On the Front

Category: Tightening Capacity

Tightening Capacity in the Market Calls for a More Strategic Approach to Freight Management

June 09, 2017 by Hank Newman

The recent load to truck ratio hit a two-year high indicating further that TL capacity is tightening up.  As we've mentioned before, the DAT Solutions metric is a good indicator of the state of the market.  If you explore the trendlines in more detail you can find certain markets that are tougher than others - like outbound Texas. http://www.dat.com/resources/trendlines/van/demand-and-capacity We are also noticing a very strong change in direction from the LTL carriers.  You may recall in our last post we mentioned increases are being requested at higher %'s, which is a clear indication pricing power has shifted.  In addition - they are getting far smarter in what they are handling and making it clear that there is certain freight they will not handle at a cheap price. I met with a large, national LTL carrier at their headquarters just last week.  They told me they are handling around 50,000 shipments a day and are not looking to increase that number. 

Posted in LTL Market Trends, Tightening Capacity, Strategic Freight Management
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