09 Jul From The Summit
Summit Expedited’s first edition newsletter that features current market trends and other exciting news at Summit.
Hot Market Map and States
At the start of Q3, capacity across the country still poses a challenge to find available equipment. Top factors behind the change have been a shortage of OTR drivers and implementation of new technology to help monitor DOT regulations. This is resulting in a decrease in total load volume throughout the year for partner carriers. Together, these have caused a price surge in most major markets across the U.S.
Although prices continue to be elevated, we are starting to see a decline in outbound Florida shipments. Produce out of Florida is starting to slow and we anticipate the trend to continue westward. This transition has caused a plateau in the rates out of the Southeast, driving down costs.
Digging deeper into the market changes within the truckload market over the past year, we can see large differences compared to 2017. Fuel prices are up and load availability has skyrocketed. When comparing to last year, there has been a 72% increase in overall available freight, while available capacity has only jumped 1.5%. The truckload market that has seen the largest effect has been flatbed, increasing over 100% in loads-to-trucks ratio and over 31% increase in spot rates. We anticipate these trends to continue throughout the remainder of 2018 into peak season.
To help combat these market conditions, SEL is focusing on building stronger relationships with our partners in order to maintain capacity. Summit continues to grow our carrier base to help align the needs set by our customers. Although the market is demanding, we strive to provide great quality and service.
During the week of July 15th “Operation Safe Driver Week” will begin. The DOT will be monitoring both commercial motor vehicles and passenger vehicles on the roadways, strictly enforcing the rules of the road. Authorities will be on the lookout for any moving violations and CSA adherence. Previous inspection weeks have demonstrated a decline in truck availability for shipments moving during this time period. It is important to keep this in mind so if you plan on shipping during inspection week – plan ahead and get capacity lined up early to avoid delays in pickup!