

We are an independent insurance brokerage that offers a wide variety of services.

We have seen and gone through a lot of changes since we opened our doors in 2008, but one thing hasn’t changed: We are a family owned business that not only care about our clients but also about the communities that we live in.

Read More

Trucking Update: Navigating the Freight Market Dynamics – December 14 Edition

Trucking Update: Navigating the Freight Market Dynamics – December 14 Edition

Trucking Update: Navigating the Freight Market Dynamics - December 14 Edition
Trucking Update: Navigating the Freight Market Dynamics – December 14 Edition

In the ever-evolving landscape of the trucking industry, staying informed about the latest trends and market shifts is crucial for success. Our latest update from Trucking Made Successful brings insights into the recent changes in truck capacity, rejection rates, diesel pricing, spot market volumes, and more. Let’s dive into the key highlights to help you chart your course in the freight market.

Carrier Numbers and Rejection Rates

The trucking community faced another setback as 360 carrier nets were lost, maintaining a stagnant carrier count since the beginning. Despite a historically low rejection rate at 3.76%, there’s a slight uptick of 3.73% from the previous week. While this rate is lower than the last five years, the recent increase warrants attention.

Trucking Authorities
The trucking community experiences a loss of 360 carrier nets, maintaining a stagnant count since the beginning.

Rejection rate sits at 3.76%, lower than the past 5 years, but with a 3.73% increase from last week.

Diesel Pricing and Regional Trends

Diesel prices experienced a decline from $4.19 to $4.10 per gallon this week. The map indicates unfavorable refueling conditions on the West Coast and the Northeast. Truckers should plan strategically to optimize fuel costs and efficiency.

Refueling is not recommended in any West Coast or Northeast locations based on the map analysis.

Spot Market Volumes

Spot market dynamics have recently shown shifts in volume across various trailer categories:

Dry Van trailer volume has declined, while Reefers, designed for temperature-sensitive cargo, and Flatbeds, commonly used for oversized or unconventional loads, also experienced decreases in spot market volume. 📉

The volume for Dry Van trailers has decreased.

Reefers, designed for temperature-sensitive cargo, have experienced a decline in spot market volume.

Similarly, Flatbeds, commonly used for oversized or unconventional cargo, also saw a decrease in spot market volume.

This indicates a fluid and changing landscape in the spot market, with adjustments in demand and supply for different trailer types.

Spot Rates

Spot rates reflect fluctuations as well:

Dry Van: Decrease to $1.99 per mile, down by $.7 from last week

Reefers: Drop from $2.25 per mile

Flatbeds: No change, maintaining a steady five-year pattern

Volume Volatility

Notable volume increases were observed in New Mexico, Arkansas, parts of Memphis, TN, Wisconsin, Maine, and Upstate New York. Conversely, decreases occurred in Idaho, Pendleton Oregon, North Dakota, Illinois, and Vermont.

This map shows where there is increase and decrease on volume.

Rejection Dynamics

The rejection landscape experienced significant changes, with notable decreases in the Pacific Northwest, Tennessee, Kentucky, Missouri, California, Virginia, and Iowa. Conversely, increases were observed in Arkansas, parts of Houston Texas, Atlanta, Georgia, South Carolina, Connecticut, Upstate New York, Pittsburgh, Nevada, Utah, and parts of Wyoming.

This map shows where there is increase and decrease on rejections.

Head Haul Maps

Analyzing head haul maps is crucial for understanding market conditions. Blue indicates more loads than trucks, while red signals overcapacity. The data reveals varying patterns across different trailer types: Dry Vans, Reefers, and Flatbeds.

Dry Van

For Dry Van and Reefer, more loads than trucks. Red means over capacity.

Reefer

For Dry Van and Reefer, more loads than trucks. Red means over capacity.

Flatbeds

This is from DAT map, which gives more accurate data. Meanwhile, this is on the opposite from the other two which blue means over capacity and red means more trucks.

Where to Go – Strategic Insights

To navigate the freight market successfully, matching areas with dark blue on both rejection and volume maps is key. Specific insights for different trailer types include:

Reefers

Twinfalls, Idaho: 22.7% rejection, Volume Index 34%
Southern California: 8% rejection, Volume Index 54%

Dry Vans

Grand Rapids, MI: Rejection 11.27%, Volume Index 113%
Green Bay, WI: Rejection rate of 14.5%, Volume Index 71%
Rock Island, IL: 11% rejection, 65% Volume Index

Market Trajectory and Considerations

As the market trajectory reveals increased truck presence and rising rejection rates, Reefers faces challenges due to overcapacity. Trucking Made Successful notes disappointment in Reefers’ performance, leading to their decision to cease operating in this segment.

