On the Rise & By the Truckload
Concerns that truckload pricing will continue to rise in 2022 bear out as analysts predict tighter capacity on the horizon. One of the market signifiers, the last time spot rates increased in the month of January was back in 2018 at the start of a bull market that lasted well into June of that year. With demand up 20% and capacity down 20%, the rapidly rising cost of diesel will lead to a historic price increase.
There are a number of factors to be considered when looking at trends in trucking. For instance, loads moved on the loadboard freight network increased by 35% last week for dry vans, up 17% for reefers, but down 4% in flatbeds. Carriers posting their equipment onto the loadboard was 22% lower last week compared to the same time last year, underscoring the tighter capacity in the market.
Demand will remain unpredictable inasmuch as we don’t know how much it will grow or how fast. This period of unprecedented growth and disruption of the logistics market will continue to hit the trucking industry hard. Positive signs are coming as the government looks to reduce the age requirement for out-of-state truckers from 21 to 18. This will open the industry to younger people, fresh out of high school, who can learn to drive without needing to wait and possibly find another career path.
Coming out of the pandemic, as people start returning to work and commuting, the pressure on fuel prices and the increase in traffic on the roads will hit truckers hard. With a logistics provider on your side, you can have an experienced team with a truckload of knowledgeable experts helping you navigate the trucking issues on the horizon. Bestway International’s Bestway Freight Solutions team brings decades of experience and a worldwide network of partners together to ensure your cargo keeps moving forward.