COLUMBUS, OH – Trucking analysts at FTR say the truck market is going through a time of significant change.
While hurricanes Harvey and Irma affected spot markets in September, helping to drive them up, FTR’s chief operating officer Jonathan Starks said the hurricanes were not the only reason they are soaring.
“While the recent weather events made it feel like it happened all at once, spot markets have actually been moving in this direction for the past year,” he said.
Load activity has been rising, while truck availability has been falling, causing rates to be up by 20% year over year before the storms hit Starks said.
FTR had previous reported an August a moderate August rating for trucking markets, but says it was largely based on contract markets, and was not wholly reflective of the current environment. Contract markets have largely been unaffected by the current tightness influencing spot market rates.
FTR says that although there is a lag, contract markets are starting to follow the lead of spot markets.
“Shippers are now taking notice and are getting worried about dealing with double-digit rate increases as we head towards bid season,” said Starks.