Freight News:
December market update with David Spencer
On this week’s episode of Check Call, David Spencer, director of business intelligence at Arrive Logistics, joins host Mary O’Connell to dive into the December market update.
Key quotes from Spencer:
“Our outlook certainly calls for a continuation of a weaker-than-normal spot market and carriers looking for volume to keep their trucks running. Contract business is certainly going to be a great tool for carriers to do just that. I would expect carriers to continue to chase and go after and try and acquire a contract rate into and through … the whole year really.”
“I think we’re gonna see elevated operating costs for carriers. Some decision making has to occur on the carrier side. Do they want to wait for the rates that they see as enabling them to remain and continue to be profitable? Will they decide to take rate cuts and try and break even in order to keep the trucks moving? I mean, … we’re going to enter an environment where they’re going to have to make the choice between either running profitably or shutting down that equipment. I think those decisions play a big part in what freight carriers are going to want to take or feel like they have to take as we get into next year.”
“Shippers don’t like dealing with a large number of carriers if they don’t have to, if they can get the service and the rates that they’re looking for from a smaller group. That kind of narrows who they have to work with, who they have to interact with on a day-to-day basis. [As a carrier] do whatever you can to prove to those shippers who belongs in their network.”
“I think the thing is, we’re gonna return to what I call a normal seasonality, and the markets are gonna feel like it’s following that normal cycle we would expect to see throughout the year — you know, minus maybe that pickup we would see in the spring from increased housing activity. I think we’re still gonna see the month of June cause some volatility and really raise rates a little bit.”
Got any pain points or things you wish were better in the supply chain and the world of transportation? Contact O’Connell to be on a future episode of Check Call.
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Source: freightwaves - December market update with David Spencer
Editor: Mary O'Connell