New Applications for Brokerage and Property Carrying Motor Carriers
Surprisingly the number of applications for both brokers and property carrying motor carriers went up this week. The number of broker applications increased to 208 applications in the past 7 days and those applying for property carrying motor carriers increased to over 1800 new applications. That is nearly a 20% increase in applications from those looking to join the trucking market, in one of the worse trucking economies we have seen in our lifetimes.
Diesel Prices Fall Again
Diesel prices fell again this week $.027 to $2.48 per gallon for the national average. This is $0.66 from last year. With the price of oil hiring a historic low April 20th, it’s anyone guess how low the national average can go. The West Coast average also fell $.05 to $2.94 per gallon, down $0.72 from last year.
Rates and Lanes
Simply put, rates suck. Shippers are still closed carriers who normally hauled these loads, have moved over to the spot market, flooding the market with capacity. This new added capacity, coupled with 60% of the Nation’s businesses being deemed non-essential and forced to closed by local and state stay at home orders have caused freight rates to plummet for the third week in a row. According to DAT Freight & Analytics Van Load-to-Truck ratios increased 8.7% from last week, while van rates tool a 6.3% rate cut. Flatbed LTT volumes fell for the third week 13.4% from last week, along with rates falling 3.3%. Reefer LTT volumes and rates took a direct hit seeing a 11.6% decrease in volume, and a whopping 6.2% decrease in reefer rates.
While rates are low, DAT says we are not at the bottom yet. “There’s not much good news for truckers this week. Spot rates continue to fall for vans, reefers, and flatbeds, and declining load-to-truck ratios signal that a rebound is not happening just yet. The weak freight market reflects the economic malaise due to coronavirus-related shutdowns and historically low oil prices.”
The latest numbers show a massive spike from last week. Deaths have nearly doubled from last week up to over 42k deaths. Confirmed cases are rapidly approaching 800k. Protests are underway in cities across the country as people push to reopen the country.