08 Apr From the Summit – Week of 4/8/19
Summit Expedited’s newsletter featuring current market trends and other exciting news at Summit.
Capacity Continues to be In-Check
With Q1 behind us and spring officially here, we saw a slight rise in spot market rates for both dry van and flatbed loads. This anticipated trend came later than expected due to a combination of weather events and a surprising balance of load to truck ratios. Dry van rates only rose a penny, but flatbeds took a five cent jump with demand for equipment increasing.
Focusing on the topic of capacity, we have felt a drastic difference in 2019 compared to 2018. The national dry van load-to-truck ratio for March was 1.57. This is a significant decline from the 4.27 ratio at this time last year. Although 2019 is far from over, we may continue to experience a balanced market with better availability. See the diagram below for a quick look at the overall load-to-truck ratios for the past three years:
So, what are the driving forces behind our current capacity and what does this mean for you?
A surge in truckload demand in 2018 caused companies to react quickly, placing orders for additional vehicles and campaign for aggressive driver hiring, all to keep up with their demand for business. As trucks began to get delivered, additional capacity was filling the market. To give you an idea, new Class 8 truck orders were up 76% in 2018 compared to the year before. Additionally, used truck prices are at their highest value since 2015, an indicator that smaller fleets are adding to their volume as well.
The addition of these vehicles has caused less freight to hit the spot market, causing overall load-to-truck ratios to remain steady. Although produce season will inevitably spike rates, the 2019 market could potentially equate to more competitive rates and better coverage for customer’s needs compared to 2018.
SUMMIT EXPEDITED LOGISTICS SELECTED AS A BEST PLACES TO WORK FINALIST FOR THE SECOND YEAR IN A ROW!
We are excited to announce that Crain’s Chicago Business has named SEL as a finalist for the 2019 Awards! This is the second year SEL has been selected for this award and we are honored to be selected two years in a row!
Since 2008, Crain’s has highlighted local companies rated highest by their employees using surveys to gather an accurate understanding of each company based on those results (Crain’s Chicago Business.) These surveys gather information on company benefits, culture, and daily operations. SEL is among the 100 companies with the highest survey scores for 2019.
Last year, SEL was proud to accept a ranking of 32 out of 100 finalists for best places to work in Chicago. On Thursday April 11th, members of the SEL team will attend the Crain’s 2019 Best Places to Work Awards Luncheon. Stay tuned!