In conclusion, staying abreast of market dynamics is pivotal for making informed decisions in the trucking industry. Analyzing rejection rates, regional trends, and volume volatility will empower truckers to navigate the complexities of the freight market successfully. As the year comes to a close, strategic planning based on these insights becomes even more critical. Safe and prosperous hauling!

Trucking Update December 14: Still A Trucking Bloodbath, Still Bouncing At The Bottom

T: (425) 242-5252
O: 425-242-5252
E: dom@dokagency.com
A: 1500 Benson Road South, Suite 201 Renton, WA 98055

Dominik Kunigk

Managing Broker & President

Dominik was a German exchange student in high school before graduating from the University of Washington in Business Administration – Information Systems and Retail Management. His insurance career started in 2008 when he decided leave his retail management career behind to start his own business. His American Family Insurance agency quickly grew to service 700 clients and families. While the idea of becoming an independent broker started in 2010, a horrific car accident put that plan on hold. In 2014, Dominik and his wife Michele changed from a captive agency to become the independent agency that you see today.

Our Insurance Partners

The great thing about an independent insurance brokerage like the DOK Insurance Agency is that we can offer insurance policies from literally hundreds of insurance companies and still be your advocate to each one of them.

Get a free insurance quote today

We are an independent insurance brokerage that offers a wide variety of services.

We have seen and gone through a lot of changes since we opened our doors in 2008, but one thing hasn’t changed: We are a family owned business that not only care about our clients but also about the communities that we live in.

Read More

Thanksgiving Week in Trucking: Navigating Challenges, Finding Gratitude, and Charting the Road Ahead – December 1, 2023

Thanksgiving Week in Trucking: Navigating Challenges, Finding Gratitude, and Charting the Road Ahead – December 1, 2023

DOK Insurance Agency

Acknowledgement: Special thanks to Trucking Made Successful on YouTube for valuable insights.

In a recent update as of November 24th, the trucking industry faced a substantial setback with a loss of 2087 carriers’ nets. This unfortunate turn of events marks the highest number of carrier losses in the industry’s history, prompting a closer look at the challenges and dynamics at play.

Performance Overview (2010 until Now)

Despite the significant losses in carrier numbers, there’s a silver lining in terms of overall performance. The freight volume continues to outpace the levels observed in both 2019 and 2022. Additionally, tender rejections, a crucial metric in assessing market conditions, maintain an average of 3.61%, reflecting a positive trend amid the challenges.

 

Diesel Price Landscape

On the fuel front, there’s a glimmer of good news. Diesel prices currently stand at $4.25 per gallon, providing a welcome respite. 

A closer look at the accompanying map reveals an interesting correlation – the darker the blue, the higher the fuel prices, offering valuable insights for industry stakeholders.

Spot Market Rates for Different Hauls

Flatbed

Last week saw a modest increase in flatbed rates, with averages reaching $2.28 per mile. This aligns with a consistent 5-year pattern, showcasing the resilience of this segment despite recent industry hiccups.

Reefers

Unfortunately, reefers experienced a dip in spot rates, dropping to $2.30 from the previous week’s $2.45. This downturn raises questions about the immediate future of this segment and necessitates a closer examination of the factors influencing these fluctuations.

Dry Vans

In a more positive turn of events, dry van rates surged from $1.80 to $2.00 over the past week. This upward trajectory follows a 5-year pattern, instilling a sense of optimism for stakeholders in this category.

As the trucking industry grapples with unprecedented challenges, these updates shed light on the evolving landscape. While carrier losses present a formidable obstacle, the resilience displayed in other key performance indicators and market segments hints at the industry’s ability to adapt and overcome. Industry players are advised to stay vigilant, leveraging insights from these updates to navigate the complexities of the road ahead successfully. For more in-depth analysis and discussions on the trucking industry, be sure to check out “Trucking made successful” on YouTube.

If you want to hear more about this, click on the YouTube link below:

Trucking Update December 1: We Just Lost A Huge Number Of Authorities

T: (425) 242-5252
O: 425-242-5252
E: dom@dokagency.com
A: 1500 Benson Road South, Suite 201 Renton, WA 98055

Dominik Kunigk

Managing Broker & President

Dominik was a German exchange student in high school before graduating from the University of Washington in Business Administration – Information Systems and Retail Management. His insurance career started in 2008 when he decided leave his retail management career behind to start his own business. His American Family Insurance agency quickly grew to service 700 clients and families. While the idea of becoming an independent broker started in 2010, a horrific car accident put that plan on hold. In 2014, Dominik and his wife Michele changed from a captive agency to become the independent agency that you see today.

