The Waterfall Theory of Freight
The waterfall theory of freight explains the factors behind how rates can fall out of contract and into the spot market. Learn how access to the best supply chain data on the market can help you manage costs at sonar.freightwaves.com.
How Index-Linked Contracts Solve the RFP Dilemma
What does the next freight cycle look like?
The rest of the year could be characterized by relatively low rates and volatility Like it or not, freight market volatility is here to stay. The post-recession environment that filled our expectations with the concept of “normal” is in the distant past. Even before the COVID-19 pandemic era, the U.S. transportation sector was experiencing an […]
SONAR now has spot to contract rate spread
SONAR now contains a spot to contract rate spread index (RATES) to help users understand the short- and long-term relationships between transactional and long-term truckload pricing trends.
How quickly the market turns
Earnings season is upon us and executives of publicly traded transportation companies are providing their results from the first quarter. They are also providing updates on current market conditions and what they see ahead. The first major player to report earnings was J.B. Hunt, the largest domestic intermodal player in the industry. As expected, earnings […]
Why do carriers expect pricing momentum to continue into 2022?
Earnings season is here and the general theme across truckload carriers is carrying higher rate momentum into 2022. Carriers have benefited from increased freight rates across the board, but not every carrier experienced record revenue in the fourth quarter. Market conditions are still quite favorable for carriers, but driver retention and recruiting continue to be […]
Spot or contract trucking rates? Neither – it’s the “market rate” you should be measuring
Trucking rates are subject to massive sways within the industry. Tariffs may arise. Storms may bring an immediate surge in demand for construction material supplies. The alternative forms of trucking – including construction – have an impact on the market. How? The answer rests with the drivers. Without drivers, the trucking rates that are stable […]
Are shippers making a mistake with low contracted rates? – Freight Forecasting
In this episode of FreightWavesTV’s Freight Forecasting, a key question is answered: Are shippers making a mistake with low contracted rates? Jason Miller, Associate Professor of Logistics at the Eli Broad School of Business at Michigan State University, discusses the current freight market and the pitfalls of pulling forward the contracted rate bid cycle with […]
What is the difference between spot rates and contract rates
When shippers are looking to move freight, they can pay one of two rates to do so: long-term contractual rates or short-term spot rates. Contract rates Contract rates make up 80% of the trucking market and make sense for both carriers and shippers when freight is consistent and travels on regular lanes. Contract rates are […]
How big is the contract market?
According to Goldman Sachs and SJ Consulting, the total North American trucking market generates $780 billion annually. Of this $780 billion, $360 billion is derived from for-hire full truckload, with most of the balance ($355 billion) from private fleets and the remainder ($65 billion) from less-than-truckload (LTL) carriers. Therefore, if we attempt to size the […]
Good news: The freight market is about to turn up
Freight market forecasting is a tricky game these days. Historical freight market data models provide good reference points, but because of the unprecedented nature of COVID-19 (a classic example of a black swan event), we have to rely on current data to understand what is taking place in the freight market. The good news is […]
Top things a trucking company can do to maximize trucking rates
Regardless of whether a trucking is primarily a dry van truckload carrier, reefer, or flatbed, all carriers have one thing in common – a desire to maximize trucking rates.
