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Talking Logistics: “Time to Squeeze Carriers for Better Rates?”

February 29, 2016

Time to Squeeze Carriers for Better Rates?

Various data points related to the trucking industry suggest we’re entering a shipper’s market. For example, the ATA Truck Tonnage Index dropped 1.4 percent in January, while the Cass Truckload Linehaul Index increased only 0.4 percent year-over-year in January, “a fifth consecutive month of waning truckload pricing strength.” Here’s what ATA Chief Economist Bob Costello had to say:

“Clearly, 2016 started soft for truck tonnage. There was a deceleration in freight volumes during the second half of 2015 which continued into the first month of 2016. The winter storms that hit in January likely suppressed volumes some, but by falling 1.4%, I doubt tonnage would have been positive without the storms. So, that tells me that the inventory situation continues to weigh on truck freight volumes. The sooner the supply chain cleans out the excess stocks, the better for trucking.”

Read more here.