The recent strength in spot rates is going up against a surge in diesel prices, as discussed in the latest release of ACT Reasearch’s Freight Forecast: Rate and Volume OUTLOOK report.
“Since there is generally no fuel surcharge in the spot market, it’s remarkable that spot rates have risen about as much as fuel costs in the past few weeks,” Tim Denoyer, vice president and senior analyst of ACT Research, said.
“Diesel costs spiked 25¢–30¢ per mile for TL fleets, which typically comes out of the spot market trucker’s pocket. But, with a lot of marginal fleets on the edge, the jump in diesel prices tightened capacity almost immediately, with spot dynamics tightening through March, demonstrating a tight market for the first time in about four years.”
“The extra $1.50 per gallon is a new capacity constraint on the TL market. The TL rate outlook has risen as tighter driver and equipment availability drive spot market momentum, with a few signs of improving demand,” Denoyer concluded.
The monthly 62-page ACT Freight Forecast report provides analysis and forecasts for a broad range of U.S. freight measures, including the Cass Freight Index, Cass Truckload Linehaul Index and DAT spot and contract rates by trailer type for the U.S. and Canada. The service provides monthly, quarterly, and annual predictions for the TL, LTL and intermodal markets over a two- to three-year time horizon, including capacity, volumes and rates. The Freight Forecast provides unmatched detail on the freight rate outlook, helping companies across the supply chain plan with greater visibility and less uncertainty.
