Featured Article: 2018: Freight Space Tight, Rates Headed North
As 2017 ended and as we reported last month, a significant trend emerged that could have a significant impact on the trucking industry in 2018. We say could because there are a number of uncertainties in play. The trend involves truckload capacity remaining tight and rates inching up. The uncertainties are connected to the ELD mandate, the economy and tax reform.
So, what to believe and what does it all mean?
Let’s take a look at Truckstop.com’s Market Demand Index, which measures how many trucks are available versus how many loads there are on the spot market. Coming off a down 2016 and first quarter of 2017, the index spiked in the 2nd quarter of last year. Not surprisingly, another spike occurred after hurricanes Harvey and Irma and at the end of the year. Then came 2018: During the first week of the new year the index hit record highs.
Rates up, too. For now.
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