Shipper demand is at a turning point despite the slowdown in freight for the first half of 2019,
and the exchange market for truckload business is expected to be back on track in the last quarter
according to reports by officials from Coyote Logistics, based in Chicago. The Chief Strategy
Officer, Chris Pickett stated that the Christmas season and the pent-up supply would see to it that
the truckload rates go back to normal. He claimed that there was a crisis concerning demand and
supply. He commented on the "Coyote Curve," which measures three cycles; seasonal demand,
annual procurement, and market capacity.

The curve was first availed in 2018, and it predicted the predicaments the company currently
faces. The company was unprepared and therefore suffered deflation since last year, according to
Coyote Logistics officials. Pickett added that most carriers made big plans and orders based on
the previous year's favorable economic conditions. Pickett said that a further drop is expected for
the next few quarters as a result of unfavorable market conditions. He also assured that according
to the curve, higher prices for shippers are expected and the upcoming peak season will boost
truckload demand.

Picket reiterated that the kind of structure the spot market is made of allows for consistency. He
claimed that comparing contractual rates versus the spot rates; the spot rates went down while
contractual rates have been stable in 2019. In the first quarter of 2020, the spot rates are expected
to grow while the contract rates, as anticipated by Coyote Logistics, will lag. Despite the news
being suitable for freight movement, he argued that inflation will still be there in 2020.

Picket said that there has been a significant impact of the supplies that came into the U.S in 2018
and early this year, to fight the tariffs threatened to be imposed by President Donald Trump on Chinese goods, which is an important scenario to consider in relation to the impact it will have on truckload rates and pricing.

Coyote Logistics was founded in 2006 and became a UPS company in 2015. It is a global third-
party logistics provider that matches more than 10,000 shipments every day. It is based in
Chicago with over 3000 employees working in 20 offices all over the world.