Information Source: Georgia Logistics and Morgan Stanley
The dry-van truckload index increased sequentially and outperformed seasonality in recent months. Truckload demand and supply are also both stronger compared to typical seasonality.
Full truckloads are continuing a seasonal increase. Demand capacity for truckload has increased sequentially and is stronger compared to typical seasonality. This trend is likely driven by produce season. Both supply and demand significantly outperformed the historical average at this time of year.
Based on upcoming dry-van truckload seasonality, a strong sequential improvement to the overall dry-van truckload index (increasing demand and contracting supply) is expected.
There has been no change in the straight-line forecast for truckload freight. Experts predict the capacity vs. demand will fall below the 2009 levels in August 2016 while staying below 2015 levels for the entire year. This is good for shippers because it keeps their costs down when they ship. For carriers, this can be an issue because it means more trucks are sitting around instead of moving freight.
What Are The Experts Saying?
Georgia Logistics and Morgan Stanley interviewed professionals working in the logistics industry. Check out some of the key takeaways from happenings in the industry:
• Flatbed truckload freight is going strong, although the report is six weeks later than last year.
• Shippers are aware and concerned about the capacity crunch on the horizon, but they are still pushing rates lower.
• Volume is increasing, but rates are lagging.
• The flatbed market is generally balanced.
• Truckload capacity is plentiful in most service areas.
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