The trucking industry has been able to see some light at the end of the COVID-19 pandemic, due to increased demand and the spot market rates. Product manager for rates and analytics at Truckstop.com, Nick Wynkoop, stated that the trend in both demand and the rates has been on the rise. He said that June has always been the peak month and true to that, they have experienced some positivity in June. Though unlike other years, the peak season not ended as the trend has maintained an upward surge giving even more hopes to the industry.
Truckstop.com and FTR Transportation Intelligence provided a report showing that load demand increased by 5.4% to 80.05 index points and so did the spot rates, by 1.6% to $2.32. Avery Vise, FTR vice president, reiterated how unprecedented the upward trend was since in April it was so low to be at what levels the rates are currently. Dry van, refrigerated, and flatbed segments stood at 35%, 27%, and 12% respectively in early August. Similarly, DAT Solutions experienced an increase in these segments, even higher than the previous year’s rates.
Ken Adamo, DAT chief of analytics, acknowledged that the impacts of Covid-19 have been different in all the states and therefore the peaks have been different altogether. There has been a loss of balance in the carrier networks as a result of unpredictable and unstable demand rates across the states; this has therefore led to an increase in the spot freight to cover up the capacity requirements. DAT has also experienced positivity as far as the rates are concerned for a third consecutive month, even in comparison to 2019. The Reefer volumes have been on the rise, and so has the flatbed segment.
Vice president of transportation at Chainalytics, Kevin Zweier, reiterated that Covid-19 had made supply and demand to be so inconsistent in that at the beginning of the year all was doom, but currently, there are positives as far as the supply and demand are concerned. Truckers have had to adapt to the changes as most orders are retail. Vice president of carrier sales and operations at Loadsmart, Jim Nicholson, stated that he is optimistic that the upward trend would last throughout the entire year.
