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Journal of Commerce: “‘Aggressive’ US shippers keep pressure on truckload rates”

April 25, 2017

‘Aggressive’ US shippers keep pressure on truckload rates

 

Shippers, aided by excess truck capacity, are keeping pressure on truckload freight rates, even as they keep an eye on a potential tightening of capacity in the truckload market later this year. Resistance to rate hikes in the first quarter apparently kept increases to a minimum.

“The customers are being very aggressive in the marketplace, there is no question,” Joey Hogan, president and chief operating officer of Covenant Transportation Group (CTG),  a truckload operator in Chattanooga, Tennessee, said during an earnings conference call Friday.

Freight revenue at CTG, excluding fuel surcharges, dropped 3.1 percent year-over-year in the quarter to $140.1 million, and asset-based revenue from its three subsidiaries, including Covenant Transport, also dropped 3.1 percent from a year ago to $127 million.

Read more here.