The cargo market goes through a shake-up, and if you are a small carrier, You feel it. Rates are not what they were even a month ago, and the numbers don’t lie – The spot and contract rates are down, rejection percentages remain low and the general freight volume is slipping.The demand for freight in general is no longer 6.5% month after monthand the fuel costs have risen 6 cents per gallon over the same period. That means there are not alone Fewer loads availableBut the costs to execute those loads crawl. Moving with fewer shipments and too many trucks that chase the same cargo, brokers and shippers prevail, what keeps the rates low And makes it more difficult for small carriers to make a profit.
If you have trouble finding loads that make sense to your company, you are not the only one. Spott rates have already fallen 1% from last week And 2.7% compared to last monthwhile the contract rates have fallen 1.6% in the last 30 days. And with fuel, insurance and maintenance costs that keep eating at margins, it is clear that this market test owners and small fleets in a large way.This is one of those moments in trucks where the survival depends on making smart movements. Turning cheap cargo, just to turn the wheels, is not the answer, but sitting inactive is not either. This is the time to View the market closely, reduce unnecessary costs and concentrate on lanes that actually make a profit – Because in a market like this the carriers that Adjust and let every mile count Will be those who still stand when the tide is running. There are some markets such as Boston; Bristol, New Hampshire; And Austin, Texas, which appear like warm markets, but there are many more cold markets. Not to mention, the hot markets are small and are only good for around 1.5% of the total freight market.
At the moment the market is generally soft, which means that there are more capacity (trucks available) than freight to move. That imbalance is driving across the board. This is what the data tells us:
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The spot rates fall by 1% compared to last week, 2.7% compared to last month and 2.3% compared to last year. If your loading board exports freight, you can feel all the pinch.
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Contract rates are not much better and 1.6% decrease compared to last week, 1.6% compared to last month and 2.6% compared to last year. Even those with special lanes see speed pressure.
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The rejection figures are almost flat, which means that carriers do not reject the loads – probably because there are not many alternatives. That is a significant sign that is shrinking.
If you are an owner-operator, this trend is worrying because you are wondering when things start turning the corner. Low rejection percentages mean that brokers and shippers have more control over the prices: they simply have more carriers to choose from and with low rejection percentages, means that carriers come their way. When the demand for trucks is low, the rates follow, and at the moment both contract and spot rates show signs of decline.
