Trucking rate relief in 2022? Not so fast
Shippers hoping for trucking rate relief in 2022 are going to be severely disappointed. The trucking freight market is one of the most volatile markets on the planet, especially since 2014. What is causing these massive swings? Supply and demand, naturally. If you really want to understand the market’s rate direction, you must understand how […]
Trucking Rates per mile September 2020
In the following infographic, the FreightWaves SONAR team has provided the most recent data from SONAR to show the outbound regional average trucking rates by region. INFOGRAPHIC: Outbound Regional Average Trucking Rates according to SONAR
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 […]
Why is full truckload priced per mile?
The standard practice for pricing full truckload freight is the rate per mile. This allows freight forecasters to create logistics rate forecasts based on fixed costs rather than variable or one-time charges. The most common variable charges are the fuel surcharge (which changes weekly) and accessorial charges. By separating these costs a freight forecast can […]
Breakdown of trucking rate variations infographic
There are many different ways that full truckload rates are priced. Freight forecasters need to understand the similarities and differences for each to accurately predict transportation rates across dry van, refrigerated, flatbed, and bulk loads. Rates for full truckload Rate per mile is typically presented without a fuel surcharge included. So, a $2.00 per mile […]
How to use SONAR to monitor freight markets
Freight volumes SONAR’s outbound tender volume index (OTVI) measures electronically tendered truckload volumes across the U.S. Overall OTVI is indexed to 10,000 (March 1, 2018) and is the aggregated volume in 135 U.S. freight markets. OTVI is the most accurate near-time view of the full truckload markets. Freight forecasters use the OTVI index to monitor […]
What factors drive the trucking freight economy?
Freight forecasters need to understand what drives the freight economy in order to forecast volumes, capacity and rates. Much like the general economy, the variables that drive the freight economy are too numerous to count. However, we can narrow down the principal factors to a select few that really move the needle. Many of these […]
Why destination matters for freight rates
While origin matters for transportation rate forecasting, the destination is often times more important. The transportation rates for a backhaul destination are naturally higher than transportation rates for a headhaul market. This holds for all freight moved by truck, rail/intermodal, ocean or air.
Why spot market data provides an incomplete view of the freight market
Spot market data is often referenced as a key indicator of activity in the trucking market. But the spot market data provides an incomplete and lagging view of market activity.
How are spot rates calculated?
Transportation rate analysis is a core part of any seasoned freight forecaster’s role. While the trucking contract market represents 85% of the freight volume in the for-hire truckload industry and the trucking spot market represents just 15% of truckload demand, the most volatile rates in the truckload industry can be found in the spot market. […]
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.
Why do trucking spot rates change daily?
Trucking spot rates are the matching of real-time demand with real-time capacity on a daily basis.
