Trucking: with similar volume to 2018, why is capacity better today?
Trucking Capacity and Rates Update
Market data is showing that current national trucking volumes are very similar to early March 2018 even though capacity is better and spot ratesare down 8 – 12%. Last year’s scramble to cover loads at the beginning of the 2018 has not been the same for the start of this year.
So, with similar volume YoY, why is capacity better?
To start, the end of 2017 saw two hurricanes and high volumes of retail freight driving high volumes into the market, which was very demanding on capacity through 2018.
Similarly, 2019 has seen high volumes slowly coming into the market from west coast ports amid trade war concerns with China.
The result is that a rapid multi-channel flood is more disruptive to carrier capacity than the same volume from one area moving slowly over a longer period.
Capacity and rates remain stable as this volume moves through the domestic pipeline. But the big question will be how both react as volumes from other areas of the country start to increase as we head into spring.