Morgan Stanley sees lower truck capacity, higher rates in 2020
The report suggested that 2020 could provide a scenario similar to 2018 with regard to truck capacity and rates. In 2018, the year of the original mandate to ELDs from paper logs to enforce stricter adherence to hours of service rules, some truck capacity exited the industry in lieu of compliance. The firm believes that the 2018 mandate resulted in a high-single-digit to low-double-digit hit to truck capacity, causing TL spot rates to spike 30%, with contract rates moving 15-20% higher.
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Van rates jump as holiday rush begins
DAT, Dec 9
The holiday rush is underway. Last week, van rates hit their highest level since January, as the national average jumped to $1.94 per mile. That's 12¢ higher than the November average and just 2¢ shy of last January's peak. Rates increased on 77 of the top 100 lanes while only 8 lanes declined and 15 stayed the same.
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Entrepreneurship isn’t for everyone. The average worker bee might complain about their lousy boss or the inefficiency of their company and muse on how much better things would be if they were in charge, but the fact is few people have the rare combination of energy, guts, and determination to actually go out and create a business of their own. In short: most people would rather deal with a situation they hate than do what’s necessary to become their own boss.
For Freight’s Sake: Advice for new freight brokers and investors
FreightWaves, Nov 12
Freight markets have always been a magnet for entrepreneurs. Long gone are the days of the Vanderbilts and Carnegies, but there are still fortunes to be made in freight. FreightWaves CEO Craig Fuller has pointed out that the global freight, transportation, and logistics industries are worth over $9.6 trillion and are bigger than the global financial services markets and insurance combined.
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Van volumes keep rising. When will rates?
DAT, Oct 28
Truckload van shipments on the top 100 van lanes nearly hit a record high last week. In past years, a surge in fall freight almost always caused rates to move higher. This year we've seen two consecutive weeks of rising van volumes, yet rates are still slipping.
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Tropical storm could flood Gulf Coast this weekend
FreightWaves, Oct 17
The 2019 Atlantic cyclone season is showing no signs of letting up. A cluster of thunderstorms in the Bay of Campeche, off the eastern coast of Mexico, is becoming better organized. It could very well transform into the next tropical storm. It would be the first cyclone to make U.S. landfall since Tropical Storm Imelda seriously flooded parts of the Gulf Coast just east of Houston in mid-September.
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Shippers remain in control of pricing power as carrier sentiment rebounds
FreightWaves, Oct 10
The trucking industry operates in a market based on real-time demand and supply. When demand is higher than capacity, carriers gain negotiating power for rates. When supply is higher than demand, shippers gain negotiating power for rates.
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With hurricanes, freight movements are usually affected in three stages:
How will the Looming Recession Impact Global Supply Chains?
Logistic Viewpoints, Aug 19
The last nine recessions have been preceded by a yield rate inversion where the yield on 10-year Treasury bonds dipped below the 2-year Treasury. The stock market tumbled 800 points, or almost 3.1%, to 25,579 on Wednesday. This was due in large part to recession fears sparked by the inverted yield curve. The yield curve inverts roughly 14 months before a recession.
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