Our Insurance Partners

The great thing about an independent insurance brokerage like the DOK Insurance Agency is that we can offer insurance policies from literally hundreds of insurance companies and still be your advocate to each one of them.

Get a free insurance quote today

We are an independent insurance brokerage that offers a wide variety of services.

We have seen and gone through a lot of changes since we opened our doors in 2008, but one thing hasn’t changed: We are a family owned business that not only care about our clients but also about the communities that we live in.

Read More

Pre-Thanksgiving Freight Industry Report: Navigating Economic Challenges and Market Trends

Pre-Thanksgiving Freight Industry Report: Navigating Economic Challenges and Market Trends

DOK Insurance Agency

Acknowledgement: Special thanks to Trucking Made Successful on YouTube for valuable insights.

As the freight industry approaches Thanksgiving week, a comprehensive analysis reveals a resilient freight volume, fluctuating rejection rates, and intriguing market dynamics. This report, compiled with insights from Trucking Made Successful on YouTube, provides a snapshot of the trucking sector before the Thanksgiving holiday.

Freight Volume Resilience

Despite economic uncertainties, freight volume remains robust, experiencing a notable 7.7% increase. It is normal for rejection rates to rise during this time of the year, with a 6% spike attributed to carriers seeking more time with their families during the holiday season.

Diesel Price Update

As of November 23, the diesel price stands at $4.29 per gallon, bringing relief to carriers. Notably, every market, including California, witnessed a decrease in diesel prices over the past week.

Spot Vs Contract Rates

A critical aspect of the industry, the spot vs. contract market rates reveal a 0.76 per mile difference. While this gap has been decreasing, it’s essential to note that the chart is two weeks delayed, providing a snapshot of historical trends rather than current market conditions.

 

Flatbed Market Insights

The flatbed market remains relatively unchanged, with rates hovering around $2.27 per mile, still below the 5-year average. According to DAT Market Map, fewer commodities are moving in the market, indicating a potential slowdown in certain sectors.

 

Reefer Market Analysis

Reefer volumes have remained flat over the past three weeks, defying expected seasonality patterns. Despite the holiday season approaching, volumes have not seen significant changes, except in specific areas like Northern California, Phoenix Arizona, and parts of Florida. Rejection rates, while increased in some states, are not as high as anticipated for this time of the year.

Highlighted Opportunities for Reefer Market

Reefer operators looking for opportunities before Thanksgiving week should consider Spokane WA, where one-third is experiencing rejection, while half of the loads in Florida and Idaho are rejected. These regions offer relatively better chances for grabbing opportunities.

 

Dry Van Market Trends

Dry van volumes experienced a small increase, but spot market rates decreased to $1.80 per mile. Significant increases in rejection rates were observed in the Midwest and some southern and mid coast regions, with Northern and Western states witnessing a decrease. Wisconsin, Iowa, and Rockland, IL, stand out as regions with around 10% rejection rates, offering better opportunities for dry van operators.

Theories on Market Dynamics:

Trucking Made Successful proposes intriguing theories on the current market dynamics before Thanksgiving. Larger companies appear to be parking their trucks rather than hiring, theoretically decreasing overall capacity. There’s speculation that some carriers, instead of shutting down, have parked their trucks, waiting for a more favorable market before re-entering to capitalize on the holiday season.

As the freight industry navigates economic challenges before Thanksgiving, understanding market trends and potential opportunities is crucial for trucking operators. This report, with insights from Trucking Made Successful, provides a comprehensive overview of the industry’s state before the Thanksgiving holiday, offering valuable information for decision-makers in the trucking sector.

T: (425) 242-5252
O: 425-242-5252
E: dom@dokagency.com
A: 1500 Benson Road South, Suite 201 Renton, WA 98055

Dominik Kunigk

Managing Broker & President

Dominik was a German exchange student in high school before graduating from the University of Washington in Business Administration – Information Systems and Retail Management. His insurance career started in 2008 when he decided leave his retail management career behind to start his own business. His American Family Insurance agency quickly grew to service 700 clients and families. While the idea of becoming an independent broker started in 2010, a horrific car accident put that plan on hold. In 2014, Dominik and his wife Michele changed from a captive agency to become the independent agency that you see today.

Our Insurance Partners

The great thing about an independent insurance brokerage like the DOK Insurance Agency is that we can offer insurance policies from literally hundreds of insurance companies and still be your advocate to each one of them.

Get a free insurance quote today

We are an independent insurance brokerage that offers a wide variety of services.

We have seen and gone through a lot of changes since we opened our doors in 2008, but one thing hasn’t changed: We are a family owned business that not only care about our clients but also about the communities that we live in.

Read More