Some good news for paper producer's in and outbound shipping, truckload rates will drop 2.7% this year due to continuing overcapacity in the truckload market, after steep spot truckload rate declines in the first-quarter.
Shippers reported steep declines in first quarter spot truckload rates averaging 7.5% compared with a year ago and rates are down 2.3% from the fourth quarter.
Adding to the declining truckload demand is a continuing movement of freight from the roads to the rails. In the first quarter, shippers diverted 4.7% of their volumes from truck to rail because rail rates were still 11% lower than truckload rates on average, although that gap is the smallest in recent history.
With Crude oil just raising above $60/barrel, let’s hope shipping rates will remain low.
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