Dive Brief:
- Trucking shipments increased 2.1% month-to-month in April and 10.2% YoY to 1.234, while expenditures grew 0.6% month-to-month to 2.740 with a 12.8% YoY increase, according to the Cass Freight Index.
- Freight availability rose 32% in April, according to the DAT Freight Index, but flatbed rates continued to rise to $2.65 per mile (a 12-cent month-to-month increase from March), while van rates rose 2 cents to $2.16 per mile and reefer rates rose 3 cents to $2.43 per mile.
- The Cass Freight Index also noted that while electronic logging device (ELD) implementation hurt capacity in April, "those truckers most adversely effected are now beginning to get some of the loss in utilization back."
Capacity eased in April but rates will continue to spike as peak seasons approach.
Supply Chain Dive
Dive Insight:
Tight capacity in the trucking market eased somewhat in April: both demand and supply are growing quickly, but demand is still outpacing supply. The economy is experiencing a growth spurt, and right now 2018 is breaking records set by 2014 in terms of shipments and expenditures.
That said, it seems as though ELD implementation was far less bumpy than originally expected. While capacity didn't grow much month-to-month in March, growth continued in April and didn't turn negative.
Freight rates may continue to rise, especially in May and June, which are the peak seasons for agriculture and construction.
