The Future of Freight? A Mixed Bag of Beans.
In an article about freight numbers from the month of January, the Commercial Carrier Journal gives its perspective on the state of the industry in 2014, based on the opinion of several industry leaders.
Noël Perry, a Senior Consultant with the FDR expect growth rates of about 4% this year due to slow GDP growth. Still, he cautions drivers to “stay flexible” as unexpected demand may catch them off-guard, as capacity is already close to 98%.
Now onto the numbers. According to the Cass Truckload Linehaul Index, truckload linehaul rates increased by 2.9% in January, constituting the largest increase since last February.
“Persistent cost pressures, relatively tepid demand, soft pricing, increasing regulatory pressure, and a less robust used truck market” seem to be among the culprits, according to market strategist Donald Broughton.
The Cass Freight Index, on the other hand, shows shipment volumes and freight expenditures continue to go down, a trend that started in December last year.
Finally, the DAT North American Freight Index indicates that spot market freight availability increased by 24%,”exceeding December levels for only the second time since index began in 1996.”
Read the full story at the Commercial Carrier Journal.