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