According to the latest report by Coyote Curve, the rates of the trucking freight including FTL dedicated truckload freight are soon going to increase as the months are heading into the holidays which is considered a peak season for the industry. When it comes to trucking freight, there are three concurrent points that are being monitored – first is the seasonal demand for the service, second is yearly procurement and the most elusive of the three which is market capacity.
These three are important determinants that aid professionals in the supply chain to determine patterns that are repeating more often which can result to a more improved supply chain as well as to make sound decisions when it comes to logistics. Based on the report of the Coyote Curve, the market is on the process of decline. One of the most recent proofs is the closing of the Spot Market Index at only -24.9 per cent. This is lower by 2.4 per cent compared to the forecast of the company.
The same report also states that the third quarter will result to an inflection point – this is when the demand is higher thus the spot market rates are also higher. This is in preparation for the last quarter which is the most hectic because of the holiday season.
According to Chris Pickett, the chief strategy officer of Coyote, the market from 2017 to 2018 resulted to suffering for majority of the truckload shippers because the rates have increased and recorded to be the highest in history. He added that in the coming year, the same challengers might be faced by shippers. For 2019, the 190 degree turn of events has resulted to challenges for a number of carriers since they were not able to meet the truck orders and spoilt the original plans as a result.
The decline continues for the FTL dedicated truckload freight market but the report stated that the rate is starting to decelerate. This is good news since the decline is no longer a cause for worry but rather something great is to be looked forward to in the coming years.