Trucker Protests in DC
The group protesting cheap freight and asking for freight broker rate transparency between freight brokers and carriers in Washington D.C. are now on Day 12. The group is over 100 strong and are reportedly asking the White House to investigate claims of price-gouging by Freight Brokers. Trucking and industry trade groups begin battling semantics, further increasing the divide between truckers and freight brokers.
Volumes and Rates
Volumes and rates has all increased this week according to freight data and analytics provider DAT Solutions. According to their weekly Trendlines report, they say this is the first time since late March, that rates rose on most high-traffic lanes last week. Load posts on the DAT One network also continued to climb, with businesses reopening in some states and produce season increasing the demand for truckload shipments. Prices and load-to-truck ratios remain low, but freight markets appear to have turned the corner.
Carrier and Broker Applications
Applications for new property carrying motor carriers and property carrying motor carriers spiked this week as new applications even as rates remain low. In our highest number of new applications in weeks, 2,065 new applications were received by people looking to start trucking companies. Also in our highest week since we started monitoring these stats, there were 243 applications for new freight broker authorities. Maybe this increase is due to the misguided focus on social media which implies freight brokers are actually profiting during this crisis. Whatever the case for the increase, it proves that most have an optimistic view on the freight industry.
As the coronavirus winds down, states are slowly starting to open and businesses are hoping to get into their “new-normal.” We have seen freight volumes increase in the past week and rates are now just starting to climb as these businesses try and get back into the groove. To date, we have 1,385,893 confirmed coronavirus cases in the United States with 81,796 deaths. 262,225 have recovered from the virus according to Worldometers.
National Diesel Price
The national average diesel price again falls, for the 17th consecutive week, down $.005 to $2.39. That is down $.766 from a year ago.